From: Eric Murray <ericm@lne.com>
Date: Mon, 28 Sep 1998 21:55:17 +0800
To: lazlototh@hempseed.com
Subject: Re: Cypherpunks defeat?
In-Reply-To: <v04011701b235ed0a62c8@[199.125.99.14]>
Message-ID: <199809290256.TAA24503@slack.lne.com>
MIME-Version: 1.0
Content-Type: text/plain



Lazlo Toth writes:
> 
> On or about 11:49 PM +0100 9/28/98, Adam Back wrote:
> >You want to buy ecash tokens with plastic.  Ideally you want to be
> >able to buy ecash tokens with an ATM card because you don't want to
> >incur any withdrawal fee (ATM withdrawals incur no transaction fee the
> >UK, US may be different.)
> 
> In the case of my US bank it's the opposite:  ATM withdrawals, unless I use
> a machine owned by my bank, cost me US$1.50.  Credit card fees on the other
> hand are paid by the merchant, who is contractually bound NOT to pass them
> on to me.

Not directly as an added charge.  But they do indeed pass it on.
The card associations won't let them directly charge an added amount for
using a credit card, because that would remind consumers that they're
paying for the privlidge.. and that might discourage them from
using plastic.  But it's ok for the merchant to offer 'discounts' for
buyers who use cash instead of credit cards.  That 'discount'
is the real price of the goods with the credit-card surcharge
subtracted.  Often that's 3-4%, sometimes as low as 1.2%.

> >Buying ecash tokens with a credit card is going to result in the cash
> >advance minimum fee, plus unwanted (and typically double digit APR)
> >interest on the "advance".
> >
> >Debit cards are a bit cheaper, but still incur some fee (unless a bank
> >could be persuaded to waive it for this class of transaction).
> 
> My debit card functions as both ATM and credit card.  When given a choice I
> will always prefer to use it as a credit card, which costs me nothing.

It still costs you the credit fee, hidden inside the purchase price.
Visa and MasterCard don't have massive staffs and huge office
buildings because they're dumb.

-- 
Eric Murray          N*Able Technologies                    www.nabletech.com
(email:  ericm  at the sites lne.com or nabletech.com)     PGP keyid:E03F65E5