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The difference is that with the Target breach, people knew that they would get their credit card $$ back.
by xcubed 12y ago
The difference is that with the Target breach, people knew that they would get their credit card $$ back.
- baddox 12y agoThere are externalities to this "you don't have to worry at all about the security of your credit card info" feature.
- CalRobert 12y agoBut the way this is implemented is "credit card companies will take 3% of every transaction they perform, and then give back a very small portion of that to counteract fraud". The power we give these organizations - basically a 3% tax on every transaction - is mind boggling.
- pjc50 12y agoCompared to the spread and inconvenience on $ -> bitcoin -> $ transactions, that's quite cheap. Keeping bitcoin online enough for convenient transactions carries the small but important risk of losing your entire wallet.
- CalRobert 12y agoTrue, and there are benefits you get for that 3% (rental car insurance, reduced cost of a mugging, etc. etc.) but I still wonder if cash (not necessarily bitcoin) would be better for the system as a whole for everyday purchases.
- dmm 12y agoKeep in mind that cash has costs too. It has to be counted and secured. You have to hire a security company to pick up deposits and most banks charge for cash deposits over a certain amount.
- cma 12y agoBut then that tax gets selectively reimbursed via dividend to shareholders. Upward redistribution.
- a3camero 12y agoThe credit card companies don't actually don't give up part of their 3%. Chargebacks are up to the merchant: http://en.wikipedia.org/wiki/Chargeback_fraud http://en.wikipedia.org/wiki/Chargeback_fraud.