From: frantz@netcom.com (Bill Frantz)
Date: Sat, 18 Nov 1995 03:34:04 +0800
To: Arley Carter <ac@hawk.twinds.com>
Subject: Re: credit card conventional wisdom
Message-ID: <199511171905.LAA27110@netcom4.netcom.com>
MIME-Version: 1.0
Content-Type: text/plain


At 15:22 11/16/95 -0500, Arley Carter wrote:
>3.  I'm getting tired of seeing posts this list about what is more dangerous
>cyberspace or restaurantspace.  Let's focus on the real mechanics of how
>the ground rules of credit card clearing will operate in cyberspace. The
>credit card consortiums can advance the cause of electronic commerce by
>stating in unambigous terms what their views are of these ground rules.
>Developers, cardholders and merchants can then make a judgement on whether
>those risks are acceptable to each party respectively.  

I agree.  I doubt we can completely eliminate the risk by technical fixes. 
I do think we may be able to reduce the risk below what it is in
non-cyberspace commerce.  (e.g. phone orders and in-person card
presentation).  If we can do that, and a significant part of commerce moves
to cyberspace, then we can see a reduction in the fraud premium that we all
pay (no matter who "offically" pays for it).

While cash-like instruments will be an important part of cyberspace, I
think that credit arangements may be more important.  In non-cyberspace
commerce, almost all big-ticket purchases are made with time-payment
credit.  Whether the total of the "candy bar" transactions will exceed the
total to the big-ticket transactions, I don't know.  Certainly if we are
dealing with tangable goods, shipping costs encourage large orders.

Bill


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Bill Frantz                   Periwinkle  --  Computer Consulting
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