It's not "a trick" or "a paradox" that people use a Visa card and don't know about the company's origin. The same is true of almost all common objects.
@@nialfrancis5728 They be like "Ugh, rich people avoiding taxes amiright?" These days and It's like yeah, I would too. And they would too, why don't socialists just donate all excess money to the State if its so good 🙄 A lot of people in the comments are angry at companies for bringing them a service and making profit of making your life easier. Its incredible.
@rtsp how does inflation benefit your government? Maybe another government that your government borrowed from might benefit from your government's inflation. Inflation devalues the currency of the operating government .
An interesting footnote at the most modern of credit card history: most credit card issuers track where you shop, what you buy, and your general spending habits. That information is aggregated, and then sold to health insurance companies, among other corporate entities. My Amex has a section on this in the ToS. This practice is illegal in nearly all of the developed world. But not in the US.
And now it's become so entrenched in the system that the entire retail economy gives these companies 3% of every sale. Even when there's other payment methods that don't require a fee. Edit: I'm not talking about cash. I 'm talking about other online payment options that don't require fees.
This, would create a competitive opportunity IF the capital-intensive infrastructure needed to run these business wasn't such a monopoly. But commoditisation will happen there too, even if it may take decades.
i usually pay cash and if i buy in small store i have chat with owner,pay cash and they are happy to lower price for 3%,they still benefit by getting money immediately
@@danieleverywhere132 they get the money immediately with a card as well. I get direct deposit every midnight for the previous day. And I dont have to make a deposit at the bank. So the 2% fee is almost worth it, for the convenience... Its the 3.5% + cards that are an issue, for me... the reward cards get over 3%
no visa keeps 0.2% of that. Most of that goes to issuing bank and acquriing bank. Usually out of a 2.5% take rate transaction. Visa/Mastercard keeps 0.2% the issuing bank keeps 1.8% then the rest of it is split in a plethora of ways with other parties like the the processor, payment gateway, acquiring bank etc. Visa doesnt issue any credit and only keeps roughly 0.2%
But we should know. It's important to know how things work and the origin of the things we use all day every day. Doing so allows us to think for ourselves.
I worked for a credit card processor business for years and years. This video is very good at explaining the process and industry. Almost no one outside of the intdustry even knows it exists, let alone who accepts the risk, who gets the money, etc.
They're too powerful. There needs to be checks on this. Our culture pushes against industry oversight for some reason, and we keep getting screwed by whales.
@@watamatafoyu BankBoston switched over from clearing credit cards internally (and they were a very smart shop, but that was probably why it was too expensive to go on) to using FDR. The day came for the switch over on the home banking system (see below). We threw the switch, and thousands of credit cards fell on the floor. This was 1996, and BankBoston (very smart shop) was Y2K compliant... and FDR, which handled 40% of credit card clearances at the time, was not. So VISA cobbled the system together to bypass the problem (temporarily), threw the switch, and thousands of credit card FRAUD fell on the floor (oops). A mountain of paperwork to work through with Treasury...
Do you think they run a risk of being ousted? I can imagine Apple doing it (Apple Pay, Cash, the new phone-to-phone; it's kinda like a high-tech version of the mobile money that is taking over Africa). Currently they are building on top of Visa/MC but that could change, couldn't it? I mean, Apple could run its own blockchain even.
For a long time, my parents saw credit cards as something similar to hard addictive drugs. Their concern was that you could easily get into trouble with uncontrolled debt and interest.
@@KingAlanIthe only problem with using a debit card for online shopping is that your money isn’t protected by fraud. If you lose $300 on your debit card due to fraud. That sucks. But if it’s a credit card, you have no liability whatsoever. Fraud protection for credit cards is objectively better
Credit cards, when used responsibly, can be a net positive. When used irresponsibly, they can be catastrophic. It really is up to you as a person to decide if you are right for one or not. The key is to not treat your CCs like an “infinite money glitch.” They are a substitution for the cash you already have on hand or in your debit account. Pay them off every month, and you will be fine. Don’t and you may never climb out of debt.
Not exactly they talked about what they do. Take on risk. There's a reason merchants ran to them in the early days. You're paying into the network of banks.
I remember when "VISA" was called "Chargex" before they had magnetic strips - I'm thinking early 70's. They ran TV ads that showed the card and preprinted 3-copy carbon paper receipts going into the manual imprint machine, along with some catchy jingle. The idea was that the merchant would drag a wand across the carbon paper sitting on top of the consumer's card, which would leave an imprint of the card on each paper copy. The merchant would get a copy, the consumer would get a copy, and presumably the merchant would remit the 3rd copy to the merchant's VISA agent to be reimbursed.
Credit Card Imprinter AKA Knuckle Buster. This is still a thing in some cases (at least in EU) for specific cards. Not all shops have this method. If there is no internet/electricity you can still use this method to pay for goods(there is a max amount you can swipe). It is a backup method for paying just like there is a backup method for issuing receipt/invoice if there is no electricity/internet.
I live in Southeast Asia and they have dumped Visa and MasterCard. Everyone here uses a QR code based payment system that is somehow connected to Chinese Banks. Even the smallest street vendor uses this system.
@mistersync100 when they purchase something they just scan a QR code that the vendor displays at the front of the store. They hold the phone up and show the vendor the confirmation of payment. Everyone, even the smallest little street vendor use this system. It's in China Thailand Cambodia Laos Malaysia Vietnam Indonesia.
The highest number I could find was 241... 193 United Nations members, 2 recognized as Independent. But one source mentioned 241 counties and territories being recognized.... In short 700 is not a real number. 😂😂😂😂
@@PhoenixEncore ISO-3166 is the country code classification used for statistical purposes and issuing TLDs (top level domains) it contains 249 codes for countries and territories. In many cases countries have external territories, self-governing territories or special regions and these territories have been recognized as a statistical entity based on the M49 of the United Nations Statistics Division, such as US - Virgin Island US, Guam, Puerto Rico etc. UK - Virgin Island UK, Bermuda, China - Macao, Hong Kong etc. You are right 700 is a big stretch.
34:34 97.9% goes to the merchant, 1.8% goes to the issuing bank, an 0.1% goes to the acquiring bank and technology provided? Maybe should interview small business owners on what's the true cost of Visa/Mastercard systems. It's never just 2-3% of the revenue stream. Cash is always a good payment method, and some countries have used direct bank transfers as payment methods by scanning QR codes on your phone app. We live in an age of rapidly emerging technologies, and there should be better less exploitative alternatives at much lower costs. Why still charge legacy land line rates when everything is VOIP, because they can.
Brazil has the PIX payment method, it's managed by our central bank. They handle millions of instantaneous transactions daily and it can also add complex metadata to transactions (User message, company and user info so you know to whom you're paying, invoice data, tables of information, etc) , and it has zero cost for the merchants and consumers. VISA/Mastercard should be phased out eventually.
it really is only 2-3% for visa/mastercard. you can even get powerful terminals that will give you a straight fee between there for accepting cards and will usually add in some free software you can use. Cash is not a good payment method. It sucks and is outdated. What's better than having your bank directly let you use your cash? Like a lot of this doesn't make sense.
1) as has been stated, it really is just a 2-3% fee. If the business owner thinks it's a lot that's on them. 2) the alternative to this is spending way more than the 2-3% to move around, protect, and check/monitor the physical cash. 3) that QR system sounds extremely insecure. If it's on your phone it's a really easy way to get hacked, which is why it's not as popular in the US. We have all that stuff.
A little Freakonomics: I remember working in my Sister and Bro In Law's Hardware Store in the 1960's. She had an old school mail & receipt spike full of NSF checks from local customers. A good number of the NSF customers were renters who were about to move so they figured they were going to beat the debt and be unfindable, others were small local contractors who got overextended. Then the Credit Cards started making big inroads to the system here in SE Looziana. The 1960's were truly Watershed years in how ordinary folks handle their finances. It worked for a good number of folk but likely Bankrupted many more.
you gotta admit VISA was genuis and single handedly revolutionized the worlds economy. it did so much good i’d say the only issue is lack of competition for visa. no one can hold them accountable for high fees for example. they where simply ahead of their time without visa the world would likely be several decades behind in terms of transaction processing. this is one of the few corporate conglomerates you can argue was for the most part made ethically and “earned” their spot. their business model too is just genius like their profits literally goes up with inflation
If anyone’s interested the Aquired podcast has a super in depth episode about Visa and it’s FASCINATING to say the least! Totally recommend checking it out
Mate, did you say more than 700 countries at about 38:10? I do not know if you intended to say more than 70 countries and slipped, because it can't also be governments even counting regional ones.
