From: John Young <jya@pipeline.com>
To: cypherpunks@toad.com
Message Hash: cbe1a038edab947b5708bc43b106f6be3c97042d9d783765fc4d88e0916b5edc
Message ID: <199508171545.LAA10941@pipe1.nyc.pipeline.com>
Reply To: N/A
UTC Datetime: 1995-08-17 15:45:59 UTC
Raw Date: Thu, 17 Aug 95 08:45:59 PDT
From: John Young <jya@pipeline.com>
Date: Thu, 17 Aug 95 08:45:59 PDT
To: cypherpunks@toad.com
Subject: RUB_han
Message-ID: <199508171545.LAA10941@pipe1.nyc.pipeline.com>
MIME-Version: 1.0
Content-Type: text/plain
Hurray for PRZ and D.FR and the yet-untargeted DCF
unconspiratorily, merrily, incites.
Now, sordid lucre biz:
8-17-95. NYPaper:
"A mystery bankers love: How do credit cards stay so
profitable?"
The profit on credit card operations is almost five
times the overall profit rate in banking. Last year,
eight of the top nine commercial banks ranked by return
on assets specialized in credit card loans. In a free
market, this isn't supposed to happen. If the business
is immensely profitable -- and that profitability is no
secret -- why hasn't wideopen competition forced banks,
at best, to offer lower interest rates to consumers or,
at worst, at least to dissipate their excess profits in
ever greater spending for promotion? This is not a
pretty picture of free markets at work.
"Mastercard Joins Banks to Plan Card That Works Like Cash."
[This amplifies a bit the anonymous post on SmartCash.]
The venture, called Smartcash, plans to issue what are
called "stored value" or "electronic purse" cards.
Customers would be able to load money onto these cards,
say $20 or $50, at automated teller machines or by
calling their banks with specially equipped telephones.
"We're in a state of chaos," said Stephan Seidman, the
editor of Smart Card Monthly, a trade publication. "A
year ago banks said there was no good reason to issue
smart cards. Now they are in a headlong plunge to get
something out fast." The result, he said, is shifting
and competing alliances that may lead to incompatible
systems and confusion for consumers.
Deux: RUB_han (about 10kb)
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