Visa CEO Ready to Slap PayPal with Digital Wallet Fee
March 21, 2013 1:08 PM
comment(s) - last by
PayPal will undoubtedly pass new fees on to its customers
One thing every user of PayPal is certainly familiar with its fees. It now looks as though the company famous for its user fees will have the tables turned. Visa CEO Charlie Scharf recently suggested that the credit card company could impose a fee on digital wallet operators such as PayPal.
MasterCard has already announced it plans to charge a fee to digital wallet operators starting in June. Fears that other major credit card operators could start charging PayPal fees for transactions have hurt PayPal shares. PayPal currently pays standard credit card fees to Visa and MasterCard, as well as American Express. These fees are paid whenever a PayPal purchase is made with a credit card bearing one of the companies’ logos.
The new fees that are being considered are in addition to these standard credit card fees.
During the Barclays Emerging Payments Forum this week, Scharf said, "I think it is totally appropriate to do that."
PayPal has been making a big push into the retail market allowing users to pay for items in stores using their PayPal account. Some analysts believe that as a payment option in physical stores PayPal could be a threat to major credit card networks such as MasterCard, Visa, and American Express.
that it was reducing its fees in an effort to better compete with Amazon.com. While PayPal has yet to announce a fee increase, if PayPal begins getting charged more for transactions it would undoubtedly raise fees for customers.
This article is over a month old, voting and posting comments is disabled
RE: Why the double fees?
3/22/2013 5:46:58 AM
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?
3/23/2013 10:09:54 PM
Merchants don't pay for all fraud. They only pay if they didn't follow the right procedures in collecting the necessary information.
Credit card companies also pay for default. Sure, some of that is paid for through interest, but interest and fees are all part of their revenue stream.
"What would I do? I'd shut it down and give the money back to the shareholders." -- Michael Dell, after being asked what to do with Apple Computer in 1997
EBay Announces Lower Final Value Fees to Combat Amazon
March 20, 2013, 10:39 AM
Report: New UK Broadband Users Give Porn Filters the Shaft
July 23, 2014, 11:49 AM
Comcast Memo: Harassing Customers During Retention Calls Actually IS Our Policy
July 22, 2014, 5:19 PM
Aereo Now Claims It's a Cable Company, Reveals it Has Very Few Customers
July 22, 2014, 4:20 PM
Edward Snowden Presents Tech to Stop Government Spying
July 21, 2014, 12:00 PM
Verizon FiOS Network Upgrade Brings Symmetrical Upload/Download Speeds
July 21, 2014, 8:33 AM
Amazon Launches First Fire Phone TV Spot, Spends 30 Seconds Promoting Prime
July 18, 2014, 11:17 AM
Most Popular Articles
Microsoft Kills Entertainment Unit, May Shelve Flagship Lumia "McLaren"
July 18, 2014, 7:40 PM
JJ Abrams Unveils X-Wing Starfighter for New "Star Wars" Movie
July 21, 2014, 12:24 PM
Boeing 777 Malaysian Airlines Flight 17 Crashes in Ukraine
July 17, 2014, 1:00 PM
Toyota Scientist: Autonomous Vehicles May Lead to Increased Fuel Consumption, Pollution
July 18, 2014, 2:42 PM
Motorola Moto G Successor Reportedly Uncovered, Moto X Discounted by up to $75
July 21, 2014, 1:11 PM
Latest Blog Posts
Space Terrorism is a Looming Threat For the United States
Apr 23, 2014, 7:47 PM
Facebook Aims to Provide Internet to "Every Person in the World" with Drones, Satellites
Apr 1, 2014, 10:20 AM
Retail Mobile Sites Experience Outages in Light of Simplexity's Bankruptcy
Mar 14, 2014, 8:48 AM
Tesla vs. BMW: Who Has the Safer EV?
Feb 1, 2014, 2:56 PM
Justice Leaks Details of Next HTC One Two Flagship Phone
Dec 5, 2013, 4:04 PM
More Blog Posts
Copyright 2014 DailyTech LLC. -
Terms, Conditions & Privacy Information