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 do people use paypal?
3/22/2013 9:37:20 AM
better to have Paypal play middlemen on these small sites, than to have to enter your visa details on each of these small resellers online.
RE: why do people use paypal?
3/22/2013 12:00:35 PM
You are wrong * infinity.
Pay on any old website with your credit. Worst thing that happens is they hijack your card and go nuts charging things. You call the CC company, they cancel the card and all the charges, send you a new card with a new number, and it's over.
Do business with PayPal? For no apparent reason, they'll stop giving you access to your account, so you can't get to the funds you have in there. They'll steal money from your account to give to any eBay buyers you may have done business with when they fraudulently file claims against you. They might even ban you for life without even giving you any excuse at all.
In the end, you have *awesome* consumer protections through your credit card. You have none through PayPal - especially in the interest of protection from PayPal themselves.
RE: why do people use paypal?
3/25/2013 12:58:56 AM
I've dealt with card fraud before, some time ago. It's frustrating, especially if it's your bank card. It's even worse if you go to use your card one day and it doesn't work (awkward!) because your account has been cleaned out! You have to waste your time dealing with the fraud department, going over all the bad charges. There's paperwork, too. Then, you're cardless for a while, and your replacement is a different number. So you have to update info for all the services that you DO trust to rely on your card for payments/transactions.
The process is not particularly fun. For someone to simply say "Oh it's fine if they go nuts charging things, you can just cancel the card and get your funds returned!" this says to me that you've never had to do this. Plus the issue isn't only that these random companies are unreliable and overcharge you. Another problem is that they don't have good security (well neither does Sony), and if you give every Tom, Dick, and Harry your info, sooner or later it'll fall into the wrong hands.
For buyers Paypal is generally pretty decent. I don't think Visa would better protect me from a bad seller. Of course, if you think it will help your argument, keep on using the seller angle. I'm sure the burnt buyers and other victims of fraud are sure to care.
"There is a single light of science, and to brighten it anywhere is to brighten it everywhere." -- Isaac Asimov
EBay Announces Lower Final Value Fees to Combat Amazon
March 20, 2013, 10:39 AM
Record Labels Sue Pandora for Royalties on Songs Made Pre-1972
April 21, 2014, 9:13 AM
Google Knocked by Analysts, But Shows Strokes of Brilliance in Q1 2014
April 18, 2014, 2:33 PM
Google Street View and reCAPTCHA Get Smarter with New Algorithm
April 17, 2014, 9:02 AM
Mt. Gox CEO Refuses to Come to the U.S. in Financial Crimes Probe
April 16, 2014, 3:50 PM
Mark Zuckerberg: Facebook Home Reception Slower than Expected, Social Graph Will Pick Up
April 16, 2014, 2:00 PM
FBI's Facial Recognition Database to Have 52 Million Criminal, Non-Criminal Photos by 2015
April 15, 2014, 2:56 PM
Most Popular Articles
A Bug's Life: Female Cave Bugs Have Penises, Penetrate Males for Three Days
April 17, 2014, 7:20 PM
Quick Note: Toyota Attempts to Erase “Boring” Image with ’15 Camry SE Hybrid
April 16, 2014, 11:36 AM
HTC Hires Former Samsung Marketing Chief Who Developed "Galaxy" Brand
April 18, 2014, 6:00 PM
Project Moonshine: Google's Plan to Flatten Android App Icons Leaks
April 16, 2014, 1:46 PM
Microsoft Announces the First Steps in Its "Universal Apps" Program
April 15, 2014, 7:59 PM
Latest Blog Posts
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
Global Cyber Espionage Concerns Reveal Growing Cyber Armies
Nov 29, 2013, 11:04 AM
More Blog Posts
Copyright 2014 DailyTech LLC. -
Terms, Conditions & Privacy Information