Bitcoin Could See Credit Card Companies Sweating, Says Bank Report
A recently published bank report by Spanish banking giant Banco Santander is foreseeing a future wherein – if bitcoin is adopted in the mainstream – the fundamental business model of credit and debit card companies could be uprooted. A research report [PDF] was published earlier this week by Santander Investment Securities (SIS), a subsidiary owned by the Spanish banking group. The report and its findings came after an August meeting which saw SIS researchers, local investors and most notably, Mercado Bitcoin – the largest bitcoin brokerage in Latin America. The bank-sanctioned report,....
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Under the terms of a $7.2 billion class action settlement that a US federal judge approved in November, starting this Sunday, merchants will gain the legal right to charge credit card-paying customers extra to make up for their processing fees. Currently, every time a customer makes a payment with a credit card, merchants are charged about $0.25 + 2.9% for the transaction, and for many years, major credit card companies have included a term in their merchant agreements forbidding merchants from using surcharges or discounts to encourage their customers to pay with cash instead. The result....
MAX and Isracard, two Israel-based credit card companies, will offer separate credit cards that provide bitcoin cashback and allow the purchase of bitcoin.
ACI Worldwide, a Florida-based payment system firm, has released a study which revealed that more than one third of Singaporeans have faced card fraud since 2014. The statistic demonstrates the seriousness of the underlying vulnerabilities discovered in the security systems of credit card operators and credit card networks. Technically, when a credit card purchase is made either online or at a physical location, the private key of the credit card is retrieved by the processing party. That means, the business or person receiving the credit card payment holds the responsibility of storing....
Prepaid credit cards are not new. However, a prepaid credit card that can be funded with bitcoins is. The BitcoinCard is a credit card that can be funded via BTC. Don't get too excited though, as this card does not let you transmit bitcoin via the card. Despite the website's UK top level domain, the company informed us that the card primarily holds Euros. When we contacted The Bitcoin Company, who are offering this card, a representative told us: "The card works as a normal prepaid credit card. The difference is users can buy it with bitcoins, and fund it with bitcoins." It's not clearly....
One of the biggest problems for bitcoin exchanges and their customers is often making the exchange quick and easy. Exchanges like Canadian firm Virtex made the decision a long time ago not to accept credit cards. Their biggest concern? Fraud, in the form of chargebacks. In a credit card chargeback, a credit-card paying customer asks the issuing bank (the bank that gave them the card) to reverse a transaction made with a merchant. This can happen for a variety of legitimate reasons. A merchant may not have delivered the promised goods or service, or it may have been faulty. In some cases, a....