> Under terms being discussed, Visa and Mastercard would lower credit-card interchange fees, which are often between 2% and 2.5%, by an average of around a tenth of a percentage point over several years, the people said
Meanwhile interchange fees in places like EU and Australia are more like 0.3%
The Visa/Mastercard duopoly really needs to be broken up somehow.
I live in Asia where there is a cambrian explosion of QR-code based payment methods. At many shops you'll see a list of accepted payment methods like this[0], indicating a healthy amount of competition in payments.
>Meanwhile interchange fees in places like EU and Australia are more like 0.3%
Those places don't have the ruthless competition between card issuers and various rewards that occurs in the US. I was paid $1000 by Chase for opening a new card and doing the spend on it that I would have done anyway. I get 5% back on every purchase made at Amazon. I get 3% back for every food-related purchase. I get 2% back for every other purchase. I get rewards for my monthly rent payment. Etc., etc.
>I live in Asia where there is a cambrian explosion of QR-code based payment methods.
No American, used to having his Visa or Mastercard accepted at 99% and Amex accepted at 97% of places, would want to switch to constantly having to scan gigantic charts such as your example to see whether his card/payment method will work.
In other words, the US has the competition you spoke of, without the inconvenience.
QR Code base system is slow, have security risk and will not work without smartphone.
Proliferation of hundred of QR Code based payments system is not a good thing, you need one that works across all countries.
Outside Visa and Mastercard, we have Amex, Diner, JCB, even China has UnionPay, but unfortunately they are not as popular as a contender of the duopoly.
QR is not ideal but as long as Apple keeps such a tight leash on NFC payments, it's the only "open" option. It's ironic that by trying to keep NFC payments so secure, they've instead caused the wide proliferation of far less secure alternatives.
Physical card issuance is too high-friction for new entrants. It's much easier to attract new users with "just install our app" than "enter your home address and wait days for a card to arrive then put it in your wallet and remember to use it"
>Meanwhile interchange fees in places like EU and Australia are more like 0.3%
Those places don't have the ruthless competition between card issuers and various rewards that occurs in the US. I was paid $1000 by Chase for opening a new card and doing the spend on it that I would have done anyway. I get 5% back on every purchase made at Amazon. I get 3% back for every food-related purchase. I get 2% back for every other purchase. I get rewards for my monthly rent payment. Etc., etc.
>I live in Asia where there is a cambrian explosion of QR-code based payment methods.
No American, used to having his Visa or Mastercard accepted at 99.44% (and that's around the world, not just in the US) and Amex accepted at 97% of places, would want to switch to constantly having to scan gigantic charts such as your example to see whether his card/payment method will work.
In other words, the US has the competition, you spoke of without the inconvenience.
Meanwhile everywhere you pay with a credit card in Australia you have to pay an additional 1-2% because they can get away with it. It's a terrible example really.
Man, looking forward to the paying experience also being enshittified.
Actually with my card in Europe it's already happened: any payment purpotedly being done overseas (even if it's in the local currency) has some % surcharge. One time some pop-up store came to my town, and they brought a card machine from their store in France. Charged in my local currency, and my bank charged me more. Luckily I could call them with much annoyance and get it credited back.
From online chatter I've heard that paying for Netflix or some other foreign service induces this charge too.
Use Revolut for no exchange rate fees added while paying in foreign currencies; also with disposable virtual debit card numbers for extra security when payment gateways or websites do get compromised.
"Deal under discussion would lower credit-card interchange fees for merchants, but could make it harder for consumers to use rewards cards at the register"
Surprise! The consumer loses again! It's always somehow benefiting everyone but the consumer. Too much control, not enough regulation. People shouldn't be bilked out of funds by paying to use their own money. We are shouldn't be _forced_ to use these service companies for making payments.
> Under terms being discussed, Visa and Mastercard would lower credit-card interchange fees, which are often between 2% and 2.5%, by an average of around a tenth of a percentage point over several years, the people said
Meanwhile interchange fees in places like EU and Australia are more like 0.3%
The Visa/Mastercard duopoly really needs to be broken up somehow.
