Visa To Offer Person-To-Person Payments

angry tapir writes "Visa has announced it is planning a new service that will let US customers send money directly to one another, presenting new competition to PayPal. Visa already lets people send money to Visa accounts in many other countries, but this will be the first time it will offer the service in the US."

Re:Credit card fees

[eln]

Every time you buy something with your credit card, Visa sends that payment to the retailer in cash. It does this by carefully placing each individual dollar bill on a velvet pillow, and having it lovingly hand-carried to its destination by a Visa representative, who is dressed in a tuxedo and wearing white gloves.

So yes, it does get more expensive the more money you send, and Visa is practically running a charity by only charging 2%.

Re:PayPal advantage?

[fahrbot-bot]

Paypal is a bank. A European bank.

Well... perhaps in Luxembourg. From PayPal Bank Status [wikipedia.org]:

Peter Thiel, the founder of PayPal, has stated that PayPal is not a bank because it does not engage in fractional-reserve banking.

In the United States, PayPal is licensed as a money transmitter on a state-by-state basis.[47] PayPal is not classified as a bank in the United States ...

Commencing 2 July 2007, ... PayPal moved its European operations from the UK to Luxembourg. As a Luxembourg entity, it is since regulated as a bank by the Commission de Surveillance du Secteur Financier (CSSF) and provides PayPal service throughout the European Union.

So *that* clears things up. :-)

Re:Credit card fees

[justin12345]

Just try using Western Union. Then come back and whine about a 2% transaction fee.

It's especially hilarious because WU will actually ask you if you are sending money to make a purchase, because that is not allowed. You have to make up a story that you are sending money to your old roommate, for bills you never paid (even though you are actually buying some Japanese cell phone that turns into a small dog with laser eyes).

Re:Credit card fees

[Dragonslicer]

Visa and Mastercard really make their money on the fact that so many people have continuos rolling debt every month that builds interest.

Really? I had always thought it was the issuing bank that kept the interest.