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And this is the real value of Bitcoin et al. As more and more commerce moves to the Internet, I become increasingly irked by the credit card processing "tax" le
by ryandvm 14y ago
And this is the real value of Bitcoin et al. As more and more commerce moves to the Internet, I become increasingly irked by the credit card processing "tax" levied by Visa/Mastercard. I long for the day we can yank those leeches off the legs of the Internet economy...
- nhaehnle 14y agoOf course, Bitcoin is also designed to charge a processing fee. This is currently optional, but it is entirely conceivable that this would change in the long run if Bitcoin ever sees adoption on a serious scale. This holds especially true given that mining awards will go down. Furthermore, services built on top of Bitcoin will have such charges as well. I don't think economics as a science has a consensus theory that has withstood serious empirical shakedowns for explaining how high such fees end up in practice.
- ceph_ 14y agoYou know the bitcoin exchanges are taking a transaction fee in the same way the credit card companies are, right?
- nhaehnle 14y agoI'm very much behind on this since you wrote that two days ago, but I wrote my initial reply in the mindset of "what if Bitcoin becomes more pervasive" - as in: it gets increasingly used as an alternate currency. But of course your point still stands for the world today, and that other world will probably never come anyway.
- MichaelGG 14y ago2% for all the fraud management seems like a fairly good deal all around.
- jimktrains2 14y agoProcessors, issuers, and banks don't do fraud management for the merchant by default (though some banks may do it for the card holder). They _can_ do _some_ fraud management for merchants, but it costs an arm-and-a-leg.
- nodata 14y ago> How quaint. You think processors, issuers, and banks do fraud management for the merchant. Sure, they _can_ do _some_ stuff, but it costs an arm-and-a-leg. Don't be a condescending dick, please.
- jimktrains2 14y agoSorry. Old peeve of mine with people thinking the CC network does more than it does.
- MichaelGG 14y agoEven if it's for the customer, it's still a very good deal.