Institutional roles in issuing and processing credit cards | Khan Academy
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- Опубліковано 27 вер 2013
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The institutions involved in processing your credit card and how they relate to each other. Created by Sal Khan.
Finance and capital markets on Khan Academy: Most of us have borrowed to buy something. Credit cards, in particular, can be quite convenient (but dangerous if not used in moderation). This tutorial explains credit card interest, how credit card companies make money and a far more silly way of borrowing money called "payday" loans.
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That was awesome. Explains why paying for gas is more expensive when using credit or debit and why there is always a minimum purchase at grocery stores when not using cash.
Sal, you're a revolutionary figure. Love you and your work.
Sal you are a hero.
Sweet Mother Of Uploads
Thank you thank you thank you.
bank rakes in FRN from both sides of the transaction, they charge you interest and they collect the transaction fee..smh, you gotta love them banks
what software do you use to get the neon?
Great explanation !
SAL you are amazing.
this helped me understand central banking kinda.
duck Hope
Very interesting. Would love to see the scenario with coupon usage.
The scenario wouldn't change at all. The store would just charge less to your credit card but the rest of the process would be the same.
so what happens to the 2$ the grocery store is out of?...it's highly unlikely that they would be willing to lose profits or sell goods for less than market value. Do they make it up by charging the banks?...acquirer or issuer??
Grocery Store pays 2$(as a charge) to acquirer because are using their services. They might lose some of their profits but if they accept credit cards that attracts more customers which increases revenues.
it has proven to be true generally, that people who buy using credit cards are more likely to make larger purchases and buy impulsively. If someone does not have a credit card then they are limited to whatever cash they are carrying at the time. The amount of planning that goes into having that money with you means that the customer is more likely to be thinking about what they are buying. With a credit card they grab what they want and worry about the bill at the end of the month (in the best case anyway). So businesses have found that the increase in purchases after the credit network takes its cut is more then they are paying to the credit card companies. Though that obviously depends on the business. For small companies the reverse is sometimes true; they loose more then they gain from the credit card. Places like that often have signs that say "No credit card purchases for less then $10.00" or $20.00 or wherever they think their break even point is
Many thanks, I've been looking for "best business credit card bad credit" for a while now, and I think this has helped. Ever heard of - Panriel Credit Cachepot - (do a google search ) ? Ive heard some unbelievable things about it and my neighbour got amazing success with it.
And then you still have to pay the full 100 back to bank A so even if you don’t pay any interest they end up positive $3.70. Not bad!
I don't understand I guess. These fees for infrastructure are only being applied because the information that is being transacted between these banks (computers) is money, instead of the network of computers I am currently using to access the information on this website that is sending a far larger amount of data for this video, which is free since I am using wifi at McDonalds or Starbucks? Couldn't there be free financial networks by now? Couldn't all the banks be on the same network by now?