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You can (and we do) run a locally issued debit card system with no interchange, a total annual fee to card holder of 20 to 30 bucks and a cost to the merchant t
by needusername 11y ago
You can (and we do) run a locally issued debit card system with no interchange, a total annual fee to card holder of 20 to 30 bucks and a cost to the merchant that is at least an order of magnitude lower than credit cards.
- kasey_junk 11y agoOf course you can make trade offs on feature/functionality to change what the transaction costs are. Who said you couldn't? The idea was that consumers were unhappy with credit cards. I haven't seen that. And your system sounds like a poor trade off for my use cases. It is several hundreds of dollars more expensive to me explicitly (based on card rebates on a zero fee card) and is not accepted at as many places.
- needusername 11y agoThat's a full MasterCard brand accepted globally.
- kasey_junk 11y agoHow do you get no interchange fees then? Am actually curious.
- needusername 11y agoHistoric reasons and federal price control. MasterCard wanted to introduce interchange a couple of years ago but the government said no. The MasterCard market share is high enough so that antitrust laws apply. There is still a market development fee on it but no interchange. It is may understanding that the EU views interchange as illegal but instead of outlawing it decided to curb it at 0.3%.