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CurrentC is doomed. The premise is that retailers will leverage the ACH rails to bypass the fees charged by the card brands (MC, Visa, Amex and Discover). This
by coleca 12y ago
CurrentC is doomed. The premise is that retailers will leverage the ACH rails to bypass the fees charged by the card brands (MC, Visa, Amex and Discover).
This is making the huge assumption that these same retailers who couldn't keep their customers' credit card numbers secure can somehow do a better job with their bank accounts. And for what? So we can get a free cup of Starbucks or a couple percent off a fill up?
The more retailers that get breached (Staples was the latest this week) the harder a sell that is going to be for the MCX cartel members.
A consumer who signs over their bank accounts to MCX is giving up all the protections that they currently have with their credit cards.
- gst 12y ago1) Your bank account number is relatively public anyway - afterall it's printed on all of your checks. 2) It's relatively easy to reverse an ACH debit. Which protections would I have to give up?
- hayksaakian 12y agoit is nontrivial to reverse debit fraud compared to a chargeback on a credit card.
- nicwolff 12y agoIt's not hard to reverse an ACH debit if you notice it within two months. After that, it's impossible. (And business accounts only get two days.) Also, the credit card companies are actively trying to prevent fraud and will notify you of unusual transactions; with ACH, there's no-one looking out for you but yourself.