I don’t understand I mean 700 countries. Make sense if you don’t think about it! lol The crazy part is most people nowadays are TikTarded, they don’t even know how many countries they are! Especially in America!
I don't run CC transactions. I have a client fill out a check and take a picture. I then represent the check to their bank. Sure, it takes a day or two longer, but I don't get charged a fee. Our lowest charge is 10k, so those fees add up fast.
Yeah, checks are awesome whenever the customer and merchant actually trust each other. I consider the payment processing fee the "cost of low trust", with chargebacks and the nondisclosure of my checking account numbers the killer features
So you don't get charged for banking? There's no cost at all to depositing cheques at your bank, as a business? What happens if someone passes you a dud cheque, what then? If you don't need the protection of a card network, then sure, it makes sense. But for a lot of retailers/service providers, that risk is too great - especially online.
exactly, i was also surprised about the overly positive tone when describing how they were sending out credit cards to people who had no idea how to deal with credit and calling advertising “education”.
The words: "just a little, don't worry", are anathema to people actually trying to learn more. Don't worry, John. Don't patronize your audience. We're here for the content, and we love it.
You should stick to it, I had a try years ago, and didn't end well, specially when you have a bad turn. 2020 deliver me from that trap, but I still have 1k to repay now.I had share the same mindset you got untill the internet market and special offer, push me to get into it, big mistake I make then. Now I use only debit, cash and credit I put myself on card.
They're only bad if you don't know how to use them. The problem is that people spend money they don't have. In reality, you only spend what you physically have in your bank account. That way if things do go wrong, you can instantly pay off the card and cancel it. Always make sure you pay off your debts in time and you won't get charged interest. It essentially means that you get to spend your money, while still being able to keep your savings in an offset account or high interest account. By doing this, you also get points which you can claim on many things. Personally I use those points to buy fuel gift cards. Unfortunately many just see credit cards as free money. Which it isn't. And used improperly you can find yourself in trouble. But used properly you actually gain money for doing what you're already doing.
That's a stupid idea for a few reasons. Mainly you need to build up a credit history if you want to get money from a bank, for example a mortgage. Credit cards are only bad if you use them incorrectly. If you want to use them safely whilst building up credit passively, for example use it for your Netflix subscription or any other subscriptions for that matter. Then just pay it off on time and you'll never have any problems whilst helping yourself in the future. Credit is one of the biggest tricks used by rich people, did you know most billionaires don't actually pay for anything with money? There's special banks that offer 0% interest loans for rich people, they use these loans to pay for stuff because most off their own assets aren't liquid, its usually in the form of bonds or shares in a company that can't be spent.
Credit cards are leeches. Cost of goods and services would be LESS if we went back to cash. People think getting 1%-5% cash back they are making out, they are not. Retailers have simply raised the prices to cover the costs
Because cash is convenient? You have to go a bank to get cash, over and over. Does that work at midnight on a sarturday? What about in the middle of nowhere with the nearest bank 50 miles away? What about paying for something online from a company in France? Cash is not free and not as useful as you say.
@@flamesintheattic he prolly doesnt mean just paper cash but opposing credit system. do you know these interest based economy is forbidden in islam? simply because they derails the economy when people starts depending on it. sure go live on what you dont have on the name of convenience.
these western economy are just total scams. everyone knows it but they just so addicted cant control themselves from something that should so basic. westerners profit 9$ from a product that takes 30cents to make and its just fucked up. entrepreneurs founders billionaires mega companies an unicorn born every other month, people pouring money pump pump pump take big profits to stay on radar and cover marketting and 50 middlemen ff
@@flamesintheattic Your low effort argument did nothing to disprove the fact that your cost of goods and services includes credit card fees thus making EVERY purchase more expensive by on average 3.4% and in some cases as high as 5%. You can buy things online via ACH which costs $0.00 in fees.
Don't forget that cash transactions have costs as well. For a consumer, walking around with cash is risky. It makes one a target for crime. For retailers, keeping cash in their stores is risky as well. Stores, bars, restaurants, etc., are targets for theft at the register, in the office, and on trips to make bank deposits. There is a cost to this as well: losses from theft, expensive drop safes, security guards, extra insurance, armored car services, constant counting and recounting of cash, and more.
Not to mention that as a retailer, some banks even charge you to deposit cash in excess of certain amounts. Plus the manual aspect of having to move the money or pay a service to do so. As a merchant, I'm completely fine with paying the 2.57% that I do now to cover all of the things that I don't have to worry about.
I use Visa and Mastercard debit cards. I only use credit if I want to pay later. The most important thing is that I use cards that don't charge processing fees and other nonsense fees. Remember, banks already make money every time you spend, and you shouldn't pay them to maintain their Visa/Mastercard network.
@TonyFisher-lo8hh some merchants will pay the additional charges, some will ask the customer to absorb the charges by adding it to the total bill. In Singapore, it is illegal to ask customers to absorb the extra fee if the final total bill is not reflected in the receipt 😁
@@tuapuikiabut you're missing the point that the only fee you will be charged as a consumer is interest, if you haven't paid it off at the end of the month. The merchant is still paying the transaction fee regardless of if you use a credit or debit card.
Dude, what a fantastic video! Didn't think I would watch all 40 minutes of it, but a couple of minutes in I was engaged. I like your presentation style; again, great job!
@ crony capitalism then? how would you describe those designed to be competing in business colluding to ensure artificially high profits? I feel that has to be an oligarchy if not an oligopoly where those who are in buisness collude. I mean this has been rebranded as synergy?
I'd never thought about the checking vs savings account until I traveled outside the USA, and learned that in some countries the typical consumer account isn't separated into checking/savings. It's one account for all transactions.
A checking account is a type of bank account that allows the account holder to write personal checks as a method of accessing the money in the account. Checks are basically a method of authorizing someone the limited ability to withdraw an authorized amount of money from the check holder's checking account. It used to be that only banks issued checks which could be used to withdraw money from savings accounts.
@@bufordhighwater9872 none of these comments address anything about HOW using "checking" for current accounts is explained in the video. Something the viewer imagines but not explicitly covered doesn't count.
payment cards are one of the greatest cons of all time, at a fee of 3% every single Dollar that is spent 250 times belongs to a card payment taker. They managed to commodify the act of using your own money.
@@WarlordEnthusiast John Coogan did break down the cost of the fees involved in one transaction. It's in the video at around 34:06 , the fees work out to be about 3%, VISA making about 0.2% of that
Go ahead an buy something from online from let's say.. Germany.. with cash. See how well that goes for you. Credit cards are a service that greases the wheels of global commerce. Without them many things would be difficult or impossible. Don't be so obtuse.
@@sbjchef I buy alot of stuff online now because its cheaper than buying it in person with cash. If anything buying stuff with cash is more expensive than card. Unless its something used, then buying it online is the way to go. Also, your "explanation" doesn't explain why a product costs the same in a store if you use cash or card.
This is the first time I hear the VISA story. Thank you for making this video. Only I don't think you are right that customers don't like to pay with crypto, it's that you can not pay most bills with crypto. At my job, we manage payments of utilities for seven hundred people, and at that volume it has become clear to me just how much VISA is taking when people opt to pay us with VISA card. But crypto is not an option because we can not pay the bills with bitcoins.
Is there a version of this without music, perhaps an unlisted one? Some of us are weird and can’t focus on spoken words when there’s music vying for attention.
Some presenters are so intensely brainwashed by the millions of advertising jungles they have been subjected to - like Pavlov's dogs - they have become brainwashed an d have this need to play music during their presentation - which detracts from the value of the presentation. These people are so easily brainwashed / indoctrinated - perhaps they should concentrate on a music channel to satisfy their appetite for music.
I think the Visa Mastercard duopoly forbids merchants for taking out a fee for card payments. this is why many businesses instead choose to not accept card payments below a certain sum.
@@asdfghyteractually in many countries it is a legal rule to have no fee for card payments, and even in some places a minimum card purchase level is banned
1. "He was a capitalist" what's the purpose and use of this reference? What useful information does it provide? How is that info relevant? 2. How is,"member ownership" & member input on organization Socialism? How would join a group where they will have no input? (Joining the armed services or getting job is not applicable) 3. Clearing houses were first proposed in 1636 by Philip Burlamachi, financier to Charles I of England. So an ACH isn't a new thing, but a novel system doing an old thing. ...
I noticed that too. I can't be the only person who is getting annoyed with people misusing the labels of capitalist and socialism to mean "guy that wants all the money" or "guy that works super hard/bootstraps" and "literally anything that involves input of more than one person" respectively. Our school system has failed us in many ways, but one major way is the potato-for-brains way of looking at everything as "capitalist = the bad thing, socialism = the good thing" even when there is no relation at all.
Kinda, but shops get a lot for that 2%. Obviously some of it is profiteering, but a 2% per transaction fee is easily absorbed into the general cost of business when it gives you 1) a huge customer base, 2) is divided up between all of the companies that sit in between, 3) allows retailers to keep the money from stolen card payments because the banks absorb that cost instead, and pay for it with the fee, and 4) removes/reduces the stress of handling cash (miscounting, fake bank notes, deposit fees, and time to deposit if you're a small business that takes cash to the bank directly, fees for armoured cash pickups if you're a big company)
@@123moeall backed up by ever growing inflation and 90% of purchasing power lost since the gold standard was removed and the Federal Reserve was created by foreign (Zionist) investors. Big win for capitalists at the cost of the people
2% is pretty low too. For smaller vendors or those with “high risk” transactions it can be 3-4% Stripe is a common example. Their rates start at 2.9% + 30c for each transaction. More volume will get you a lower rate.
37:08 not sure what Hock was on about. Competing payment processors and card issuers did emerge after Visa and Mastercard, most notably Discover (in the US). Discover and Amex both issue cards directly to consumers rather than through banks, so what's the issue here?
It's just a lot easier to use and issue. Plus, it's a debit first system. It probably would succeed in Africa if not for the lack of electricity and internet access in many places.
Meanwhile here in germany, most companies don't accept visa, since their fees weren't profitable for them. Why should you pay a high monthly fee, when you don't have any customers with visa cards. some grocery stores started to accept with a few years ago, but it still far from general use.
Once it starts it'll explode. The reality is overall it's cheaper to accept card but not everyone realizes it because the cost of cash is more hidden in things life theft, errors checks and balance (which takes employee time thus money)
Weird how the government still decided it had to be written in law 20 years ago, that customers paying with a card (formerly "EC-Karte", now "Girocard") must not incur additional fees at checkout? What does this lead to? Ah why, yes, such fees are spread to all customers by accounting for it in goods prices.
@@thiswillprobhrt Yes for Visa and Mastercard exist a fees the vendors have to pay monthly just to be able to use the service. The main reason, why it won't spread further, is that we have a so called "EC-Card" from our bank, which is linked to our bank account and is used instead to pay cashless, or to get money out of the ATM. You only need a visa for when you shop in onlineshops, that don't except anything else besides credit cards. Online payment options here are: "buy on account", "buy on prepayment" (both are bank transfers), "direct debit authorization", "PayPal" (which gets a direct debit authorization), same for "Sofortüberweisung", and "Klarna" (Service, with whom you made an installment payment agreement).
Google "301 ranch road west pescadero" and you'll find a bunch of references to it; there is a bunch of farm land on the west side of the Santa Cruz mountains
What's crazy is that even though i was homeless and unemployed at the age of 18 I was sent a pre-approved CREDIT CARD! WTF?! ARE THEY (THIS WAS IN 2001) SO DESPERATE TO PUSH PEOPLE INTO DEBT KNOWING THERE WAS NO WAY I COULD PAY?!?!😂 I NEVER USED IT. THOUGH LOOKING BACK, IF I HAD, I WOULD'VE USED IT TO PURCHASE A CELLPHONE. THEY (the cellphone companies) WANTED A $500 DEPOSIT AND LIKE $100 A MONTH, PLUS A TWO YEAR OBLIGATORY CONTRACT! YEAH RIGHT! I'M GLAD I DIDN'T GET SUCKED INTO THAT 🐂💩!😂🎉😮😢
I get approved for credit even though I owe more per month than I currently make 😆 They're asking for trouble, but they'll get bailed out while we get screwed.
Well, m8, this was 2001, the banks between 2000-2008 worldwide lived in a parallel reality, things arent as crazy now in most places. And let's be real - giving out credit cards to people who don't have a job isn't exactly an insane business decision if you are really careful with the limits and who you give it to. And having a credit card is something that can bail you out of tough situations if you use them properly - if you don't have a job you will be spending some time applying and during that time you'll need to keep yourself clean and presentable and fed. Obviously you want the banks to offer such credit cards at very low credit limits to avoid bankrupting themselves and the citizens, but it's not the end of the world.
I'm from germany and credit cards are seen in a very negative light here. It's (correctly) seen as creating dept. Why wouldn't you buy stuff with money you already have instead of money you promise to have in the future? Debit cards are another story. Don't get me wrong, I'm sure credit cards are also used here a lot. But having a credit card isn't normal for anybody and you are not forced to use one for some weird "credit score".
people paid just a little up front sounds like a loan just more expensive one because of them every purchase is 3% more expensive than it should be and that is before fees i don't even own credit card,only debet i use visa electron abroad because i simply need some form of card but it is much cheaper than visa but that card is just media not loan credit cards are for losers
Look at your debit card. I bet it has a VISA logo on it, so you're already paying into that 3% more expensive purchase, even with a debit card. If you have the money to pay off the balance before interest accrues, you can't get perks for using a credit card, like cash back. If you can't do that, then stay away from credit cards.
@@theplayernkc Sure you do,if you buy with card,this is why i usually propose seller cash deal so Visa gets nothing,i get 3% cash discount and seller gets money immediately instead waiting couple weks Advantage of debet cards is lower fees when i withdraw cash abroad,credit cards are notorious for charging you even 5% I don't care for cashback,that is just carrot,later comes stick
@@danieleverywhere132 Cash doesn't lower the price for me at any place I shop. Most places don't even want cash now days. Buying a car at a dealership with cash can cost you more money. As for cash back is just a carrot and later comes stick. There is no stick as long as you pay off the balance before interest accrues and if you're going abroad a lot, you can apply that cash to airline tickets. You really have no idea about credit cards.
I haven't paid interest on a credit card in a decade. I get points to use for cash back or other goods and services. I also get free travel insurance and consumer protection on purchases. Credit cards are great of used responsibly. And they save trips to the bank/atm.
VISA has aspirations to have merchants completely go cashless such that all transactions go through them - and they would shave a slice of a penny off every dollar going through.
One of the challenges Visa faces lies in its technology infrastructure. Much of the core technology powering Visa relies on Assembler, a programming language that was widely taught in universities in the 1980s. As experienced, long-standing employees retire, the pool of staff proficient in Assembler naturally declines, presenting a concern for the future. Visa’s main processing engine operates on mainframes housed in bespoke data centers, another legacy of the 1980s and 1990s. While IBM has signaled a shift away from mainframes, Visa remains reliant on them for critical operations. Its no coincidence that Visas tech management team is also a product of the 80s and 90s processes and management style. Visa remains a strong, cash-rich company with the ability to sustain its investment in this established technology and the talent that supports it-for now.
IBM continues to make mainframe solutions and the move from legacy code is well underway. Luckily the requirements are very well defined for any code that needs to be refactored from scratch. Having legacy code programmers on hand definitely helps with the transition, but it’s not a showstopper.
38:20 how about BLIK, is it also working through visa or mastercard? Cause you can pay with it in shops but you can also trasfer money to your friends account in another bank in seconds
I find it ironic you can pay off a Buy Now Pay Later card using a Visa credit card which means you can extend the interest free period. You can’t even use eft like PayPal does to pay directly from your savings account.
And then Visa has basically become the opposite of what it was originally intended to be: a centralized authority that has control over the global market, including the power to decide what is and isn't allowed to be sold. Because they are worried about their brand.
All these years later and nobody took this guy's advice. Sure they implemented his ideas but that was only because he was lucky enough to be heard. The top down system is still stifling the vast majority of human creativity.
Because that isn't accurate. Visa, Mastercard and Amex all run their own networks. You might be thinking of payment processors or acquirers which handle any transaction from any scheme the retailer opts to use. Those transactions are then managed on the individual card networks.
@ian9outof10 When paper vouchers were used ("zip-zap machines") the identical stationery was used for both cards and processed through a central clearing bureau. Today the transactions are processed on-line by the individual banks (data connection from the retailer's cash-register terminal), so the clearing bureau has fallen away.
The security it offers is worth it alone for all the extra fees we pay, especially with all the issues i had with Solo in the past, which was a debit offshoot of Mastercard.
Tile says VISA, thumbnail has an American Express Card in it, and the opening ad I’m fed is for Wells Fargo. Bet you didn’t know that Mr. Wells was the President of American Express and Mr. Fargo was the Vice-President of American Express. The two founded Wells Fargo & Co., Express, because all the other directors of AmEx voted against their proposal to expand American Express package delivery to California during the Gold Rush. Both were literally the UPS & FedEx of the late 1800s.
