Visa card network crashes, causing increased decline rates across UK and Europe

Re:Visa card network crashes, causing increased decline rate... by cf498 on Friday June 01, 2018 @05:16PM (#17210404)

>The "pay off balance within the month grace period" works only if you are on top of it all the time.

If you think about how many people using the "maxed out CC" as a loan because they cant get anything else, the financial model looks rather sound. The interest rate on those things is drastic if you are no longer in the grace period, and its an easy trap to fall into, especially if you are falling on bad times or are simply gullible.

I dont think people who have their CC balanced at the end of the month are the business model. They are in the business of providing high interest loans.

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Re:Visa card network crashes, causing increased decline rate... by bradknowles on Friday June 01, 2018 @09:11PM (#17211983)

Correct.

If you pay off your card every month, the credit card companies consider you to be a bad investment, and they even have names to describe customers like you -- "deadbeat", among others.

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Re:Visa card network crashes, causing increased decline rate... by willstrafach on Saturday June 02, 2018 @01:19PM (#17215437)

I doubt that. Card companies surely make good money on interest, but there is risk baked into that.

A customer paying off their full balance means little risk yet they still make the 1-3% processing fee.

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