XPost: rec.arts.sf.written, rec.arts.books   
   From: robban@clubtelco.com   
      
   On 6/09/13 6:03 AM, Gutless Umbrella Carrying Sissy wrote:   
   > The Horny Goat  wrote in   
   > news:qrhv19p5eqiui6vffuqbeags9i8mobor1h@4ax.com:   
   >   
   >> On Tue, 27 Aug 2013 09:09:38 -0700, Gutless Umbrella Carrying   
   >> Sissy  wrote:   
   >>   
   >>> The merchant services divisions were never in trouble to begin   
   >>> with. They're *always* profitable. They take a cut when you   
   >>> spend, they take a cut when you get a refund, they take a cut   
   >>> when you challenge a bogus transaction *plus* they charge the   
   >>> merchant a chargeback fee (even if the merchant is determined to   
   >>> be blameless). The card issuer will do their best to screw the   
   >>> consumer, but the merchant service *will* screw the merchant out   
   >>> of their eye teeth. There's good reasons why regulations on   
   >>> merchant services have tightened up in recent years (to the tune   
   >>> of costing them billions if free money).   
   >>   
   >> Credit card companies essentially embody the worst monopolistic   
   >> / oligopolistic practices of classical economics.   
   >   
   > Other than the amount of competition between them, sure.   
   >>   
   >> There's no particular reason they should have to have a   
   >> percentage of every transaction a merchant does - a simple   
   >> transaction fee for service should be enough. But they wield   
   >> considerable power and there are few merchants that have loyal   
   >> enough customers that would accept breaking loose from them.   
   >   
   > Welcome to capitalism, and what the market will bear. Without the   
   > kind of "power," credit cards wouldn't be much of a factor in the   
   > market.   
   >>   
   >> Since a merchant has to cover ALL costs this means society as a   
   >> whole pays for this quasi-monopoly   
   >>   
   > In fact, no, the merchant does not have to cover all costs. If the   
   > merchant follows the rules, they are protected from fraud.   
   > Ultimately, of course, the consumer pays all costs for everything.   
   > Since it isn't even theoretically possible for anyoen else to do   
   > so.   
      
   If you are using a card, then in Australia at least, the bank bears the   
   cost so long as you report it quickly enough.   
   --   
   Robert Bannister   
      
   --- SoupGate-Win32 v1.05   
    * Origin: you cannot sedate... all the things you hate (1:229/2)