Forgot your password?
typodupeerror
This discussion has been archived. No new comments can be posted.

Mastercard Denies Plans For BitCoin Credit Card

Comments Filter:
  • other? (Score:2, Insightful)

    by Anonymous Coward

    How did "a major international bank" turn into "only MasterCard?" Surely there are other international banks -- or have I missed recent news?

    • Re: (Score:2, Informative)

      by Anonymous Coward

      How did "a major international bank" turn into "only MasterCard?" Surely there are other international banks -- or have I missed recent news?

      I don't really understand what you're asking, but MasterCard isn't an international bank, or any other sort of bank. Where did you get that from?

    • by idontgno (624372)

      You would have had to read TFA [paritynews.com] in the original story [slashdot.org], but all indications were explicit that it would be a Mastercard debit card.

      Besides, "a major international bank" is not mutually exclusive of "Mastercard." Banks issue Mastercards. Both are needed. (It's not a debit card unless it's backed by a bank, and it's not a Mastercard if Mastercard doesn't say it's a Mastercard.)

      So Mastercard saying "hell no" is actually a little bit of a roadblock.

      • You're correct that the original story said these were debit cards, not credit cards.

        I don't see how this necessarily requires Mastercard's approval. Presumably "a major international bank" (MIB) can already issue Mastercards, and guarantees them. Do Mastercard themselves approve every type of Mastercard that MIB issues?

        MIB could come to a private arrangement with BitInstant, that goes like this: BitInstant maintains your balance. You use your BitInstant/Mastercard/MIB debit card. MIB credits the vendor and

  • ...the almost complete lack of interest or trust expressed in just about every online forum or news outlet we leaked this to.
  • shocker (Score:5, Interesting)

    by slashmydots (2189826) on Wednesday August 22, 2012 @09:09AM (#41079903)
    A worldwide, multi-billion dollar company doesn't want to help promote a new competitor that undercuts their price and their control over the global flow of money? I never saw that one coming!
    Oh and also, bitcoin is 100% digital so any internet-capable device can send bitcoins anywhere in the world in under 10 minutes "to clear" time. So a plastic card would just help regulate it and add another layer of complication and control by an outside force. Not 1 single bitcoin user would have gone for such a product. This story had fake written all over it from the beginning.
    • Re: (Score:3, Insightful)

      by Anonymous Coward

      I think you are completely missing the reason for having a bitcoin credit card in the first place. It would have been accepted anywhere a normal mastercard would (according to tfa). This would've meant bitcoin could be used to buy stuff pretty much anywhere in real-life instead of some small online black markets or bitcoin exchanges.

      • by shentino (1139071)

        In other words, unwanted competition for the credit card companies.

        No wonder mastercard didn't approve of it.

        • Re: (Score:3, Informative)

          by Desler (1608317)

          Competition to what exactly? Assuming it would have taken off Mastercard would have been raking in money off the conversion fees on each transaction.

          • Re:shocker (Score:5, Insightful)

            by Anonymous Coward on Wednesday August 22, 2012 @09:51AM (#41080383)

            They didn't say they don't approve it. They said they were never asked about it.

            Seriously, Bitcoin people say "we'll have a global Mastercard-branded credit card avaolable to you all very soon". Mastercard say "Whadafuk? Who are you and how can you offer a Mastercard-branded card very soon if we've never heard of you?!". This only shows the lack of professionalism by Bitcoin.

        • "Didn't approve of it" is not the same as "Never heard of it".
      • Actually "the" reason is so Mastercard could skim off a couple percent from it as a currency conversion fee. I run credit cards so trust me, someone pays me in Euros and I get totally screwed. It's like 4%+.
    • by Anonymous Coward

      Mastercard is a payment processor, they really and truly don't care what the currency they're processing bills are denominated with. The reason why they're not likely to ever accept bitcoin is that they would have to guarantee it and at present bitcoins are just a fancy ponzi scheme.

      • That, and I'm sure their legal team would have a seizure trying to figure out their potential liability from helping to launder monopoly drug money back into the economy.
    • by Desler (1608317)

      How does Mastercard have control over the global flow of money? It's saying stupid things like this for why people mock bitcoin and its supporters.

