

PayPal will undoubtedly pass new fees on to its customers






Source: Reuters

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RE: Why the double fees?
By Solandri on 3/22/2013 5:46:58 AM , Rating: 2
Visa, etc., are already getting fees. Why the doubling up?

Because they can. To paraphrase one of my favorite books, the easiest way to make money is to move money around for other people, and skim a little off the top for yourself.

Visa et al know they have a good racket going. (Yes it's a racket. There's no way transmitting a few bytes of data to update a database costs ~2% of the money being exchanged. And don't get started about paying for fraud - the merchants bear the cost of fraud, not the credit card companies.) They're not going to stand for someone else trying to get in on it. It could lead to actual competition which could decrease their margins to something closer to the actual cost.

RE: Why the double fees?



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