Comment FYI: Both Bank Associations (Score 1) 715
Every time I see Visa/Mastercard news I and dumbfounded at the ignorance some smart people have regarding payment networks.
1. visa and Mastercard are bank associations.
That means a bank can join either one. Banks can and do belong to both associations. Banks get revenue a variety of ways when they issue Visa/Mastercard products. That's why they join!
2. Payment services inflate the cost of all goods at a retailer who accepts cards and cash.
The consequence is the cost of all goods is inflated. Anyone familiar with the merchant end of accepting these payment types can fill you in.
3. The associations have a duopoly on payment services in the U.S.
Resulting economic activity is constrained by the duopoly and wealth is destroyed. Look up the Visa and Mastercard anti-trust rulings won by Discover and Amex.
4. Paypal is not a bank and does not have a bank charter. Not even a 'commercial' bank charter. Paypal is its own 'closed' payment system.
You too can start a payment system. So long as you do not cut into Visa/Mastercard's business, you will not be bothered.