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Re: Credit Card Security
> > > The model that still works best for me is http:/www.fv.com/tech
> >
> > Reading the fine print proves interesting, however:
> > [ ... ]
> > 2 percent of the sale amount plus $0.29 times the number of
> > transactions plus $1.00
> >
> > This is fine if your transactions are of a reasonably large amount (say
> > over $30.00), and you've priced with the above in mind. If the
> > transactions are in the "pittance" range, however, this becomes
> > unworkable. Its too expensive.
>
> This is a limitation of credit cards in general, not FV. Credit cards are
> not designed to work well with transactions of small amounts.
This is not completely true. Credit card charges are different for differnt
applications. We have very good reasons to expect very low fees for paying
using iKP or whatever the payment protocol that would be adopted by Mastercard
etc.; this is since their risk is lower than with existing methods.
Anybody who really wants to help make sure such a standard looks after the
interests of the customers is very welcome (first step may be to join and
discuss this on e-payment list, see above, and maybe read the iKP paper and
comment on it to the list). We need this to balance the other parties.
> > So, First Virtual comes along and says "Hah, we'll put ourselves in the
> > position to theoretically mediate ALL transactions!" But they're
> > expensive, and someone may come along and do it cheaper.
Of course; they are very expensive, partly since they are wastefully
replicating an existing infrastructure. They are also insecure. First virtual
offers less
than call-back security. I wish them luck in e-commerce, and they do help
alleviate the problem right now, but this is no solution, sorry.
best, Amir Herzberg
References: