Comments on: Institutional Roles in Issuing and Processing Credit Cards

By: MyChuck12345

MyChuck12345 — Tue, 08 Jun 2010 08:41:36 +0000

Sal,
Thanks for …
Sal,
Thanks for returning to financial issues. I’ve been fascinated by all your videos, tell everyone I know (or who will listen) about the Khan Academy, and was hoping that you’d start a new playlist covering one of my favorite subjects. I’d love to hear your thoughts about the financial crisis in Europe, the current success or failure of the Geithner plan, an analysis of the CA state budget crisis, the stock market ‘typo’ that cause a minor problem a couple of weeks ago, etc.
Thanks, Chuck

By: chris1816

chris1816 — Tue, 08 Jun 2010 08:41:35 +0000

The biggest winners …
The biggest winners here are the banks. They get the interchange rate plus the interest they charge you from your payments.

By: thepoet82

thepoet82 — Tue, 08 Jun 2010 08:41:33 +0000

You know, I was …
You know, I was wondering how the heck this system worked just a few days ago!
Now I know.

By: superdau

superdau — Tue, 08 Jun 2010 08:41:32 +0000

Salzburg?
I’m in …
Salzburg?
I’m in Salzburg, Austria. Credit cards aren’t that common here. We have other kinds of electronic payment with much lower fees than credit cards.

By: superdau

superdau — Tue, 08 Jun 2010 08:41:31 +0000

@chris1816
Banks …
@chris1816
Banks are always the winners. Except for the case where you keep all your money in cash, they control almost everything. And everything has a fee attached to it, while just shifting numbers in a computer network. I gotta start my own bank

By: haobio

haobio — Tue, 08 Jun 2010 08:41:30 +0000

That’s not orange …
That’s not orange though, it’s pink. Sorry, just a trivial correction.

By: haobio

haobio — Tue, 08 Jun 2010 08:41:29 +0000

Forgive my …
Forgive my ignorance, but why does Visa want to partner with educators to teach us about financial literacy?

By: picapauengracado

picapauengracado — Tue, 08 Jun 2010 08:41:28 +0000

@superdau
One law …
@superdau
One law of economics is that when there is free entrance, profits equalize. If banks really were a more profitable business, then everybody would invest in banks pressuring their profits down, and everybody else’s up.

By: picapauengracado

picapauengracado — Tue, 08 Jun 2010 08:41:27 +0000

@haobio
…
@haobio
Advertisement? If they merely wanted to teach you finance, then they wouldn’t bother making sure khan would put their logo there.

By: picapauengracado

picapauengracado — Tue, 08 Jun 2010 08:41:25 +0000

@chris1816
The …
@chris1816
The interest rate is the natural result of the supply and demand of savings, as well as risk. Credit card companies charge higher interest rate than other lenders because of the risk involved. Many people fail or defer payments, so those who do must cover for those who don’t. That’s why as your rating falls, interest raises.
If credit card lending was more profitable than other lending, then every lender company would replace their business by a credit card one.