Visa and Mastercard decided to increase their Fees.And there is nothing y can do

figmentofmyass

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Quote from: eternalgloom on February 18, 2019, 08:44:37 AM

I'd say this is pretty great news, this gives merchants and customers even more incentive to switch over to cryptocurrency payments.
Businesses should really put this into the spotlight by giving discounts for payments with cryptocurrency.

They save on transaction fees and customers benefit from being able to buy at a discount. Win Win.

the problem is that merchants don't want to lose money to currency risk. bitcoin could crash at any time. so they turn to payment processors, but a company like bitpay charges only slightly less than visa does! offering a discount on top of that doesn't sound attractive for merchants.

if the bitcoin economy were self-sustaining and merchants could pay their suppliers in bitcoin, this wouldn't be as much of a problem. but right now, merchants need a fast POS solution where they can quickly dump bitcoin for fiat. that doesn't come free.

crzy

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Quote from: Kimi80 on February 18, 2019, 06:09:19 PM

I'm afraid that they won't allow for something to change in current currency system. As you said those organizations are powerful. Have enough power to prevent that kind of event. To big stake is in the game.

They monopolize this kind of service since they are big enough to control the prices, its hard if they will prevent the mass adoption about cryptocurrency. Now, we have more reason to fight for the legalization of cryptocurrency so we can enjoy good system in the future.

Kimi80

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I'm afraid that they won't allow for something to change in current currency system. As you said those organizations are powerful. Have enough power to prevent that kind of event. To big stake is in the game.

bitbunnny

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Quote from: Jet Cash on February 18, 2019, 01:21:33 PM

Has anyone suggested that this is a move towards the collapsing of the current debt economies. If you are in debt to the credit card companies, you are forced to maintain your relationship with them. They know that as the debt economy collapses, they will have to start seizing assets ( including houses ), and they are going to have to cover the extra costs. It will be interesting to see how they manage to include credit in the new fake crypto services they will be introducing.

And to my knowledge there is quite a number of people who have substantial debt on credit cards, at least in my countries. For many credit card limits looked more afordable to some people than the classic bank loans but they didn't realise it's actually a trap. Once your in, it's very hard to get out and credit card providers will make huge profit on them, this way or another.
As far as services related to cryptocurrencies are involved, I think that Visa and Mastercard should spread they offers in order to maintain and spread the business.

Jet Cash

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Has anyone suggested that this is a move towards the collapsing of the current debt economies. If you are in debt to the credit card companies, you are forced to maintain your relationship with them. They know that as the debt economy collapses, they will have to start seizing assets ( including houses ), and they are going to have to cover the extra costs. It will be interesting to see how they manage to include credit in the new fake crypto services they will be introducing.

pawanjain

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Nothing lasts forever

This is quite obvious and expected from a centralized organization. Although they give a justification of the thing they do, they eventually do what they want.
There will definitely be a reason for an increase in the transaction fees because if they increase the transaction fee without any reason then the public would decrease the usage of their cards.
Centralized organizations basically rule the world with their dominance while decentralized platforms are still lacking support.
Don't know when things will turn and the world will change.

r1s2g3

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I am alive but in hibernation.

As you can see the wall street journal (WSJ) said.

Quote

Up to 2.5 percent of prices for goods and services go to cover card fees

If 2.5% percent of goods prices go to cover the card fees then why these companies do not give discount on cash payment. Bitcoin can be good option as a payment but only problem I see which user in the store (or not in the store) will be entrusted with the private key by these corporations?

eternalgloom

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I'd say this is pretty great news, this gives merchants and customers even more incentive to switch over to cryptocurrency payments.
Businesses should really put this into the spotlight by giving discounts for payments with cryptocurrency.

They save on transaction fees and customers benefit from being able to buy at a discount. Win Win.

talkbitcoin

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All I know is that I know nothing.

Quote from: kelz1 on February 18, 2019, 02:42:52 AM

At the moment it is free to own and use a credit card if you pay the bills on time. Soon a well established company will allow bitcoin or litecoin transactions on card to compete with visa

the whole point of bitcoin is that you no longer need a centralized company to take control of your money and then allow you to use your own money (or not if they decided to block you!). in other words bitcoin does not need a card.

with that said bitcoin debit cards are already a similar thing!

kelz1

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At the moment it is free to own and use a credit card if you pay the bills on time. Soon a well established company will allow bitcoin or litecoin transactions on card to compete with visa

Pursuer

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Where is my ring of blades...

that is the centralized systems for you! they force anything they want on their users and the only thing their users can do is to complain but suck it up and continue being their slaves. this is why bitcoin and decentralization has been invented so that we don't have to remain their slaves and have that additional option of freedom if we choose to use it. that is also why we keep fighting to keep bitcoin decentralized because nobody wants to see it turned into another VISA,...

veleten

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not exactly bitcoin discussion related
but you got a point, huge corporations, especially monopolists like Mastercard and Visa
and yeah , i'm sure they are run by one and same group of people just trying to avoid monoplism accusations
can do whatever they want, raise fees, turn your processing off , even threaten to exclude countries from their systems
as it has been discussed in regards of Russia and sanctions against it
my hope that one day cryptocurrencies will mature enough and have an infrastructure to challenge the supremacy of Visa and Mastercard in transactions processing

buwaytress

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Quote from: BitHodler on February 16, 2019, 06:17:29 PM

Quote from: pixie85 on February 16, 2019, 05:41:35 PM

There's a lot you can do. One of those things is not using credit cards.

