interesting story on Sweden and the cashless society

[SteveP]

banks would love it... a percentage of every sale.

Sweden’s Push to Get Rid of Cash Has Some Saying, ‘Not So Fast’ - The New York Times

interesting to note that they put cash sales in the USA at 8% of volume.

[vertical_doug]

banks would love it... a percentage of every sale.

Sweden’s Push to Get Rid of Cash Has Some Saying, ‘Not So Fast’ - The New York Times

interesting to note that they put cash sales in the USA at 8% of volume.

Except in Europe, the interchange rate being charged is regulated and much lower. In the US, you are probably at 1.5-2% interchange for cards, in Europe pretty much 0.20-0.30%, so about a tenth. If anything, this will be driven lower. The irony here is with card security in Europe is also much higher with the chips.

D

[SteveP]

Except in Europe, the interchange rate being charged is regulated and much lower. In the US, you are probably at 1.5-2% interchange for cards, in Europe pretty much 0.20-0.30%, so about a tenth. If anything, this will be driven lower. The irony here is with card security in Europe is also much higher with the chips.

D

we get hosed by the banks in USA.
Europe is far ahead in a lot of this stuff...
nothing like the portable cc machines over there instead of sending the waiter to the back of the restaurant w yr credit card.

personally I like using cash for a lot of stuff.

[sk_tle]

I barely carry cash anymore. I mostly use cash when I go out and want to be able to tip the waiting staff directly.

[AllKnownBikes]

Except in Europe, the interchange rate being charged is regulated and much lower. In the US, you are probably at 1.5-2% interchange for cards, in Europe pretty much 0.20-0.30%, so about a tenth. If anything, this will be driven lower. The irony here is with card security in Europe is also much higher with the chips.

D

Just out of curiosity, what makes the chips in Europe more secure than the chips in the US?

[vertical_doug]

Just out of curiosity, what makes the chips in Europe more secure than the chips in the US?

With the addition of chips on US cards, it has become better in US. I think it is more behavioral in Europe. 15 years ago, Europe was a sh!tshow. Essentially, a card never leaves your possession. They bring the reader to you at the diner.

[theflashunc]

Just out of curiosity, what makes the chips in Europe more secure than the chips in the US?

Nothing, today, really. The EMV standard is a universal one. The lack of migration for years has been US card fraud rates were still at low incident rates. Basically, the card swipe approach wasn't broken as the back-end anti-fraud measures imposed by the networks and the issuing and acquiring banks was really effective, so the industry didn't see a pressing need to fix it. Plus, migration is/was an enormous pain for millions of existing cardholders. We're through the worst of it now though.