The Perverse Competition of Late Stage Capitalism

[jesse_the_k]

Debit cards are very handy. In the US, when you use a debit card you can choose to sign for it or enter a four-digit PIN. In either case, the person you are paying must pay a percentage to the debit card company. Turns out that accepting a signature costs the seller more than accepting the PIN. VISA, however, has waged a years-long campaign to ensure they get more money, through various nefarious plans detailed in this article from The New York Times

 begin quote  “A dollar is no longer a dollar in this country,” said Mallory Duncan, senior vice president of the National Retail Federation, a trade association. “It’s a Visa dollar. It’s only worth 99 cents because they take a piece of every one.” quote ends 

Yet another way that bricks-and-mortar stores are on an unequal footing with internet merchants.

Why do I care? Because the businesses in my town hire my friends and neighbors and pay local taxes for local services.

That is all.

Comments

[were_duck]

Yes, it is quite nefarious! I wish people would stop and consider just who is paying for their free airplane miles or other credit card gimmicks. It's the merchants! At my shop, at least, debit is a flat fee while credit is a percentage of the sale--so for amounts under $13, credit is actually better than debit for us, but over $13 debit is better. I think this is probably why some places offer a cash back option on debit? Anyhow! It is incredible how much credit costs brick-and-mortar stores.

[sasha_feather]

Wow! :(

[fullygoldy]

Yet another way that bricks-and-mortar stores are on an unequal footing with internet merchants.

Wait, wouldn't this policy make it better to shop and use debit at your local store? I've never been able to enter my PIN to make an online purchase. Shouldn't we be signal boosting this so that people will choose the debit option *only* with our local purveyors? Unfortunately, my credit union charges me for each debit transaction after 5 in a month, so I've made it my policy to only do credit transactions. But, for local businesses, I'd make the switch.

[jesse_the_k]

Hmm, I may be interpreting this wrong, but ...

How large a slice VISA (or MasterCard, or Discover...) takes from a purchase depends on a) whether you're using debit or credit and b) what your total sales are.

As were_duck points out, the tipping point between credit and debit charges for her store is $13; but in either case, the seller must pay a third party for the privilege of taking your money.

Moral: pay cash. Ooops, we've already tipped over into the cashless society.

(But you probably understand this stuff better than I do, as you brain is sharp from hurling numbers around all day.)
You can't get ahead, you can't get even, and you can't get out of the game.

[the_future_modernes]

oh lawd. i had no idea!