The problem with answering this question is that on the consumer side you don't really make this choice. The businesses that you pay for things at make this choice.
Visa and Mastercard are payment networks. The businesses that accept them are renting access to those payment networks, because ultimately accepting those forms of payment helps them make more money.
There are other options for payment systems, but for you to use them requires that the business you want to buy something at accepts those options.
The fees are insane to me. I do think it's fine for there to be some fee, they do provide an infrastructure and keep it up to date, but current fees are just insane for what they're providing.
I'm not aware of how payments work in Brazil, but in Denmark we've had a debit card that everyone uses and every store accepts. It's completely free for consumers, and stores pay way less for Dankort transactions than for credit cards, so it's a win-win.
My point is, hardly anyone goes out of their way to use other payment options, and that's one reason why most businesses don't bother with them, so this is also a choice of the consumer. Of course there's also little incentive for the consumer not to bother, but that's kind of just the deal with catch 22 network effects, someone has to take the leap to using something else.
Basically the only option is Interac, but it only works inside Canada. If you want to use your Canadian debit card internationally, it's going to go through an American payment network like Cirrus, Maestro, or the Plus network (ie. MasterCard or Visa's network).
The payment options can expand, JCB was initially only available in the Japanese market and today there affiliated cards issued in Bahrain, Bangladesh, China, India, Indonesia, Korea, Laos, Philippines, Taiwan, Thailand and Vietnam.
Many canadian terminals here already accept them. They would be a great alternative.
Wero is experiencing massive growth in Europe where more and more banks are accepting them.
Isn't JBC acceptance in many countries through partnership agreements with US American Express or Discovery cards? Doesn't that make them the same as using Visa or Mastercard?
I checked and it seems like only JCB is only independently used in Japan without the partnerships. I wonder why not the skip the middlemen and do it themselves?
Amex and Discover do not act as sketchy as Visa and Mastercard so no they’re not the same.
In the US, JCB and UnionPay cards are processed on Discover infrastructure. I suspect it's a matter of instant broad acceptance, which is more appesling than trying to sign up 5 million new merchants.
Luigi says yes.
No scarcity
But unlimited demand?
The problem with answering this question is that on the consumer side you don't really make this choice. The businesses that you pay for things at make this choice.
Visa and Mastercard are payment networks. The businesses that accept them are renting access to those payment networks, because ultimately accepting those forms of payment helps them make more money.
There are other options for payment systems, but for you to use them requires that the business you want to buy something at accepts those options.
Ya
Highest profit margin in the whole S&P 500? Visa/MC duopoly, like 70%!
Long read
Meanwhile Brazil has a 0% solution. Real card fees shouldn’t be 3%, should be IDK like 0.1% or something
The fees are insane to me. I do think it's fine for there to be some fee, they do provide an infrastructure and keep it up to date, but current fees are just insane for what they're providing.
I'm not aware of how payments work in Brazil, but in Denmark we've had a debit card that everyone uses and every store accepts. It's completely free for consumers, and stores pay way less for Dankort transactions than for credit cards, so it's a win-win.
Some businesses offer more options though, and when they do you can choose to use those options.
Er, yes, that's my point? It's up to the business to make that choice.
My point is, hardly anyone goes out of their way to use other payment options, and that's one reason why most businesses don't bother with them, so this is also a choice of the consumer. Of course there's also little incentive for the consumer not to bother, but that's kind of just the deal with catch 22 network effects, someone has to take the leap to using something else.
Here in the U.S. at CVS pharmacy, I've seen Venmo option on their self check outs.
Cash for small physical payments. It's the most private payment system. There's no third party payment provider involved.
Seconded. Cash is simple and convenient, no app or phone necessary.
If you're in Canada, Interac is a Canadian grown company. Just use your debit card and skip the credit if you can.
There’s Interac/Wero/JCB
No Canadian bank or credit union offers JCB cards.
Basically the only option is Interac, but it only works inside Canada. If you want to use your Canadian debit card internationally, it's going to go through an American payment network like Cirrus, Maestro, or the Plus network (ie. MasterCard or Visa's network).
The payment options can expand, JCB was initially only available in the Japanese market and today there affiliated cards issued in Bahrain, Bangladesh, China, India, Indonesia, Korea, Laos, Philippines, Taiwan, Thailand and Vietnam.
Many canadian terminals here already accept them. They would be a great alternative.
Wero is experiencing massive growth in Europe where more and more banks are accepting them.
Nothing is set in stone.
Isn't JBC acceptance in many countries through partnership agreements with US American Express or Discovery cards? Doesn't that make them the same as using Visa or Mastercard?
I checked and it seems like only JCB is only independently used in Japan without the partnerships. I wonder why not the skip the middlemen and do it themselves?
Amex and Discover do not act as sketchy as Visa and Mastercard so no they’re not the same.
In the US, JCB and UnionPay cards are processed on Discover infrastructure. I suspect it's a matter of instant broad acceptance, which is more appesling than trying to sign up 5 million new merchants.
I don't have any experience with it myself, but GNU Taler sounds promising.
Cash. It's so much better for the smaller shops - any store you want to support you should use cash.
There are none that allows for practical day-to-day grocery purchases, and/or international travel. Someone please prove me wrong.
Amex is apparently the “little” guy I think? (I’d just linked this a second ago)
While they are smaller, they're worse for businesses as their fees are higher
In AU at least most places here will pass fees onto the cardholder as a surcharge. Very rare to find a business that eat the surcharge these days.
Edit: Larger businesses yeah they will eat it, I'm more speaking of smaller businesses.
Interesting, in Croatia I've seen only a handful of very small businesses do that, not a single chain of stores does that.
In India We use Rupay Card. Rupay Market share in india is more then 60%
Is Discover a good choice?
Not anymore since it was acquired by Capital One.