Re:Mastercard Should Stop Selling Our Data
by carlosjobim on Sunday October 15, 2023 @08:23PM
(#37894653)
Great comment! However, I don't see any competing systems that offer built in fraud protection being widely used anywhere. Bank transfer are instant now, yes. For daily purchases they can easily replace CCs, like paying for your groceries.
You mention BNPL, but those systems AFAIK are much worse for the merchants, with very high fees. I'm not sure I understood the insurance per purchase part, but if the vendor is going to scam you, he for sure is going to scam you on the insurance as well. Who sells this insurance and how?
> There's no particular reason why this kind of financial intermediation should be a $100 billion industry, rife with inefficiencies.
What are the inefficiencies really? As a customer, paying by card deducts the money from my bank account instantly. As a merchant, card sales are paid into my bank account the next day.
> You can extend credit instantly to someone with a deposit account like you would with a credit card (with the "overdraft" being the issued credit, lots of ways to skin the UX around this).
I apologize, but I didn't understand this part. How will the merchant instantly open an account for a customer? How would this be as fast, secure and convenient as swiping a card?
You mention BNPL, but those systems AFAIK are much worse for the merchants, with very high fees. I'm not sure I understood the insurance per purchase part, but if the vendor is going to scam you, he for sure is going to scam you on the insurance as well. Who sells this insurance and how?
> There's no particular reason why this kind of financial intermediation should be a $100 billion industry, rife with inefficiencies.
What are the inefficiencies really? As a customer, paying by card deducts the money from my bank account instantly. As a merchant, card sales are paid into my bank account the next day.
> You can extend credit instantly to someone with a deposit account like you would with a credit card (with the "overdraft" being the issued credit, lots of ways to skin the UX around this).
I apologize, but I didn't understand this part. How will the merchant instantly open an account for a customer? How would this be as fast, secure and convenient as swiping a card?