[dupe]
More discussion: https://news.ycombinator.com/item?id=41639635
That's a drop in the bucket compare to credit card interest rates.
Consumers are free to choose never to pay credit card interest rates (by only spending what they can pay off). No one is forced to borrow money.
Merchants have to choose between being cash-only and paying Visa's high fees.
Previously, yes, but the future looks different. Pay by bank with instant payments is rapidly becoming an option (leveraging FedNow instant payments). Combined with the ability of merchants to surcharge credit card transactions, it is relatively straightforward to encourage consumers to low cost payment rails.
https://news.ycombinator.com/item?id=41593450 ("HN: Walmart Plans Instant Bank Payments, Cutting Out Card Networks")
Example service provider offering: https://www.fiserv.com/en/solutions/real-time-payments/now-g...
After Zelle's rollout I have zero trust in Bank's ability to combat fraud in a consumer friendly matter unless they're required by laws with teeth to do so.
There is no way in hell I'd trust this service based on anything I've seen so far.
At least with a debit card you have Visa's limited fraud protection in most cases.
There are billions of dollars of unnecessary interchange fees being paid and in play, so while there might be consumer hesitancy, there are overriding forces.
Every major US cellular carrier requires you to pay with ACH now if you want your autopay discount, for example. Little economic nudges work. Surcharge the credit cards and let customers self select to payment rails based on their needs.
(FedNow has a closed loop fraud management system, and Reg E likely applies: https://www.consumerfinance.gov/rules-policy/regulations/100...)
Why not just cap fees for everyone. To something like 0.1%?