What Is Interchange?

https://blog.lithic.com/interchange/

by boling11 • 4 years ago

35 4 4 years ago

blog.lithic.com

iancarroll• 4 years ago

A good post about the Durbin Amendment in particular, which is pretty interesting on its own: https://kunle.app/feb-2022-children-of-durbin.html

danielmarkbruce• 4 years ago

yeah if the durbin exemption disappears, so do a lot of fintechs. It's a crazy big risk given a) there are people pushing to make it disappear and b) it's a total bs exemption in practice.

ResNet• 4 years ago

Things are quite different in Europe, where EU interchange is capped at a much lower 0.3% for credit cards and 0.2% for debit cards for most transactions [0]. Despite this, banking fintechs are still thriving, such as Monzo*, N26, and Revolut.

* whilst Monzo is a UK bank, Visa/Mastercard still use the same EU domestic interchange rates in the UK post-Brexit, at least for now.

[0] https://en.wikipedia.org/wiki/Interchange_fee#European_Union

gumby• 4 years ago

It's been years since I had any connection to the conventional financial sector but I remain shocked by how many participants are involved in the flow of money, most of them fleeting and tangental yet each getting paid for the privilege.

I remember looking at the flow of cash from putting $100 into a 401(k) (US employer retirement plan) to the money actually getting invested. That drawing took up two whiteboards and as a result a few percent never made it into the market.

What Is Interchange?

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