Likewise @David Smith. Thank you!
Coming back to the original topic. Retailers will whine forever about high credit card MDR. But, when consumers pay with debit card and other MOPs on which their processing costs are way lower, retailers never given them any discount.
So, IMO, retailers are more responsible than Banks for people going hungry in your village. Regardless of our divergent views on Capitalism, I hope I can enlist your support for my call to CAT to throw out the claim from retailers and fine Harcus Parker for filing a frivolous lawsuit.
01 Mar 2023 07:36 Read comment
You probably have seen Capitalism before the other systems.
I, on the other hand, have seen the other systems before Capitalism.
I'll summarize my experience by paraphrasing Winston Churchill's famous quote about democracy: "Capitalism is the worst system except for all its alternatives".
28 Feb 2023 15:33 Read comment
Absolutely not!
In a capitalism, price-value is entirely between buyer and seller.
Not government, least of all, courts have any business to interfere in that matter, except under monopoly, which credit card industry - comprising Visa, MasterCard, American Express, Discover, JCB, China UnionPay, RuPay - is certainly not.
28 Feb 2023 12:16 Read comment
Re. "a core banking system is used", AFAIK, credit card transactions are typically processed in a separate Credit Card Management System (e.g. VisionPlus, ECS) and seldom, if ever, touch a bank's core banking system (e.g. FLEXCUBE, Temenos).
28 Feb 2023 08:28 Read comment
When banks charge fees, they're greedy pigs.
When fintechs charge fees, they're driving responsible consumer behavior.
Well played Klarna.
28 Feb 2023 08:14 Read comment
I agree that it won't be too long before the "herd finds a shiny new object". Exhibit A: $29B valuation for a company making $30M revenue.
VCs will talk about positive unit economics during recession but, once recession ends, they will fund only loss making startups. Exhibit A: Poster childs of last recession are making losses even after 10 years e.g. AirBnB, RobinHood, Snap, Uber, WeWork.
But that's a feature, not bug of the VC Investment Model, which is structurally incapable of profitting off of steadily growing profitable startups and needs blitzscaling loss making startups to make money.
24 Feb 2023 08:07 Read comment
I hope CAT throws out this claim summarily and fines Harcus Parker for filing a frivolous lawsuit on top of that.
That's the only way to stop this never-ending retail industry practice of using a service, willy-nilly benefiting from it, and then crying foul after years.
If they really don't get value from credit card, retailers should stop accepting it. It's not like anybody is forcing retailers to sign a merchant account.
In fact, the blockbuster success of merchant Square / Block, iZettle, et al shows that there's a huge market of small retailers for whom interchange is even a bigger burden that still likes credit card so much that it signs up with merchant aggregators for the privilege of accepting credit card at even higher MDR because banks won't issue them a merchant account in their own names (due to their higher acquirer risk profile.)
23 Feb 2023 10:51 Read comment
"Victims Of Frauds Are Promising Targets For Subsequent Frauds. Nobody Ever Learns Anything From Experience" ~ @matt_levine .
At the risk of sounding politically incorrect, this resonates strongly with my personal experience and anecdotal evidence. There's this guy who entered an OTP 24 times to make a payment - to a scammer. Ergo my Three Strike Rule To Eliminate Cybercrime.
I predict that the regulator's planned movie to nail sending and / or receiving banks for APP Scams will not have a happy ending.
End of the day, why will a merchant love an A2A MOP becoming revocable when it does not come with the overspending kicker of credit card?
22 Feb 2023 09:50 Read comment
While there's a lot of scope for adding bells and whistles to a credit card, I don't see how credit card is an untapped opportunity for banks? With penetration reaching 300% in USA, it'd appear that banks have milked the credit card cow long ago.
14 Feb 2023 12:33 Read comment
Credit Card already has merchant KYC / KYB and transaction monitoring in order to minimize scams and frauds. But whenever a payment is declined or a merchant account is blocked because the merchant is guilty of fraud / scam / violating TOS, the common man jumps on banks and credit card networks instead of blasting the guilty merchant - just because she's the underdog. The Stripe-Flurly incident is the latest example of this.
APP / romance scams via A2A RTP happen clearly because of gross negligence of customers. By accepting liability for them, banks are further digging their own grave in the public's perception of them and their shareholders are paying for the fault of somebody else. They should instead push the regulator to enforce my Three Strike Rule to eliminate APP scams.
14 Feb 2023 12:17 Read comment
Ben GoldinFounder and CEO at Plumery
Gilbert VerdianFounder and CEO at Quant
Shantanu SharmaFounder and CEO at Sharma Labs, Inc.
Federico BaradelloFounder and CEO at Finalis
Marcus ScaramangaFounder and CEO at Minexx
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