      • How does Mastercard have control over the global flow of money? It's saying stupid things like this for why people mock bitcoin and its supporters.

        How do they not?! If you use your card in another country, the can charge whatever fees they want. If they don't like Africa, they jack up the fees. They can charge merchants whatever they want to accept the card too. If they haven't made the profit they want, they pass it along to the merchant. If they don't want money going to Wikileaks, they simply pull the plug. If they don't like what a certain vendor does, they just say they had too many instances of chargebacks and don't process for them anymor

        • MasterCard is a payment processor that merchants and consumers CHOOSE to use for convenience, not a boa constrictor wrapped around the neck of international commerce. If WikiLeaks wanted to, they could accept donations from dollar bills stuffed in envelopes, but they wanted an online processing instead. MasterCard shut them off because they didn't want to known as one of the companies processing charitable contributions to an international espionage suspect, not because they're some megalomaniacal superpowe
          • by makomk (752139)

            Have you ever heard of network effects? Most companies don't accept cards other than Mastercard and Visa for payment because there's no point accepting a payment method hardly anyone has, most consumers don't have other cards because there's no point having a card that you can't actually pay anywhere with, and most banks don't offer anything else because no consumer wants them. So Mastercard and Visa effectively have a strangehold on the payments market.

            • Except for cash, lines of credit, checks, money orders, wire transfers, et al. Just because Visa/Mastercard payment processing is more convenient than other methods doesn't put them in charge.
              • You could accept rocks, food, bartering, Eve Online currently, magical spells (but not on ebay lol) and nintendo 64 games as payment and your company is still a joke if you don't take credit cards. There's a thrift store next to my computer repair store that attempted to not take credit cards for 2 months. He lost so many sales and had so many pissed off customers, he had to find a processor. Speaking of processors, ask any merchant services sales rep what they think of how Visa and Mastercard control ev
            • by Desler (1608317)

              Actually most companies accept more payment options than just Visa and Mastercard. Name me a company, not some niche store that 10 people shop at, that many people deal with on a daily basis that doesn't take either cash, checks, have their own line of credit, another payment service like Paypal or things like western union payments.

            • Have you ever heard of network effects? Most companies don't accept cards other than Mastercard and Visa for payment because there's no point accepting a payment method hardly anyone has, most consumers don't have other cards because there's no point having a card that you can't actually pay anywhere with, and most banks don't offer anything else because no consumer wants them. So Mastercard and Visa effectively have a strangehold on the payments market.

              Heh, I applied for an AmEx card last week, sounds like I shouldn't have bothered ;)

              • by tftp (111690)

                Heh, I applied for an AmEx card last week, sounds like I shouldn't have bothered ;)

                The pizza place near my home only takes Visa and cash. The owned explained that anything else is too expensive and isn't worth it.

      • by Bigby (659157)

        People generating fear or misinterpreting what Mastercard does. Mastercard does have substantial control over inter-currency exchange rates. But that's it.

    • by LurkerXXX (667952)

      More like they have no interest in a ponzi scheme started by an anomomous coward, which has seen its value drop like a rock on severa occasions already.

      • And yet I made a bunch of money mining bitcoins with a high powered dual GPU system. Wow, I sure got taken! Like 99% of other bitcoin enthusiasts, I read every last detail about how the system works, potential problems, and thoroughly protected my wallet file on cold storage (not attached to my PC). And oh look, I made money. Stupid, careless people get their money stolen whether it's BTC or USD. Don't use sketchy exchanges. Don't leave your wallet file live and then download 50 illegal software packa
        • So you made actual money, without doing any actual work in order to generate that "wealth" other than running a program on your computer for an extended amount of time. You created wealth without creating value.

          Explain how this isn't a massive fiduciary jerk-off again? Sounds a lot like the much-maligned speculators of the futures markets to me.

          • Value is purely a matter of perception, as is reality. The perceived value is in the GPU time, the scarcity of the current Bitcoin pool and the potential size of the Bitcoin pool.

            • by tftp (111690)

              Value is purely a matter of perception, as is reality.

              You cannot eat that value or live in it. Even artists are creating more value (though that is also intangible) because they are producing works that people want to see or hear.