24:18 So if it took Dee Hock and the banks all the effort of creating their own telecommunication net work/ computer system to get it to work. Then why were they still behind Master Charge? How was Master Charge the biggest at that time? Didn't they have all the same problems that Visa had to overcome?
not much to understand, it is just a trap that must be avoided at all costs. profit for them means loss for the poor people. it always been that way and probably always will be.
in india we use UPI , you can say payment protocal , as of December 16, 2024, the Unified Payments Interface (UPI) has processed 15,547 crore transactions worth Rs 223 lakh crore between January and November 2024. sooo UPI killer dude
It's not that consumers don't "like" to use crypto for payments. It's that transaction fees are way too high and processing time is too long. Perhaps some day this will be solved. But for the time being tokens are almost exclusively used for speculation.
Oh I understand Visa alright. I understand that, even though % is intrinsically tied to price, and Visa makes multiple 10s of Billions in net income every year, they still increased their % charge on merchants.
Thank you for this! Quick editing suggestion there are not 700 different countries on the planet. 🌍 around minute 38:00. Thank you this piece shows the inspiration and construction of many deep networks of belief systems that many of us were born in to that impact our daily lives and that impact the price point of everything around us around the world. When it went from shameful to put something on credit in the early 1960s to life of aspiration because of great commercials the world didn’t predict what would happen. This piece shows where we are and why we are here financially, socially and spiritually. NOTE: remember money has karma and fees (like emotions) matter significantly! Peace ✌🏽
Very good to know all these details but there is a new kid in the block known as RUPAY which is coming to eat ur marketshare.atleast in india.. Good luck
At the 38:10 mark, you say there are over 700 countries support real time payments. I feel you may be exaggerating the number of countries supporting real time payments.
Instead of some company, the goverment took control of the transaction standard here. Every bank (and non bank) can implement it, and the fee is around 16 cent flat. You don't even need one single app, after all. everyone can implement it. For now it can only be used in 3 countries, but expansion is coming soon they said.
Looks like someone really embraced the AI generated slop made from theft of other people's copyrighted works. It really helps “enhance” your “creativity”. My favorite is the one trash image at 12:54 where you can see a mid century banker in his mid century office sitting beneath a clock with weird AI deformed numbers, and on the desk in front of him, his misshaped 1990s landline office phone and his big LCD screen (or iPad, or whatever that thing is supposed to be). The molten faces at 13:54 and six-fingered hands at 14:31 are also a nice touch. Well, as long as it helps your "credibility" as a documentary maker, buddy... just don't expect anyone to take you seriously. Oh, and also, nice detail with the remains of Alamy stock watermarks at 13:37. I bet this one was also AI generated after some creative borrowing of source material from where it shouldn't have.
Random fact: the first video phone came out in 1927. And in the 1950’s there were 2-way video phones. They cost about 50k a piece. It’s not far fetched that an office would have had one. The rest…. Who knows. 🤣
Bitcoin and other crypto is the answer to destorying credit lenders like visa and master card and because it can be decentrialized it can completely do away with the insane tatics to ever increase interest rates on small loan users.
There is a big difference between a Credit Card and Bitcoin. With Bitcoin, you are your own bank, you already have the money, you're not borrowing anything when paying with Bitcoin.
Or you know, IDs like Estonia that allow passwordless payments, voting, device sign in, home automation, literally anything, just State-backed instead of corpo-nonsense. No need to pump the bitcoin pyramid scheme.
Well it's not Visa and Mastercard charging interest rates, for one. Secondly, there would be no credit with crypto, so obviously no interest. But I'd wager it wouldn't be long before a crypto exchange started offering crypto loans to customers, with credit style interest. But also, crypto has no protection whatsover, once that money leaves your wallet, it's gone. It can't be reversed, and most consumers value some protections, in the form of chargebacks etc. As well as anti-fraud protection offered by the card networks. And guess what, none of that is free.
I've always wondered why can you US use the Qr technology like my country Bolivia or other countries like Brazil, China, Corea, Argentina and many others are using to just scan a Qr code and make a payment instantly
It's not "a trick" or "a paradox" that people use a Visa card and don't know about the company's origin. The same is true of almost all common objects.
Yeah it's kinda like Band-aids, most people don't even realise that's the company's name not the object.
Exactly, most people who drive a car don't need to know how a car works intricately such as thermodynamics and fuel chemistry.
Choosing to work together is not socialism either
That's by design. It was introduced gradually and silently, and it is still being introduced.
@@nialfrancis5728 They be like "Ugh, rich people avoiding taxes amiright?" These days and It's like yeah, I would too. And they would too, why don't socialists just donate all excess money to the State if its so good 🙄 A lot of people in the comments are angry at companies for bringing them a service and making profit of making your life easier. Its incredible.
VISA makes around 54 Million USD in net profit per day
Amateurs, look how much goverments making on inflation. Amateurs ...
@rtsp how does inflation benefit your government? Maybe another government that your government borrowed from might benefit from your government's inflation. Inflation devalues the currency of the operating government .
@@Boozley ua-cam.com/users/shortsuFi8NEoXFgg
@@Boozley Ronald Reagan Explains How Inflation HURTS Americans
@@rtsp Reagan 🤣
You got fooled by an actor. Also that's not the proper answer, total non sequitur.
An interesting footnote at the most modern of credit card history: most credit card issuers track where you shop, what you buy, and your general spending habits. That information is aggregated, and then sold to health insurance companies, among other corporate entities. My Amex has a section on this in the ToS. This practice is illegal in nearly all of the developed world. But not in the US.
This is unthinking even in the developing world
It's done in the EU too don't worrry
Wait until you find out about the corrupt pharmaceutical/ Healthcare industry. They literally hate you
The US has the worst (hilarious lack of)privacy laws in the developed world
And now it's become so entrenched in the system that the entire retail economy gives these companies 3% of every sale. Even when there's other payment methods that don't require a fee. Edit: I'm not talking about cash. I 'm talking about other online payment options that don't require fees.
This, would create a competitive opportunity IF the capital-intensive infrastructure needed to run these business wasn't such a monopoly. But commoditisation will happen there too, even if it may take decades.
i usually pay cash and if i buy in small store i have chat with owner,pay cash and they are happy to lower price for 3%,they still benefit by getting money immediately
@@danieleverywhere132 they get the money immediately with a card as well. I get direct deposit every midnight for the previous day. And I dont have to make a deposit at the bank. So the 2% fee is almost worth it, for the convenience... Its the 3.5% + cards that are an issue, for me... the reward cards get over 3%
Americans trapped by their own inability to wait for cash.
no visa keeps 0.2% of that. Most of that goes to issuing bank and acquriing bank. Usually out of a 2.5% take rate transaction. Visa/Mastercard keeps 0.2% the issuing bank keeps 1.8% then the rest of it is split in a plethora of ways with other parties like the the processor, payment gateway, acquiring bank etc. Visa doesnt issue any credit and only keeps roughly 0.2%
In fairness, we dont know how most companies that make the products we use were started or how they even operate beyond the service they provide
But we should know. It's important to know how things work and the origin of the things we use all day every day. Doing so allows us to think for ourselves.
I worked for a credit card processor business for years and years. This video is very good at explaining the process and industry. Almost no one outside of the intdustry even knows it exists, let alone who accepts the risk, who gets the money, etc.
FDR, Omaha, Nebraska?
They're too powerful. There needs to be checks on this. Our culture pushes against industry oversight for some reason, and we keep getting screwed by whales.
@@watamatafoyu BankBoston switched over from clearing credit cards internally (and they were a very smart shop, but that was probably why it was too expensive to go on) to using FDR. The day came for the switch over on the home banking system (see below). We threw the switch, and thousands of credit cards fell on the floor. This was 1996, and BankBoston (very smart shop) was Y2K compliant... and FDR, which handled 40% of credit card clearances at the time, was not. So VISA cobbled the system together to bypass the problem (temporarily), threw the switch, and thousands of credit card FRAUD fell on the floor (oops). A mountain of paperwork to work through with Treasury...
@@watamatafoyuthere is oversight
Do you think they run a risk of being ousted? I can imagine Apple doing it (Apple Pay, Cash, the new phone-to-phone; it's kinda like a high-tech version of the mobile money that is taking over Africa). Currently they are building on top of Visa/MC but that could change, couldn't it? I mean, Apple could run its own blockchain even.
For a long time, my parents saw credit cards as something similar to hard addictive drugs. Their concern was that you could easily get into trouble with uncontrolled debt and interest.
My dad taught me never to get into debt and my mom showed me what happens when you do.
Same people who told us not to believe everything on the Internet. They just can't help but be hypocrites
Well, they're not wrong. I don't buy on credit, just debit cards as a convenience particularly for online shopping
@@KingAlanIthe only problem with using a debit card for online shopping is that your money isn’t protected by fraud. If you lose $300 on your debit card due to fraud. That sucks. But if it’s a credit card, you have no liability whatsoever. Fraud protection for credit cards is objectively better
Credit cards, when used responsibly, can be a net positive. When used irresponsibly, they can be catastrophic. It really is up to you as a person to decide if you are right for one or not. The key is to not treat your CCs like an “infinite money glitch.” They are a substitution for the cash you already have on hand or in your debit account. Pay them off every month, and you will be fine. Don’t and you may never climb out of debt.
Basically a RISK free middleman Cash cow is what it is LOL
Offset the risk to everyone else, collect all the gains.
And be covered by fdic insurance
still cheaper for shops than for them to allow for individual credit to clients
And the more money that flows, the more taxes govt can collect!
Not exactly they talked about what they do. Take on risk. There's a reason merchants ran to them in the early days. You're paying into the network of banks.
I remember when "VISA" was called "Chargex" before they had magnetic strips - I'm thinking early 70's. They ran TV ads that showed the card and preprinted 3-copy carbon paper receipts going into the manual imprint machine, along with some catchy jingle. The idea was that the merchant would drag a wand across the carbon paper sitting on top of the consumer's card, which would leave an imprint of the card on each paper copy. The merchant would get a copy, the consumer would get a copy, and presumably the merchant would remit the 3rd copy to the merchant's VISA agent to be reimbursed.
Credit Card Imprinter AKA Knuckle Buster. This is still a thing in some cases (at least in EU) for specific cards. Not all shops have this method. If there is no internet/electricity you can still use this method to pay for goods(there is a max amount you can swipe). It is a backup method for paying just like there is a backup method for issuing receipt/invoice if there is no electricity/internet.
Operated knuckle Busters for a decade...
At a business where I once worked, these things were still used into the early 90s.
That’s not that old. It was still used in the 90’s then it got phased out mid 90’s
Ohh, so this explains why cards have embossed raised digits
I live in Southeast Asia and they have dumped Visa and MasterCard. Everyone here uses a QR code based payment system that is somehow connected to Chinese Banks. Even the smallest street vendor uses this system.
How is itt called qr code can you tell me more
@mistersync100 when they purchase something they just scan a QR code that the vendor displays at the front of the store. They hold the phone up and show the vendor the confirmation of payment. Everyone, even the smallest little street vendor use this system. It's in China Thailand Cambodia Laos Malaysia Vietnam Indonesia.
Same in Belgium / Europe.
Can you expand on what company this would be
@@beckybnyc322 CCP 😂
I was pretty impressed with your knowledge up to the point where you said more than 700 countries now support real-time clearance of funds.
😂😂
The highest number I could find was 241... 193 United Nations members, 2 recognized as Independent. But one source mentioned 241 counties and territories being recognized....
In short 700 is not a real number. 😂😂😂😂
@@PhoenixEncore ISO-3166 is the country code classification used for statistical purposes and issuing TLDs (top level domains) it contains 249 codes for countries and territories. In many cases countries have external territories, self-governing territories or special regions and these territories have been recognized as a statistical entity based on the M49 of the United Nations Statistics Division, such as US - Virgin Island US, Guam, Puerto Rico etc. UK - Virgin Island UK, Bermuda, China - Macao, Hong Kong etc. You are right 700 is a big stretch.
@BangkokZed 😂😂😂
He meant to say 200
21:24 motion graphic?
The editor missed the note XD
Editor: "I'm not getting paid enough for this"
Editor: “nah”
34:34 97.9% goes to the merchant, 1.8% goes to the issuing bank, an 0.1% goes to the acquiring bank and technology provided?
Maybe should interview small business owners on what's the true cost of Visa/Mastercard systems.
It's never just 2-3% of the revenue stream. Cash is always a good payment method, and some countries have used direct bank transfers as payment methods by scanning QR codes on your phone app.
We live in an age of rapidly emerging technologies, and there should be better less exploitative alternatives at much lower costs.
Why still charge legacy land line rates when everything is VOIP, because they can.
Brazil has the PIX payment method, it's managed by our central bank. They handle millions of instantaneous transactions daily and it can also add complex metadata to transactions (User message, company and user info so you know to whom you're paying, invoice data, tables of information, etc) , and it has zero cost for the merchants and consumers. VISA/Mastercard should be phased out eventually.
@@lucasblanc1295 A government monitoring transactions is the last thing you should ever want.
it really is only 2-3% for visa/mastercard. you can even get powerful terminals that will give you a straight fee between there for accepting cards and will usually add in some free software you can use. Cash is not a good payment method. It sucks and is outdated. What's better than having your bank directly let you use your cash? Like a lot of this doesn't make sense.
1) as has been stated, it really is just a 2-3% fee. If the business owner thinks it's a lot that's on them.
2) the alternative to this is spending way more than the 2-3% to move around, protect, and check/monitor the physical cash.
3) that QR system sounds extremely insecure. If it's on your phone it's a really easy way to get hacked, which is why it's not as popular in the US. We have all that stuff.
A little Freakonomics: I remember working in my Sister and Bro In Law's Hardware Store in the 1960's. She had an old school mail & receipt spike full of NSF checks from local customers. A good number of the NSF customers were renters who were about to move so they figured they were going to beat the debt and be unfindable, others were small local contractors who got overextended. Then the Credit Cards started making big inroads to the system here in SE Looziana. The 1960's were truly Watershed years in how ordinary folks handle their finances. It worked for a good number of folk but likely Bankrupted many more.
you gotta admit VISA was genuis and single handedly revolutionized the worlds economy. it did so much good i’d say the only issue is lack of competition for visa. no one can hold them accountable for high fees for example.
they where simply ahead of their time without visa the world would likely be several decades behind in terms of transaction processing.
this is one of the few corporate conglomerates you can argue was for the most part made ethically and “earned” their spot. their business model too is just genius like their profits literally goes up with inflation
Ok if ask the average person how ANY company got started they probably wouldn't be able to tell you unless they worked the industry.
If anyone’s interested the Aquired podcast has a super in depth episode about Visa and it’s FASCINATING to say the least! Totally recommend checking it out
Oh and the point about leaving the card at home while at the lavish business dinner wasn’t true apparently 😆
Great podcast, I’ll check out that episode though I haven’t listened to it.
Danny Schechter has a documentary on Credit card bubble called "in debt we trust"
Thanks, I found that episode, and the show looks right up my alley.
👍👍👍
Mate, did you say more than 700 countries at about 38:10? I do not know if you intended to say more than 70 countries and slipped, because it can't also be governments even counting regional ones.
Yeah. 70 definitely. I recall growing up in the 80s, there were once 72.
He said 200 countries.
Two hundred.
Came here to say this!!
700 seems like a lot for this planet
@@rustomkanishka he definitely said 700 at 38:15
I don’t understand I mean 700 countries. Make sense if you don’t think about it! lol
The crazy part is most people nowadays are TikTarded, they don’t even know how many countries they are! Especially in America!
So Visa is a proof of stake network?
And the first proper DAO wow
Yes.
I don't run CC transactions. I have a client fill out a check and take a picture. I then represent the check to their bank. Sure, it takes a day or two longer, but I don't get charged a fee. Our lowest charge is 10k, so those fees add up fast.
Yeah, checks are awesome whenever the customer and merchant actually trust each other. I consider the payment processing fee the "cost of low trust", with chargebacks and the nondisclosure of my checking account numbers the killer features
Check's dying soon... the banks in my country already stopped issuing it.
So you don't get charged for banking? There's no cost at all to depositing cheques at your bank, as a business? What happens if someone passes you a dud cheque, what then?
If you don't need the protection of a card network, then sure, it makes sense. But for a lot of retailers/service providers, that risk is too great - especially online.
@@ian9outof10 “Our lowest charge is $10k”, presumably he's doing some identity verification on the customers?
So that's the time everyone got sucked into debt.. got it!
exactly, i was also surprised about the overly positive tone when describing how they were sending out credit cards to people who had no idea how to deal with credit and calling advertising “education”.
The words: "just a little, don't worry", are anathema to people actually trying to learn more.
Don't worry, John. Don't patronize your audience. We're here for the content, and we love it.
