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Visa Considers Extending 'War on Cash' Business Incentives Outside US (cnbc.com)
Visa is hoping to extend its "war on cash" agenda to businesses in the U.K. after announcing new incentives for U.S. businesses to go cashless. From a report: The payment technology company revealed on Wednesday that it was launching a "cashless challenge" which would see 50 U.S. businesses receive $10,000 each to help them convert to a cashless payment model. It is now aiming to roll the model out to the U.K., though is yet to set a timeframe for the launch, a Visa spokesperson confirmed to CNBC Friday. Under the scheme, businesses in the U.S. are invited to submit plans outlining what going cashless might mean for them, their employees and their customers. Recipients of the award will then be required to use the lump sum to upgrade their point-of-sale systems so they are completely cashless. Any remaining money can be put towards marketing, the company said. "We're declaring a war on cash," Andy Gerlt, a spokesman for Visa, said in the announcement Wednesday.
Making sure we get a cut of everything you spend, and know what you spent it on.
Lovely
Wish I could skim a couple percent off every transaction too.
I'd be all for an alternative to cash as long as it was managed without transaction fees by the local government backed issuer of the currency. Time to nationalize Visa/Mastercard?
THIS NOTE IS LEGAL TENDER FOR ALL DEBTS, PUBLIC AND PRIVATE
Never understood how apartment and rent can be required to be non-cash payment.
Another issue is how do I pay my neighbor kid to mow my lawn with a credit card?
Another issue is that I simply may not want Visa, and via third party records, the government, know exactly what I'm spending on and how frequently. The phrase "None of your business" comes to mind if for no other reason that it is, after all, none of their damned business.
Necessity is the plea for every infringement of human freedom. It is the argument of tyrants; it is the creed of slaves.
Whats funny is they mention how fast it is to pay with your card, when in reality, especially since the chip readers... It takes almost twice as long for a transaction. and about 3-4x as long as a cash transaction.. At least from what I've seen at local stores and gas stations here in Las Vegas.
Good luck getting the government to try to fix this - they're the ones which made it possible. Visa/Mastercard lobbied for and got laws passed which made it illegal for merchants to add a surcharge if you pay with a credit card, to help them recoup the credit card processing fee. (That's why you see some places advertising a cash discount - it's a loophole in the law.)
There would've been a lot more downward pressure on the 2% processing fee if merchants had been allowed to directly pass the fee on to customers. People would've preferred to pay with cash until credit card companies were able to lower the cost to something more reasonable, like a half or quarter percent. Card networks which had higher fees (e.g. Amex) would've had a tougher time than card networks with lower fees (e.g. Discover). But thanks to (corrupt) government regulation, competition to lower processing prices was eliminated, and we're all saddled with what's effectively a 2% sales tax to a private company. Even if you're paying with cash, you're paying the tax as the cash purchases basically subsidize the merchants fees for credit card purchases (since you pay the same amount for cash or credit in most stores).
And no the fee is not for protection against fraud. The merchant pays for fraud, not the credit card company. When you spot an unauthorized charge on you bill and request a chargeback, the card processing company issues a notice to the merchant asking for proof the purchase was valid. Usually this is the signature on the credit card receipt, but for online or automated transactions this can be things like the billing address or phone number (that's why gas station pumps ask you for your zip code). If the signature or other information the merchant submits doesn't match, the transaction is determined to be fraudulent, and the processing company simply deducts the amount of the charge from the merchant's payment. The merchant is out the money and the merchandise. The only expenses the card companies have to pay for are infrastructure, equipment, and staff. With the modern Internet and computers, this is probably on the order of pennies per transaction.
There are real costs to cash too, though. Just off the top of my head:
- Having to physically gather it up and take it to the bank
- Potential for theft, either during the transfer or just in the shop
- Higher insurance premiums to cover the potential cost of robberies
Really, for a small business, it probably comes down to who your customers are. If they are younger and/or more affluent, getting rid of cash may make sense.
Surcharges are illegal, but cash discounts are not. Some merchant agreements try to ban them. But even then, make it a freebee after X dollars cash deal.
Business just has to have the balls to raise their middle fingers to VISA. I've seen more than a few that are ATM and cash only. I bet that costs them less than 2% in sales.
The elephant in the room is Apple/Google pay. VISA _should_ be worried. After 40+ years of VISA/MC's 'we're the only game in town' attitude, everybody should be looking for alternatives.
John McAfee 'It was like that time I hired that Bangkok prostitute; to do my taxes, while I fucked my accountant'
...Visa extends war on the poor.
In my opinion, not accepting legal tender in favor of utilizing non-government tender, in this case a Visa card, should be illegal. I have relatives who don't have a credit card or even a checking account because their credit is crap. It's their fault but shutting them out by not accepting cash is ridiculous.
No, YOU are a weak piece of shit, giving in to cowardice and giving up, accepting credit card company dick up your ass. PAY WITH CASH EVERYWHERE. Fuck the police, fuck the credit card companies sideways with a rusty chainsaw. Your privacy and freedom are worth fighting for!
Sure, companies are selling data about you and sure, they know everything you purchase and where and when you purchase it.
Part of the problem with the debate is when people say things like that. Perhaps you don't realise it, but what you wrote there simply isn't true.
For example, I have businesses, and we receive payments from people via various banks or online services or whatever. None of those financial services has any information about what those people were paying us for, only the details of the payment itself.
In most cases, financial services we deal with wanted to know something about what line of business we were in before agreeing to work with us. That means there is some genuine risk if you're talking about people buying something from a vendor known for supplying potentially sensitive or controversial products or service.
However, there's no magic database that tells anyone, even the card companies, exactly what you buy. The most extensive analysis is probably done by the big stores with their loyalty card programmes, and they really are looking at everything you purchase and doing all kinds of predictions about what might incentivize you to spend more with them in the future. However, participation in those programmes is typically optional, and the benefits tend to be so small that most people wouldn't really lose out if they just said no when they were offered a chance to sign up.
If you disagree, post your argument. (-1, Overrated) isn't your personal censorship tool for views you don't like.
when they can't make cards work. What makes cards work for a business is two things:
1. Tacking on added value products/services. e.g. getting somebody to buy a $20 hdmi cable with their new TV. Folks are more likely to buy these things when they're not handing over cash.
2. Leveraging the fact that you're essentially giving out a loan with little to no risk. Yeah, the customer can dispute the charge, but most don't. The majority of credit card losses happen when the whole economy craps the bed and folks go bankrupt. If you're a business it's nice not having to deal with that. Let Visa clean up that mess and try to collect the money.
Credit Cards are mostly a raw deal for necessities. It's why you can't usually pay for a Car Loan, Mortgage or Rent with a card. We've already got a 'cashless' alternative. It's called ACH. My Car Loan auto drafts every month.
Basically, if you're a retail or service business complaining about taking cards you're doing it wrong.
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Luckily I still have cash to eat this week...
Only eat the bills. The change is terrible for your teeth.
He's getting rather old, but he's a good mouse.