Friday, July 30, 2010
I was surprised to note the continual downward trend of fraud figures reported by PayPal (see graph [includes some interpolation]), including their recent figures of 0.18%, which is about 1/3rd less than comparable figures with Visa/MC. This is one of the obvious value-adds of closed-loop payment schemes. PayPal is an example of a [dominantly] closed-loop scheme, in which the merchant and the consumer use PayPal for payment, thereby making it easier for the scheme provider to detect fraud.
Saturday, July 24, 2010
Features of a typical scheme include:
- Retail (Debit, Credit)
- Other payment networks (Postal system, Rural, Cooperatives...)
- Connectivity / bilateral agreements with other schemes (primarily 'international'), primarily around card acceptance
- Connectivity / bilateral agreements with international banks (primarily 'international') primarily around card acceptance