One of my core beliefs is NO CREDIT CARDS. I’ve seen my parents having trouble with their credit cards for a few years when I was a kid
You should stick to it, I had a try years ago, and didn't end well, specially when you have a bad turn. 2020 deliver me from that trap, but I still have 1k to repay now.I had share the same mindset you got untill the internet market and special offer, push me to get into it, big mistake I make then. Now I use only debit, cash and credit I put myself on card.
That's pretty unfortunate, since credit is one of the secret weapons of the rich. Credit doesn't get taxed, which makes it very useful.
They're only bad if you don't know how to use them.
The problem is that people spend money they don't have. In reality, you only spend what you physically have in your bank account. That way if things do go wrong, you can instantly pay off the card and cancel it.
Always make sure you pay off your debts in time and you won't get charged interest. It essentially means that you get to spend your money, while still being able to keep your savings in an offset account or high interest account.
By doing this, you also get points which you can claim on many things. Personally I use those points to buy fuel gift cards.
Unfortunately many just see credit cards as free money. Which it isn't. And used improperly you can find yourself in trouble. But used properly you actually gain money for doing what you're already doing.
That's a stupid idea for a few reasons.
Mainly you need to build up a credit history if you want to get money from a bank, for example a mortgage.
Credit cards are only bad if you use them incorrectly. If you want to use them safely whilst building up credit passively, for example use it for your Netflix subscription or any other subscriptions for that matter.
Then just pay it off on time and you'll never have any problems whilst helping yourself in the future.
Credit is one of the biggest tricks used by rich people, did you know most billionaires don't actually pay for anything with money? There's special banks that offer 0% interest loans for rich people, they use these loans to pay for stuff because most off their own assets aren't liquid, its usually in the form of bonds or shares in a company that can't be spent.
@@sCiphre interesting. Could you elaborate on that?
Credit cards are leeches. Cost of goods and services would be LESS if we went back to cash. People think getting 1%-5% cash back they are making out, they are not. Retailers have simply raised the prices to cover the costs
Because cash is convenient? You have to go a bank to get cash, over and over. Does that work at midnight on a sarturday? What about in the middle of nowhere with the nearest bank 50 miles away? What about paying for something online from a company in France? Cash is not free and not as useful as you say.
@@flamesintheattic he prolly doesnt mean just paper cash but opposing credit system. do you know these interest based economy is forbidden in islam? simply because they derails the economy when people starts depending on it.
sure go live on what you dont have on the name of convenience.
these western economy are just total scams. everyone knows it but they just so addicted cant control themselves from something that should so basic.
westerners profit 9$ from a product that takes 30cents to make and its just fucked up. entrepreneurs founders billionaires mega companies
an unicorn born every other month, people pouring money pump pump pump take big profits to stay on radar and cover marketting and 50 middlemen
ff
@@flamesintheattic Your low effort argument did nothing to disprove the fact that your cost of goods and services includes credit card fees thus making EVERY purchase more expensive by on average 3.4% and in some cases as high as 5%. You can buy things online via ACH which costs $0.00 in fees.
Which is why paying cash is a losing battle.
Can we talk about the fact that you could be a banking manager without a university degree?
I've made a horrible mistake.
Don't forget that cash transactions have costs as well.
For a consumer, walking around with cash is risky. It makes one a target for crime.
For retailers, keeping cash in their stores is risky as well. Stores, bars, restaurants, etc., are targets for theft at the register, in the office, and on trips to make bank deposits.
There is a cost to this as well: losses from theft, expensive drop safes, security guards, extra insurance, armored car services, constant counting and recounting of cash, and more.
Not to mention that as a retailer, some banks even charge you to deposit cash in excess of certain amounts. Plus the manual aspect of having to move the money or pay a service to do so.
As a merchant, I'm completely fine with paying the 2.57% that I do now to cover all of the things that I don't have to worry about.
I use Visa and Mastercard debit cards. I only use credit if I want to pay later. The most important thing is that I use cards that don't charge processing fees and other nonsense fees. Remember, banks already make money every time you spend, and you shouldn't pay them to maintain their Visa/Mastercard network.
Banks still charge the merchants for any card transactions.
@TonyFisher-lo8hh some merchants will pay the additional charges, some will ask the customer to absorb the charges by adding it to the total bill. In Singapore, it is illegal to ask customers to absorb the extra fee if the final total bill is not reflected in the receipt 😁
@@tuapuikiabut you're missing the point that the only fee you will be charged as a consumer is interest, if you haven't paid it off at the end of the month. The merchant is still paying the transaction fee regardless of if you use a credit or debit card.
38:14 Did you just said 700 countries? 😂
Came to see if it was just me!
I replayed that about 3 times, just to make sure XD
I checked maybe 5 times and than checked Google if the "around 200" in my mind were that off
Dude, what a fantastic video!
Didn't think I would watch all 40 minutes of it, but a couple of minutes in I was engaged. I like your presentation style; again, great job!
16:04 you described an oligarchy or oligopoly not socialism
Neither, actually.
@ crony capitalism then? how would you describe those designed to be competing in business colluding to ensure artificially high profits?
I feel that has to be an oligarchy if not an oligopoly where those who are in buisness collude. I mean this has been rebranded as synergy?
2:18 That basically explains why current accounts are called "Checking accounts" in the US.
Where's the explanation?
No, it doesn’t. Checking accounts are called checking accounts because they can issue checks. Not because charge cards are a thing.
I'd never thought about the checking vs savings account until I traveled outside the USA, and learned that in some countries the typical consumer account isn't separated into checking/savings. It's one account for all transactions.
A checking account is a type of bank account that allows the account holder to write personal checks as a method of accessing the money in the account. Checks are basically a method of authorizing someone the limited ability to withdraw an authorized amount of money from the check holder's checking account. It used to be that only banks issued checks which could be used to withdraw money from savings accounts.
@@bufordhighwater9872 none of these comments address anything about HOW using "checking" for current accounts is explained in the video. Something the viewer imagines but not explicitly covered doesn't count.
payment cards are one of the greatest cons of all time, at a fee of 3% every single Dollar that is spent 250 times belongs to a card payment taker. They managed to commodify the act of using your own money.
3%?
Wth kind of card are you using that charges per transaction, most cards just have a monthly account fee.
@@WarlordEnthusiast every single card transaction charges the merchant a processing fee of around 3% which you pay in inflated prices
@@WarlordEnthusiast John Coogan did break down the cost of the fees involved in one transaction. It's in the video at around 34:06 , the fees work out to be about 3%, VISA making about 0.2% of that
Go ahead an buy something from online from let's say.. Germany.. with cash. See how well that goes for you. Credit cards are a service that greases the wheels of global commerce. Without them many things would be difficult or impossible. Don't be so obtuse.
@@sbjchef I buy alot of stuff online now because its cheaper than buying it in person with cash. If anything buying stuff with cash is more expensive than card.
Unless its something used, then buying it online is the way to go. Also, your "explanation" doesn't explain why a product costs the same in a store if you use cash or card.
Advice to the youngsters: never load yourselves up with debt. Make it a point to never owe anyone anything!! ❤
38:16 more than 700 countries?
Americans can't count
that's a new record!!!
I also thought that might be incorrect.
over 500 of them are USA, than there is also China, Russia, Mexico, Texas and those others small ones like Europe etc.
This is the first time I hear the VISA story. Thank you for making this video. Only I don't think you are right that customers don't like to pay with crypto, it's that you can not pay most bills with crypto. At my job, we manage payments of utilities for seven hundred people, and at that volume it has become clear to me just how much VISA is taking when people opt to pay us with VISA card. But crypto is not an option because we can not pay the bills with bitcoins.
Amazing video! I'm 68 and watched credit cards expand and grow but never knew how it all got started.
Is there a version of this without music, perhaps an unlisted one? Some of us are weird and can’t focus on spoken words when there’s music vying for attention.
I second this
Some presenters are so intensely brainwashed by the millions of
advertising jungles they have been subjected to -
like Pavlov's dogs - they have become brainwashed an d have this
need to play music during their presentation - which detracts from
the value of the presentation.
These people are so easily brainwashed / indoctrinated -
perhaps they should concentrate on a music channel to satisfy
their appetite for music.
Yes, I’d like that too. Background music is annoying
I've learnt to tune it out automatically. I didn't even hear it until I saw this comment
Mute and put on subtitles
I wish everywhere would just allow a 3% discount for cash. I’d much rather save myself and businesses money than support any processor
They give a discount in Mexico when paying cash
I think the Visa Mastercard duopoly forbids merchants for taking out a fee for card payments. this is why many businesses instead choose to not accept card payments below a certain sum.
@@asdfghyteractually in many countries it is a legal rule to have no fee for card payments, and even in some places a minimum card purchase level is banned
1. "He was a capitalist" what's the purpose and use of this reference? What useful information does it provide? How is that info relevant?
2. How is,"member ownership" & member input on organization Socialism? How would join a group where they will have no input? (Joining the armed services or getting job is not applicable)
3. Clearing houses were first proposed in 1636 by Philip Burlamachi, financier to Charles I of England. So an ACH isn't a new thing, but a novel system doing an old thing.
...
Nothing is old, nothing is new. Just reinterpreted.
I noticed that too. I can't be the only person who is getting annoyed with people misusing the labels of capitalist and socialism to mean "guy that wants all the money" or "guy that works super hard/bootstraps" and "literally anything that involves input of more than one person" respectively.
Our school system has failed us in many ways, but one major way is the potato-for-brains way of looking at everything as "capitalist = the bad thing, socialism = the good thing" even when there is no relation at all.
over 2% fee on every single transaction is insane
Not crazy if you don’t have customers because they don’t have money to borrow
Kinda, but shops get a lot for that 2%. Obviously some of it is profiteering, but a 2% per transaction fee is easily absorbed into the general cost of business when it gives you 1) a huge customer base, 2) is divided up between all of the companies that sit in between, 3) allows retailers to keep the money from stolen card payments because the banks absorb that cost instead, and pay for it with the fee, and 4) removes/reduces the stress of handling cash (miscounting, fake bank notes, deposit fees, and time to deposit if you're a small business that takes cash to the bank directly, fees for armoured cash pickups if you're a big company)
@@123moe exactly. Many people think that every penny a business takes in is profit.
@@123moeall backed up by ever growing inflation and 90% of purchasing power lost since the gold standard was removed and the Federal Reserve was created by foreign (Zionist) investors. Big win for capitalists at the cost of the people
2% is pretty low too. For smaller vendors or those with “high risk” transactions it can be 3-4%
Stripe is a common example. Their rates start at 2.9% + 30c for each transaction. More volume will get you a lower rate.
0:52 1860's color footage?
black and white footage can be colorized through software
It's the 2020's we can coloured B&W pictures
It's stock footage from the 20th century
AI can remaster footage with higher frame rates and color.
Roundhay Garden Scene, the oldest surviving motion picture, was filmed on 14 October 1888😊
37:08 not sure what Hock was on about. Competing payment processors and card issuers did emerge after Visa and Mastercard, most notably Discover (in the US). Discover and Amex both issue cards directly to consumers rather than through banks, so what's the issue here?
UPI's introduction in India quickly tanked Visa and Mastercard's adoption rates here. And Rupay is already eating at their share too.
It's just a lot easier to use and issue. Plus, it's a debit first system. It probably would succeed in Africa if not for the lack of electricity and internet access in many places.
"The flywheel has been spinning for decades..." Leave us not get misty-eyed.
Very informative...thanks for the post 👍🏻
Meanwhile here in germany, most companies don't accept visa, since their fees weren't profitable for them. Why should you pay a high monthly fee, when you don't have any customers with visa cards. some grocery stores started to accept with a few years ago, but it still far from general use.
Because people spend more
Once it starts it'll explode. The reality is overall it's cheaper to accept card but not everyone realizes it because the cost of cash is more hidden in things life theft, errors checks and balance (which takes employee time thus money)
Is there a subscription fee for vendors in Germany? In the US the vendor lays on the transaction only. Otherwise there is no cost.
Weird how the government still decided it had to be written in law 20 years ago, that customers paying with a card (formerly "EC-Karte", now "Girocard") must not incur additional fees at checkout? What does this lead to? Ah why, yes, such fees are spread to all customers by accounting for it in goods prices.
@@thiswillprobhrt Yes for Visa and Mastercard exist a fees the vendors have to pay monthly just to be able to use the service.
The main reason, why it won't spread further, is that we have a so called "EC-Card" from our bank, which is linked to our bank account and is used instead to pay cashless, or to get money out of the ATM. You only need a visa for when you shop in onlineshops, that don't except anything else besides credit cards. Online payment options here are: "buy on account", "buy on prepayment" (both are bank transfers), "direct debit authorization", "PayPal" (which gets a direct debit authorization), same for "Sofortüberweisung", and "Klarna" (Service, with whom you made an installment payment agreement).
32:15 what's going on with the horizontal chops?
aigotvisa AI fixes this. People misunderstand Visa, entrepreneur writes.
Thats.. why india is building a govt owned seperate network .. rupay ..
As much as I hate credit cards, it's still impressive how effectively the system was designed.
i just dont get why this channel isnt bigger. your videos are always top notch, every single time
Fantastic video I laughed out loud learning Bank of America was once called the Bank of Italy
A 200’acre ranch WEST of Silicon Valley? Either it’s In Hawaii or it’s in the ocean.
Google "301 ranch road west pescadero" and you'll find a bunch of references to it; there is a bunch of farm land on the west side of the Santa Cruz mountains
What's crazy is that even though i was homeless and unemployed at the age of 18 I was sent a pre-approved CREDIT CARD! WTF?! ARE THEY (THIS WAS IN 2001) SO DESPERATE TO PUSH PEOPLE INTO DEBT KNOWING THERE WAS NO WAY I COULD PAY?!?!😂 I NEVER USED IT. THOUGH LOOKING BACK, IF I HAD, I WOULD'VE USED IT TO PURCHASE A CELLPHONE. THEY (the cellphone companies)
WANTED A $500 DEPOSIT AND LIKE $100 A MONTH, PLUS A TWO YEAR OBLIGATORY CONTRACT! YEAH RIGHT! I'M GLAD I DIDN'T GET SUCKED INTO THAT 🐂💩!😂🎉😮😢
I get approved for credit even though I owe more per month than I currently make 😆 They're asking for trouble, but they'll get bailed out while we get screwed.
Well, m8, this was 2001, the banks between 2000-2008 worldwide lived in a parallel reality, things arent as crazy now in most places.
And let's be real - giving out credit cards to people who don't have a job isn't exactly an insane business decision if you are really careful with the limits and who you give it to. And having a credit card is something that can bail you out of tough situations if you use them properly - if you don't have a job you will be spending some time applying and during that time you'll need to keep yourself clean and presentable and fed. Obviously you want the banks to offer such credit cards at very low credit limits to avoid bankrupting themselves and the citizens, but it's not the end of the world.
He's back, baby! The greatest storyteller... after such a long time!
I'm from germany and credit cards are seen in a very negative light here. It's (correctly) seen as creating dept. Why wouldn't you buy stuff with money you already have instead of money you promise to have in the future? Debit cards are another story. Don't get me wrong, I'm sure credit cards are also used here a lot. But having a credit card isn't normal for anybody and you are not forced to use one for some weird "credit score".
Dealing with cash is still a headache to a business: counting it, shipping it to the bank all involve quite a bit of effort.
Without a growing middle class, and Trump being elected now we're screwed.
29:45 If you are from india, you know that D just expained UPI.
@21:26 Motion Graphic? Missing?
As someone who is new to the merchant services industry, this is some good stuff.
I've worked for Visa for five years. You've given a better history than anyone I've ever heard.
16:04 your view on Socialism and Capitalism is DEEPLY FLAWED.
Yeah, I didn't hear anything indicating the public ownership of the means of production and distribution of goods.
people paid just a little up front
sounds like a loan just more expensive one
because of them every purchase is 3% more expensive than it should be and that is before fees
i don't even own credit card,only debet
i use visa electron abroad because i simply need some form of card but it is much cheaper than visa but that card is just media not loan
credit cards are for losers
you just use cash??
Look at your debit card. I bet it has a VISA logo on it, so you're already paying into that 3% more expensive purchase, even with a debit card. If you have the money to pay off the balance before interest accrues, you can't get perks for using a credit card, like cash back. If you can't do that, then stay away from credit cards.
@@theplayernkc Sure you do,if you buy with card,this is why i usually propose seller cash deal so Visa gets nothing,i get 3% cash discount and seller gets money immediately instead waiting couple weks
Advantage of debet cards is lower fees when i withdraw cash abroad,credit cards are notorious for charging you even 5%
I don't care for cashback,that is just carrot,later comes stick
@@danieleverywhere132 Cash doesn't lower the price for me at any place I shop. Most places don't even want cash now days. Buying a car at a dealership with cash can cost you more money.
As for cash back is just a carrot and later comes stick. There is no stick as long as you pay off the balance before interest accrues and if you're going abroad a lot, you can apply that cash to airline tickets. You really have no idea about credit cards.
