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A comment on Visa and Mastercard agree to lower average credit card interchange fee below 1%. Parent comment

Re:Visa and Mastercard agree to lower average credit card in... by arcticbull on Friday May 19, 2023 @04:26AM (#35999258)
You are failing to price in counter-party risk, exchange rate risk, and myriad other risks. Not to mention the cost of having a whole separate point of sale for a currency nobody has - or the fees for converting it back into a currency you can pay your suppliers and taxes with. Or the cost associated with reporting.

You can pay a very similar flat 1/3 of a cent fee for an instant FedNow payment with none of those risks or costs.

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Re:Visa and Mastercard agree to lower average credit card in... by nailer on Friday May 19, 2023 @08:43AM (#36001200)
Cash, bank transfers, etc don't price in counter-party risk either. The only thing that does is Visa, and that's a layer on top of your existing statutory rights. Agreed re: fiat onramp/offramp.

0.3c is still far in excess of 0.0025c but maybe that won't matter.

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Re:Visa and Mastercard agree to lower average credit card in... by arcticbull on Saturday May 20, 2023 @12:09AM (#36009301)
The wild fluctuations in exchange rate and having a terminal for a currency nobody uses are a dramatically bigger risk than 0.3c - and yes, your counter-party risk is a non-issue in legacy finance.
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