From: "Perry E. Metzger" <perry@piermont.com>
Date: Fri, 18 Aug 95 09:30:50 PDT
To: Lyle Seaman <lws+@transarc.com>
Subject: Re: SSL challenge -- broken !
In-Reply-To: <skB=0EKSMUw880aqY7@transarc.com>
Message-ID: <199508181629.MAA02496@frankenstein.piermont.com>
MIME-Version: 1.0
Content-Type: text/plain



Lyle Seaman writes:
> jordan@Heuristicrat.COM (Jordan Hayes) writes:
> > talking to the right people.  Fraud eats away a big chunk of revenue
> > and can quite significantly affect competitiveness in a market with
> > thin margins.
> 
> The credit card market has thin margins?  That's news to me.

Its true. The issuers often end up making most of their money for a
transaction on the fee and not on the two points off the top -- that
money ends up getting divvied up and lots of it disappears into fraud
costs and other similar places. The other big place they make their
money is on the interest they charge people who don't pay off their
balance every month, but for someone like me who does, they are
indeed earning a fairly small margin.

Perry