I haven't paid interest on a credit card in a decade. I get points to use for cash back or other goods and services. I also get free travel insurance and consumer protection on purchases.
Credit cards are great of used responsibly. And they save trips to the bank/atm.
VISA has aspirations to have merchants completely go cashless such that all transactions go through them - and they would shave a slice of a penny off every dollar going through.
It feels like someone accidentally uploaded the work print version of this video. Still very interesting content tho.
Motion graphics?
One of the challenges Visa faces lies in its technology infrastructure. Much of the core technology powering Visa relies on Assembler, a programming language that was widely taught in universities in the 1980s. As experienced, long-standing employees retire, the pool of staff proficient in Assembler naturally declines, presenting a concern for the future.
Visa’s main processing engine operates on mainframes housed in bespoke data centers, another legacy of the 1980s and 1990s. While IBM has signaled a shift away from mainframes, Visa remains reliant on them for critical operations.
Its no coincidence that Visas tech management team is also a product of the 80s and 90s processes and management style.
Visa remains a strong, cash-rich company with the ability to sustain its investment in this established technology and the talent that supports it-for now.
Assembler is not a thing. Assembly is a low level programming language. You have no sources for anything you say
this sounds like you don't know what you are talking about sorry.
IBM continues to make mainframe solutions and the move from legacy code is well underway. Luckily the requirements are very well defined for any code that needs to be refactored from scratch.
Having legacy code programmers on hand definitely helps with the transition, but it’s not a showstopper.
VISA like Diners club started as an chargecard underwriter
Only way I can get a piece of their pie is by buying its stock, unless the DOJ does something about this like Mastercard too
38:20 how about BLIK, is it also working through visa or mastercard? Cause you can pay with it in shops but you can also trasfer money to your friends account in another bank in seconds
I’ve missed your deep dive videos! Keep it up. Such good value
I find it ironic you can pay off a Buy Now Pay Later card using a Visa credit card which means you can extend the interest free period. You can’t even use eft like PayPal does to pay directly from your savings account.
38:14 "Today, more than 700 countries ...", there aren't that many countries in this world.
Proof that John is not of this world...
And then Visa has basically become the opposite of what it was originally intended to be: a centralized authority that has control over the global market, including the power to decide what is and isn't allowed to be sold. Because they are worried about their brand.
Ok good now do a video on the Revolutionary UPI (Unified Payment Interface ) that Govt. Of India produced
Many countries have the same system so idk if we can call upi revolutionary
At 32:15 there is something wrong with your neck bro. Did you use AI or edit issue?
38:15 700 countries... yeah, right
All these years later and nobody took this guy's advice. Sure they implemented his ideas but that was only because he was lucky enough to be heard. The top down system is still stifling the vast majority of human creativity.
I missed any mention of how Visa and Mastercharge are now processed as a single system. It seems that just the names on the cards are different.
Because that isn't accurate. Visa, Mastercard and Amex all run their own networks. You might be thinking of payment processors or acquirers which handle any transaction from any scheme the retailer opts to use. Those transactions are then managed on the individual card networks.
@ian9outof10 When paper vouchers were used ("zip-zap machines") the identical stationery was used for both cards and processed through a central clearing bureau. Today the transactions are processed on-line by the individual banks (data connection from the retailer's cash-register terminal), so the clearing bureau has fallen away.
The security it offers is worth it alone for all the extra fees we pay, especially with all the issues i had with Solo in the past, which was a debit offshoot of Mastercard.
Do all these new Fintechs act as issuing banks?
Tile says VISA, thumbnail has an American Express Card in it, and the opening ad I’m fed is for Wells Fargo.
Bet you didn’t know that Mr. Wells was the President of American Express and Mr. Fargo was the Vice-President of American Express.
The two founded Wells Fargo & Co., Express, because all the other directors of AmEx voted against their proposal to expand American Express package delivery to California during the Gold Rush.
Both were literally the UPS & FedEx of the late 1800s.
In Canada the majority of debit transactions go through the Interac system, which is independent from Visa or MasterCard.
In Singapore, it's via the NETS network, a local Debit network.
24:18 So if it took Dee Hock and the banks all the effort of creating their own telecommunication net work/ computer system to get it to work. Then why were they still behind Master Charge? How was Master Charge the biggest at that time? Didn't they have all the same problems that Visa had to overcome?
I like those posters. What are those and who is the artist?
not much to understand, it is just a trap that must be avoided at all costs. profit for them means loss for the poor people. it always been that way and probably always will be.
...... 19:44 ........so the government was part of the RICO
in india we use UPI , you can say payment protocal , as of December 16, 2024, the Unified Payments Interface (UPI) has processed 15,547 crore transactions worth Rs 223 lakh crore between January and November 2024.
sooo UPI killer dude
19:00 What is the background music used here called? I love it omg..
It's not that consumers don't "like" to use crypto for payments. It's that transaction fees are way too high and processing time is too long. Perhaps some day this will be solved. But for the time being tokens are almost exclusively used for speculation.
Oh I understand Visa alright. I understand that, even though % is intrinsically tied to price, and Visa makes multiple 10s of Billions in net income every year, they still increased their % charge on merchants.
Dee sounds like a genius - going to read his books! Thank you so much for putting this together
Thank you for this! Quick editing suggestion there are not 700 different countries on the planet. 🌍 around minute 38:00. Thank you this piece shows the inspiration and construction of many deep networks of belief systems that many of us were born in to that impact our daily lives and that impact the price point of everything around us around the world. When it went from shameful to put something on credit in the early 1960s to life of aspiration because of great commercials the world didn’t predict what would happen. This piece shows where we are and why we are here financially, socially and spiritually. NOTE: remember money has karma and fees (like emotions) matter significantly! Peace ✌🏽
I remember when visa was called Chargex.
"Will that be cash or Chargex " it was in Canada anyway.
Oh my gosh, I grew up in Fresno and never knew❤ this history. Thank you for making this. Awesome job
Very good to know all these details but there is a new kid in the block known as RUPAY which is coming to eat ur marketshare.atleast in india.. Good luck
😂😂😂😂
At the 38:10 mark, you say there are over 700 countries support real time payments. I feel you may be exaggerating the number of countries supporting real time payments.
Instead of some company, the goverment took control of the transaction standard here.
Every bank (and non bank) can implement it, and the fee is around 16 cent flat.
You don't even need one single app, after all. everyone can implement it.
For now it can only be used in 3 countries, but expansion is coming soon they said.
dude i love this kind of education, keep it up! 🎉
Looks like someone really embraced the AI generated slop made from theft of other people's copyrighted works. It really helps “enhance” your “creativity”. My favorite is the one trash image at 12:54 where you can see a mid century banker in his mid century office sitting beneath a clock with weird AI deformed numbers, and on the desk in front of him, his misshaped 1990s landline office phone and his big LCD screen (or iPad, or whatever that thing is supposed to be). The molten faces at 13:54 and six-fingered hands at 14:31 are also a nice touch. Well, as long as it helps your "credibility" as a documentary maker, buddy... just don't expect anyone to take you seriously. Oh, and also, nice detail with the remains of Alamy stock watermarks at 13:37. I bet this one was also AI generated after some creative borrowing of source material from where it shouldn't have.
Nice analytics
Random fact: the first video phone came out in 1927. And in the 1950’s there were 2-way video phones. They cost about 50k a piece. It’s not far fetched that an office would have had one. The rest…. Who knows. 🤣
Bitcoin and other crypto is the answer to destorying credit lenders like visa and master card and because it can be decentrialized it can completely do away with the insane tatics to ever increase interest rates on small loan users.
There is a big difference between a Credit Card and Bitcoin. With Bitcoin, you are your own bank, you already have the money, you're not borrowing anything when paying with Bitcoin.
Or you know, IDs like Estonia that allow passwordless payments, voting, device sign in, home automation, literally anything, just State-backed instead of corpo-nonsense. No need to pump the bitcoin pyramid scheme.
Well it's not Visa and Mastercard charging interest rates, for one. Secondly, there would be no credit with crypto, so obviously no interest. But I'd wager it wouldn't be long before a crypto exchange started offering crypto loans to customers, with credit style interest. But also, crypto has no protection whatsover, once that money leaves your wallet, it's gone. It can't be reversed, and most consumers value some protections, in the form of chargebacks etc. As well as anti-fraud protection offered by the card networks. And guess what, none of that is free.
I've always wondered why can you US use the Qr technology like my country Bolivia or other countries like Brazil, China, Corea, Argentina and many others are using to just scan a Qr code and make a payment instantly