Comments on: How to regulate payments http://blogs.reuters.com/felix-salmon/2011/08/23/how-to-regulate-payments/ A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: CrazyMajority http://blogs.reuters.com/felix-salmon/2011/08/23/how-to-regulate-payments/comment-page-1/#comment-30271 Tue, 30 Aug 2011 16:30:59 +0000 http://blogs.reuters.com/felix-salmon/?p=9534#comment-30271 I think the core issue is the increasing use of rewards cards. Those rewards are paid for with much higher interchange fees which of course are paid for by the merchants. Using interchange fees to pay for basic infrastructure, fraud, the initial float, and a reasonable profit margin makes sense to me. Using them to pay for rewards programs is hard to justify. My understanding is that merchants have to accept all cards, so their prices must reflect the higher interchange fees for rewards cards. Because rewards cards are generally given out to higher income consumers, we have a situation where the poor subsidize rewards for the rich. I’m a capitalist, but I think the current system is flawed.

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By: lesle http://blogs.reuters.com/felix-salmon/2011/08/23/how-to-regulate-payments/comment-page-1/#comment-30247 Mon, 29 Aug 2011 23:36:34 +0000 http://blogs.reuters.com/felix-salmon/?p=9534#comment-30247 “Social Security Death Index” for free at

http://ssdi.rootsweb.ancestry.com/cgi-bi n/ssdi.cgi

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By: okaram http://blogs.reuters.com/felix-salmon/2011/08/23/how-to-regulate-payments/comment-page-1/#comment-30235 Mon, 29 Aug 2011 16:35:14 +0000 http://blogs.reuters.com/felix-salmon/?p=9534#comment-30235 Actually, following your link, the SSA charges $995/yr per *named USER*, not per look-up; this allows an unlimited number of look-ups.

Also, it seems the government HAS a DB of revoked/valid licenses; it just doesn’t make it available to private companies due to privacy concerns, which makes a lot of sense to me.

Are you really sure you want to overhaul all these rules based on one paper ? :)

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By: billyjoerob http://blogs.reuters.com/felix-salmon/2011/08/23/how-to-regulate-payments/comment-page-1/#comment-30225 Mon, 29 Aug 2011 00:03:24 +0000 http://blogs.reuters.com/felix-salmon/?p=9534#comment-30225 So despite the fact that the payments industry is very innovative, and innovation is likely to continue, and there are eager innovators already innovating, the innovation needs to stop right now lest any card user pay an extra 23c. Well, the card users don’t pay it, only the people paying cash, and not even them really, because it’s not so easy to figure out where the incidence actually falls, and the card users seem pretty happy with their rewards and nobody’s really complained but a few gas stations that have lousy margins with or without card fees, but anyway who cares, just regulate the thing to death, destroy innovation, and institute a MA/VISA/AMEX monopoly in perpetuity, like they did to the tobacco industry.

Because card fees kill, apparently.

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By: y2kurtus http://blogs.reuters.com/felix-salmon/2011/08/23/how-to-regulate-payments/comment-page-1/#comment-29984 Wed, 24 Aug 2011 02:28:14 +0000 http://blogs.reuters.com/felix-salmon/?p=9534#comment-29984 Electronic Payments will always be heavily regulated by goverments. Almost into the ground. In the U.S. federal revenue is raised mostly on the honor system. I can put my fingers on the exact amounts but I belive far more money is sent to the IRS actively by tax payers via quarterly estimates than is sent in passively by withheld from payroll checks.

U.S. Tax collection is basically an honor system with only the most blatent tax cheats getting caught audited, fined, and for the real dumb ones jailed.

If electronic payments outside the banking system were easy it would immediatly lead to huge problems. Ask any truely successful criminal the hardest part about managing an ongoing racket and it’s almost always physical cash management. The colombians have an easier time getting the coke in than they do the cash out.

A million bucks in $100’s requires a rather large breifcase… and try using a $100 bill in my state (Maine)… I mean the’re basically not legal tender at this point. The feds are killing themselves trying to crack down on criminals using pre-paid debit cards… and in most cases those still need to be physically transported which is a pain.

If you make it truely easy to transfer funds electronically without using banks or western union type agents as a closely monitored interface then you will see an explosion of black market activity and tax evasion.

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By: FifthDecade http://blogs.reuters.com/felix-salmon/2011/08/23/how-to-regulate-payments/comment-page-1/#comment-29982 Wed, 24 Aug 2011 00:47:30 +0000 http://blogs.reuters.com/felix-salmon/?p=9534#comment-29982 What no story about the S&P CEO being forced out (typical shoot the messenger story), or the downgrade by Moody’s of Japanese debt?

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By: aarongreenspan http://blogs.reuters.com/felix-salmon/2011/08/23/how-to-regulate-payments/comment-page-1/#comment-29979 Tue, 23 Aug 2011 23:45:52 +0000 http://blogs.reuters.com/felix-salmon/?p=9534#comment-29979 I don’t argue that the entire regulatory mess is purposely built by incumbents–just the California one in particular, though I have a feeling New York isn’t much different. See ftp://leginfo.public.ca.gov/pub/09-10/bi ll/asm/ab_2751-2800/ab_2789_cfa_20100628 _154447_sen_comm.html. If you can find contact information for The Money Services Roundtable, let me know!

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By: FelixSalmon http://blogs.reuters.com/felix-salmon/2011/08/23/how-to-regulate-payments/comment-page-1/#comment-29978 Tue, 23 Aug 2011 23:33:39 +0000 http://blogs.reuters.com/felix-salmon/?p=9534#comment-29978 @right: oops! Thanks, I’m showing my age…

@vv111y, no, I think that’s a bit of a stretch by Greenspan.

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By: vv111y http://blogs.reuters.com/felix-salmon/2011/08/23/how-to-regulate-payments/comment-page-1/#comment-29974 Tue, 23 Aug 2011 22:27:35 +0000 http://blogs.reuters.com/felix-salmon/?p=9534#comment-29974 Is there any evidence that this regulatory mess is a purposely built barrier to entry by incumbents? I’m genuinely asking.

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By: MSM-Reuters http://blogs.reuters.com/felix-salmon/2011/08/23/how-to-regulate-payments/comment-page-1/#comment-29973 Tue, 23 Aug 2011 22:26:56 +0000 http://blogs.reuters.com/felix-salmon/?p=9534#comment-29973 The US Post office is licensed in all states, and reasonably reliable, and looking for business.

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