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Credit cards can simply be a convenience. I pay off my cards every month but I use them so I don't have to carry cash and for ease of transactions. I know that
by Osiris 14y ago
Credit cards can simply be a convenience. I pay off my cards every month but I use them so I don't have to carry cash and for ease of transactions.
I know that Dwolla is trying to get into this by allowing transactions directly from bank accounts (no credit) with very low fees ($0.25/transaction).
- cookiecaper 14y agoDwolla, like all online banking startups dealing with real money, is just a front-end on a classical banking institution. The costs to really start your own bank, which itself would probably not even give the level of control desired, from scratch are far too excessive for a typical startup. All of Dwolla's stuff is processed by Veridian Credit Union, and they have no control after you start a transaction moving. Dwolla takes 2+ weeks to move money around. Their FiSync product is vaporware. They won't give out the documentation. Veridian, whose system they're already specially linked to, is the only user.
- ryguytilidie 14y agoBut that addresses one of the many costs, interest payments for the consumer. It doesn't address merchant costs through the percentage the cc company takes for card transactions and it doesn't address companies dealing with chargebacks.