              Bitcoins, just like most any currency, have no intrinsic value. You cannot eat dollar bills and you don't really care to own those sea shells. The only value of the currency comes from the fact that you can exchange it for products that you really need. Bitcoin has minting cos

          • Bitcoin value is attached to a currency. That means an economy. The BTC economy is worth about $100,000,000. Or about the size of a small city.

            That means it's more stable than a stock in a single company.

            BTC buyers do add value to the currency. They intend to eventually spend or exchange their BTC, that means they are adding confidence to a fledgling economy.

            What people who don't have BTC are upset about is that the price has gone up astronomically while they weren't involved and BTC is slowly (but su
          • by ultranova (717540)

            So you made actual money, without doing any actual work in order to generate that "wealth" other than running a program on your computer for an extended amount of time. You created wealth without creating value.

            Actually, he did generate value: the processing power he contributed meant that the blocks involved were found sooner, which drove up the difficulty, which made it harder for an attacker to remove transactions from the Bitcoin history (to double-spend bitcoins).

            Remember, whoever controls the most co

      • by ultranova (717540)

        More like they have no interest in a ponzi scheme started by an anomomous coward, which has seen its value drop like a rock on severa occasions already.

        If you don't like something and it's related to money, it's a ponzi scheme. If it's related to politics, it's fascism. If it's related to both, it's communism.

        And it's not like Satoshi Nakamoto is any more or less anonymous than you, LurkerXXX, unless your parents had a weird sense of humour.

    • Re:shocker (Score:5, Insightful)

      by Kjella (173770) on Wednesday August 22, 2012 @09:41AM (#41080239) Homepage

      Oh and also, bitcoin is 100% digital so any internet-capable device can send bitcoins anywhere in the world in under 10 minutes "to clear" time.

      Which is one of many reasons the last story smelled bad, who'd wait 10 minutes for their grocery payment to clear. The alternative would be that MasterCard or somebody guarantees the merchant gets paid before you disappear out the door with the goods, never to be seen again while your transaction bounces 10 minutes later. At the very best it would be something like having a credit card in a foreign currency where they take an exchange fee for converting your Bitcoins to US Dollars or whatever the local currency is, since I guess nobody would take Bitcoins.

      • by makomk (752139)

        The alternative would be that the payment provider requires you to have a Bitcoin balance loaded onto the card that's already safely under their control before you use it to pay for anything, which was I think exactly what they've said they're going to do.

      • Which is one of many reasons the last story smelled bad, who'd wait 10 minutes for their grocery payment to clear.

        Ignoring for the moment the fact that from the merchant's point of view the last story was about a traditional debit card, not actual Bitcoin transfers, ten minutes is still quite an improvement over the current system, which generally takes months to "clear" the payment beyond the risk of a chargeback. With Bitcoin, after about 10 minutes (the time it takes, on average, to incorporate the transaction into the next block in the chain) the payment is effectively final, and within an hour or so (six confirmat

    • by geekoid (135745)

      Mastercard didn't do for it because it's a non starter. bitcoin is shit, and it's full of issues. If not, Mastercard would use it to make money they way they do. Mastercard only care about the ability of the currency you can charge against.

    • by ceoyoyo (59147)

      Why should Mastercard care what currency you're using? They'd probably love to offer bitcoin services... then they get to charge the merchant a transaction fee AND the customer a transaction fee plus currency exchange. It would be like everyone was suddenly shopping abroad.

      However, Mastercard isn't going to go for an anonymous system.

    • How does the end customer being charged an extra 1% "undercut their price" exactly?

    • by sarkeizen (106737)

      Oh and also, bitcoin is 100% digital so any internet-capable device can send bitcoins anywhere in the world in under 10 minutes "to clear" time. So a plastic card would just help regulate it and add another layer of complication and control by an outside force.

      ...and make it a useful system for POS. 10 min transaction clearing might be barely tolerable for internet transactions but I'm not interested in waiting for 10 min for my groceries payment to clear. Also 10 min is not necessarily the maximal amount of time as the block chain grows the length of time to get confirmation increases. You can do it in less time by forgoing confirmation but then you lose one of it's primary benefits.

    • by tgmarks (2624405)

      Not 1 single bitcoin user would have gone for such a product. This story had fake written all over it from the beginning.