I live in Asia where there is a cambrian explosion of QR-code based payment methods. At many shops you'll see a list of accepted payment methods like this[0], indicating a healthy amount of competition in payments.
[0] https://corporate.fithouse.co.jp/wp/wp-content/uploads/2021/...
>Meanwhile interchange fees in places like EU and Australia are more like 0.3%
Those places don't have the ruthless competition between card issuers and various rewards that occurs in the US. I was paid $1000 by Chase for opening a new card and doing the spend on it that I would have done anyway. I get 5% back on every purchase made at Amazon. I get 3% back for every food-related purchase. I get 2% back for every other purchase. I get rewards for my monthly rent payment. Etc., etc.
>I live in Asia where there is a cambrian explosion of QR-code based payment methods.
No American, used to having his Visa or Mastercard accepted at 99% and Amex accepted at 97% of places, would want to switch to constantly having to scan gigantic charts such as your example to see whether his card/payment method will work.
In other words, the US has the competition you spoke of, without the inconvenience.
QR Code base system is slow, have security risk and will not work without smartphone.
Proliferation of hundred of QR Code based payments system is not a good thing, you need one that works across all countries.
Outside Visa and Mastercard, we have Amex, Diner, JCB, even China has UnionPay, but unfortunately they are not as popular as a contender of the duopoly.
QR is not ideal but as long as Apple keeps such a tight leash on NFC payments, it's the only "open" option. It's ironic that by trying to keep NFC payments so secure, they've instead caused the wide proliferation of far less secure alternatives.
Physical card issuance is too high-friction for new entrants. It's much easier to attract new users with "just install our app" than "enter your home address and wait days for a card to arrive then put it in your wallet and remember to use it"
>Meanwhile interchange fees in places like EU and Australia are more like 0.3%
Those places don't have the ruthless competition between card issuers and various rewards that occurs in the US. I was paid $1000 by Chase for opening a new card and doing the spend on it that I would have done anyway. I get 5% back on every purchase made at Amazon. I get 3% back for every food-related purchase. I get 2% back for every other purchase. I get rewards for my monthly rent payment. Etc., etc.
>I live in Asia where there is a cambrian explosion of QR-code based payment methods.
No American, used to having his Visa or Mastercard accepted at 99.44% (and that's around the world, not just in the US) and Amex accepted at 97% of places, would want to switch to constantly having to scan gigantic charts such as your example to see whether his card/payment method will work.
In other words, the US has the competition, you spoke of without the inconvenience.
Meanwhile everywhere you pay with a credit card in Australia you have to pay an additional 1-2% because they can get away with it. It's a terrible example really.
(just as an example: https://www.hilton.com/en/book/reservation/rooms/?ctyhocn=SY...)
"Hotel Message
Credit Card Fee
Credit Card payments relating to Australian hotels incur a merchant service fee of 2% in addition to the total amount payable."
Man, looking forward to the paying experience also being enshittified.
Actually with my card in Europe it's already happened: any payment purpotedly being done overseas (even if it's in the local currency) has some % surcharge. One time some pop-up store came to my town, and they brought a card machine from their store in France. Charged in my local currency, and my bank charged me more. Luckily I could call them with much annoyance and get it credited back.
From online chatter I've heard that paying for Netflix or some other foreign service induces this charge too.
Use Revolut for no exchange rate fees added while paying in foreign currencies; also with disposable virtual debit card numbers for extra security when payment gateways or websites do get compromised.
Sounds like a good time to check out Wise or other similar options. There's no reason to pay extra for something as essential as card payments.
Syndicated at MSN.
Archive sites returned a gripe about js and adblockers.
https://www.msn.com/en-us/money/companies/visa-and-mastercar...
"Deal under discussion would lower credit-card interchange fees for merchants, but could make it harder for consumers to use rewards cards at the register"
Surprise! The consumer loses again! It's always somehow benefiting everyone but the consumer. Too much control, not enough regulation. People shouldn't be bilked out of funds by paying to use their own money. We are shouldn't be _forced_ to use these service companies for making payments.
Credit card rewards are not good for consumers. Low fees are good for consumers.