VISA Debit costs rise %,100% over laser - Blog post from Ronan O'Brien

Discussion in 'E-Commerce' started by link8r, Aug 12, 2011.

  1. link8r

    link8r New Member

    I personally think that VISA/MasterCard as a basis for conducting internet commerce is way overpriced. Do we really want to hand over this much cash to two banks?

    http://www.ronanobrien.info/laser-to-debit-card-fee-increase/

    I
    also fee that the iia are asleep pandering to internal industry issues/promotion instead of looking at the real issues challenging a wider part of the Irish internet industry apart from ourselves - the actual businsess. While many argue that the iia is open to information/support/training/membership to business people (distinct from "web" vendors, which pretty much includes most of us here, myself included) - you have to admit, there is very little from the business-only side in the iia.
     
  2. mneylon

    mneylon Administrator Staff Member

    Visa / Mastercard is cheaper than Amex
     
  3. link8r

    link8r New Member

    probably - because there's no other bank income from Amex?

    But Visa Debit is much worse than Laser.
     
  4. mneylon

    mneylon Administrator Staff Member

    No - it was a statement of fact :)


    How and for whom?
     
  5. link8r

    link8r New Member

    Yes it was. And I didn't mean probably to suggest possibly!



    I'll clarify - It seems that it's worse for merchants and adds a greater cost for transactions over Laser.


    Anecdotally, my mother says she can't get cashback from stores - too many say "oh, no we can't give cashback on VISA [or "those"]"
     
  6. Satanta

    Satanta New Member

    While technically the impact is on the retailer, the impact it has there means it goes on to impact on the consumer and potentially the economy as a whole.

    When viewed in comparison to the fixed costs available in the UK (12p vs. 30c to 55c depending on the merchant banking provider), it'll hit Irish businesses in terms of competitiveness in the export market. A major issue that is disconcerting. Looking at the rough figures Colm Lyon did up for 2010, linked from within Ronan's comment section, he estimated an increase in fees from ~€1.3m to ~€24m for what is essentially the same function. This will expand greatly in 2011 as the increase in Visa Debit adoption increases dramatically (even more so when BoI introduce VD later in the year).

    I wasn't aware of any issue with cash back on VD cards, that does seem unusual and a little unexpected. I wonder if that's a store specific issue or if it will be widespread?
     
  7. penny5577

    penny5577 New Member

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