      This is dead wrong!!! Many Bitcoin users would be all over this as Bitcoin is not accepted at many places and this would be a very simple way of transferring the money and spending it.

  • ...for one racket in this town, son...
  • http://yro.slashdot.org/comments.pl?sid=3062943&cid=41068717 [slashdot.org]

    So it was just a photoshop job, eh? I'm not surprised...

    • by gatfirls (1315141)
      They really need to ban bitcoin "stories" (ads) on here unless they are going to get paid for them. It's nothing more than people trying to inflate that bubble again so they can cash out. It's pitiful. May as well have stories about rumors of people becoming so damn rich from johnny woos secrets.
  • by nimbius (983462) on Wednesday August 22, 2012 @09:43AM (#41080281) Homepage

    from MasterCard...would introduce a serious flaw into the bitcoin model. Namely, the ability to override the corporate and political will of a major multinational financial processor with strong ties to the US Government.

    the huge appeal of BitCoin is the ability to treat it like anonymous cash, a privilege previously enjoyed only by the upper echelons of the rich and powerful as they finance things like proposition 8 or the next GOP candidate.

    • by geekoid (135745)

      ", the ability to override the corporate and political will of a major multinational financial processor with strong ties to the US Government."
      BWahahaha.. no.
      The huge appeal of bitcoin is from people who don't understand macro economic.

    • the huge appeal of BitCoin is the ability to treat it like anonymous cash

      That's not how I see it. To me, the appeal is that it's not centralized, so nobody can decide for me that I can't support Assange. And if I don't agree with my bitcoin exchange, I can just use another. I can avoid monopolies like Visa/Mastercard

  • by Wonko the Sane (25252) * on Wednesday August 22, 2012 @09:45AM (#41080317) Journal
    BitCoin is going to issue a credit card right after LiNux opens up a app store and HTTp holds a networking conference.
    • by ultranova (717540)

      Don't all major distros come with a built-in app store? Sure, everything is free, but still...

  • ... its the banks that create the largest roadblock to a BitCoin (or other anonymous cash) based debit card. MasterCard could really care less about who keeps a particular bank account topped off in dollars. You would have to find a bank willing to accept the exchange rate risk and violations of various anti money laundering regulations [wikipedia.org].

  • Today's Bitcoin story retracts yesterday's Bitcoin story, and tomorrow's will probably refute today's.

    Can we just stop with the Bitcoin horseshit already? The news about Bitcoin is just about as stable as the "currency."

    • Did you know that modern web browsers have added new feature that will let you avoid reading stories which make you feel uncomfortable? All you have to do is not click on the link.

      Try it out sometime and see if it works on your browser.

  • How strong did bitcoin get before investors dumped their bitcoins and developed a rumor to eliminate buying confidence and dramatically reduce the bitcoin value against the dollar? What was the bitcoin exchange rate trend before the story broke, and what is it now?

    I don't think that bitcoin development is a bad idea on its face (anonymous money), and I don't see any pyramid scam, but without regulation or oversight, the bitcoin market is ripe for manipulation with impunity.

  • The Bitcoin ecosystem has always had trouble converting Bitcoins to something more useful. Most of the ways to get money out of the Bitcoin system involve multiple intermediaries, payment rate limits, delays, and finger-pointing between the intermediaries when the system breaks. Mt. Gox finally, as of June 26, 2012, started offering wire transfers out of their system.

    Mt. Gox is in Japan, which allows non-banks to operate money transfer services. [sidley.com] This is a new law from 2009, and specifically addresses e

  • The first post of Bitcoin was about creating a credit/ATM card. The original story mentions MaterCard but this is to explain how widely used the card could become. This had nothing to do with actually cutting a deal with MaterCard from them to make the card or be involved in this project. Obviously they would not be involved because they cannot hoard the money to themselves. And they rates of the card from MaterCard fees would pretty much kill the idea. I questioned the idea of BitCoin creating a card becua
  • http://blog.bitinstant.com/blog/2012/8/22/public-statement-regarding-the-bitinstant-paycard.html [bitinstant.com] "BitInstant’s partners, who are issuing the card, have been working with MasterCard for many years, and the specific relationship will be between these partners and MasterCard (not directly between MasterCard and BitInstant)."

"Our reruns are better than theirs." -- Nick at Nite

Working...