People living from paycheck to paycheck don't have much of an option but to keep using credit cards to fill up gaps during the month. Millions and millions of people are stuck in a life of debt.

Regarding the increase in fees, it's something I saw coming with how there hasn't been much competition in that part of the industry. Less competition and large overall market dominance allow you to do these things.

Switching to Bitcoin isn't a viable option currently with how the price keeps fluctuating. Stability and more global acceptance is needed to convince people to at least give Bitcoin a fair shot.

But still, with the aforementioned in mind, people still rely on debt, and Bitcoin isn't the right tool to help them improve their financial situation. You have to take care of the underlying problem before you can move on.

Unfortunately, yes, I have to agree here. I hate the very idea of credit (and the impossible fees levied on credit) but myself, when I had access to credit, was forced many times to use it, usually through credit cards.

Coming from my part of the world too, if buying or paying for something in a country halfway across the world where the euro or even dollar or pound means my max debit card payment wasn't even enough to buy a plane ticket, and there's no option to pay with wire, the only way to pay for some of these things conveniently is Visa/MC.

As problematic as credit is, it's also made some day to day things possible. And people literally have no choice if they want to continue life normally.

The system needs fixing first.

tbossmitche

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Seeing this post got me thinking. This really reinforces the reasoning behind financial institutions strongly kicking against blockchain technology and cryptocurrencies at large. The decentralized nature of the technology would not be able to feed their greed. You almost cannot expect better from centralized financial platforms as they simply portray the illusion that they truly care about their customers when all that concerns them is the size of their pockets. These type of institutions have grown to gain widespread popularity to the point where they believe people cannot do without. That is where the decentralized ecosystem comes in. But before the system is in full flow, we just have to make for with what we have.

aceptamosbitcoin

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Quote from: pooya87 on February 15, 2019, 11:07:00 PM

i want to raise a question regarding this, do you think it is a good thing for bitcoin?

them increasing fees they take from merchant to process their transactions means merchants have to increase their prices to cover the difference if they don't want to lose money or eat into their profit.

on the other hand using bitcoin doesn't have that fee. so if they get paid in bitcoin they can offer their goods at a "discount" and that can create incentive for people to make payment in bitcoin hence increasing adoption.

Not really.
Most of the population never used and will never use crypto of any kind. Even we, crypto users, usually are ending up with crypto - fiat conversion and paying with Visa/MC.
Nobody (big) retail will waste it times to make a special discounts for the tiny crypto population. Time is money.

sheenshane

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Quote from: Aura on February 17, 2019, 12:26:40 PM

I hope that more merchants start to realize that they are being ripped of by this duopoly. The lightning network could be a nice alternative. It provides instant transactions with negligible fees, meaning that merchants will have a 2.5% improvement on revenue. It will be very though to adopt this in our society but definitely not impossible. We need some multinational corporations to adopt it into their system and then the rest will follow.

Well, hopefully, it will happen. If we will let blockchain to wreck this duopoly then blockchain will be the best alternative for card networks.
I think they are trying to raise the fees because the government is also asking some for them since they already own the market because of the duopoly. Well, this is very interesting if blockchain will get inside the card network industry and improve the fintech of the world.

franky1

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do you know the funny part.

banks hold the money. but its VISA/Mastercard demanding banks pay more..
maybe banks should just swap out visa/mastercard for a different service provider.

in the end its all about chargeback scamming and the costs involved. however by linking a card to things like applepay,square, stripe,

EG (how things evolved)
bank (bank is liable for charges)
bank <> debit card (debit card is liable for charges)
bank <> debit card <> phone app service (app service is liable for charges)

thus applepay(+others) handle the chargebacks.. meaning visa/mastercard dont. meaning end bank dont. meaning its just going to push people to prefer to link to things like applepay. to avoid the visa/mastercard excess charge by avoiding making visa/mastrcard liable.

this is what visa/mastercard want anyways. to push the risk off their shoulders for those that use an app as the risk taker, making visa/mastercard. just a zero risk middle service(pure profit)

but
eventually applepay(+others) when they start becoming more of the defacto payment method of fiat, and start to see their exposure to chargeback scamming increase. they too will start increasing their fee's to counter their liabilities

Aura

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I hope that more merchants start to realize that they are being ripped of by this duopoly. The lightning network could be a nice alternative. It provides instant transactions with negligible fees, meaning that merchants will have a 2.5% improvement on revenue. It will be very though to adopt this in our society but definitely not impossible. We need some multinational corporations to adopt it into their system and then the rest will follow.

GreatOrchid

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Quote from: ?? on ??

This is exactly where cryptocurrencies should come in but we are still doing all we can to make sure the technology is fully accepted by the world. The decentralized nature of blockchain technology will ensure that no one manipulates prices for their personal gain.

Being decentralised the cryptocurrencies have a lot of benefits which can make them a best currency to bring into consideration but yet most of the governments would not make this happen. Our globe is centralised and making it decentralised is not that easy. To avoid the heavy charges with visa/mastercard, we should start adopting cryptocurrencies.

Teawhalee

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They already have the popularity and customer base all over the world. Its what people make use every day, minute and seconds. So because of this they can decide to do what they like at anytime. This is the disadvantage of centralized systems which give power to only the creators and owners. This is why there is need for decentralized systems to be adopted so that everyone can be free to do what they like at any point in time and also there won't be any manipulation or monopoly systems.

Topic: Visa and Mastercard decided to increase their Fees.And there is nothing y can do (Read 563 times)