People Still Don't Understand Visa

[@glennalexon1530]

It's not "a trick" or "a paradox" that people use a Visa card and don't know about the company's origin. The same is true of almost all common objects.

[@jellytwins1018]

Yeah it's kinda like Band-aids, most people don't even realise that's the company's name not the object.

[@xSerizawa]

Exactly, most people who drive a car don't need to know how a car works intricately such as thermodynamics and fuel chemistry.

[@nialfrancis5728]

Choosing to work together is not socialism either

[@Stacksats21Qunitillion]

That's by design. It was introduced gradually and silently, and it is still being introduced.

[@anti-spiral159]

@@nialfrancis5728 They be like "Ugh, rich people avoiding taxes amiright?" These days and It's like yeah, I would too. And they would too, why don't socialists just donate all excess money to the State if its so good 🙄 A lot of people in the comments are angry at companies for bringing them a service and making profit of making your life easier. Its incredible.

[@Master_Shredtacular]

An interesting footnote at the most modern of credit card history: most credit card issuers track where you shop, what you buy, and your general spending habits. That information is aggregated, and then sold to health insurance companies, among other corporate entities. My Amex has a section on this in the ToS. This practice is illegal in nearly all of the developed world. But not in the US.

[@finalpharoah1]

This is unthinking even in the developing world

[@martin1649]

It's done in the EU too don't worrry

[@KevinFromSouthBoston]

Wait until you find out about the corrupt pharmaceutical/ Healthcare industry. They literally hate you

[@4473021]

The US has the worst (hilarious lack of)privacy laws in the developed world

[@demoncloud6147]

Since when US was developed world ?

[@LeScribe2]

VISA makes around 54 Million USD in net profit per day

[@rtsp]

Amateurs, look how much goverments making on inflation. Amateurs ...

[@Boozley]

​@rtsp how does inflation benefit your government? Maybe another government that your government borrowed from might benefit from your government's inflation. Inflation devalues the currency of the operating government .

[@rtsp]

@@Boozley kzbin.infouFi8NEoXFgg

[@rtsp]

@@Boozley Ronald Reagan Explains How Inflation HURTS Americans

[@hanifarroisimukhlis5989]

@@rtsp Reagan 🤣 You got fooled by an actor. Also that's not the proper answer, total non sequitur.

[@breadman32398]

And now it's become so entrenched in the system that the entire retail economy gives these companies 3% of every sale. Even when there's other payment methods that don't require a fee. Edit: I'm not talking about cash. I 'm talking about other online payment options that don't require fees.

[@phpn99]

This, would create a competitive opportunity IF the capital-intensive infrastructure needed to run these business wasn't such a monopoly. But commoditisation will happen there too, even if it may take decades.

[@danieleverywhere132]

i usually pay cash and if i buy in small store i have chat with owner,pay cash and they are happy to lower price for 3%,they still benefit by getting money immediately

[@RussellD11]

@@danieleverywhere132 they get the money immediately with a card as well. I get direct deposit every midnight for the previous day. And I dont have to make a deposit at the bank. So the 2% fee is almost worth it, for the convenience... Its the 3.5% + cards that are an issue, for me... the reward cards get over 3%

[@falkenvir]

Americans trapped by their own inability to wait for cash.

[@QualityInvest5]

no visa keeps 0.2% of that. Most of that goes to issuing bank and acquriing bank. Usually out of a 2.5% take rate transaction. Visa/Mastercard keeps 0.2% the issuing bank keeps 1.8% then the rest of it is split in a plethora of ways with other parties like the the processor, payment gateway, acquiring bank etc. Visa doesnt issue any credit and only keeps roughly 0.2%

[@arthurn8952]

In fairness, we dont know how most companies that make the products we use were started or how they even operate beyond the service they provide

[@AlirioDaza8]

But we should know. It's important to know how things work and the origin of the things we use all day every day. Doing so allows us to think for ourselves.

[@howardroark6594]

I worked for a credit card processor business for years and years. This video is very good at explaining the process and industry. Almost no one outside of the intdustry even knows it exists, let alone who accepts the risk, who gets the money, etc.

[@nufosmatic]

FDR, Omaha, Nebraska?

[@watamatafoyu]

They're too powerful. There needs to be checks on this. Our culture pushes against industry oversight for some reason, and we keep getting screwed by whales.

[@nufosmatic]

@@watamatafoyu BankBoston switched over from clearing credit cards internally (and they were a very smart shop, but that was probably why it was too expensive to go on) to using FDR. The day came for the switch over on the home banking system (see below). We threw the switch, and thousands of credit cards fell on the floor. This was 1996, and BankBoston (very smart shop) was Y2K compliant... and FDR, which handled 40% of credit card clearances at the time, was not. So VISA cobbled the system together to bypass the problem (temporarily), threw the switch, and thousands of credit card FRAUD fell on the floor (oops). A mountain of paperwork to work through with Treasury...

[@jonathandpg6115]

@@watamatafoyuthere is oversight

[@mrnatram]

Do you think they run a risk of being ousted? I can imagine Apple doing it (Apple Pay, Cash, the new phone-to-phone; it's kinda like a high-tech version of the mobile money that is taking over Africa). Currently they are building on top of Visa/MC but that could change, couldn't it? I mean, Apple could run its own blockchain even.

[@erintyres3609]

For a long time, my parents saw credit cards as something similar to hard addictive drugs. Their concern was that you could easily get into trouble with uncontrolled debt and interest.

[@TavishMcEwen]

My dad taught me never to get into debt and my mom showed me what happens when you do.

[@HimWitDaHair98]

Same people who told us not to believe everything on the Internet. They just can't help but be hypocrites

[@KingAlanI]

Well, they're not wrong. I don't buy on credit, just debit cards as a convenience particularly for online shopping

[@Dragonlord-yb8ch]

@@KingAlanIthe only problem with using a debit card for online shopping is that your money isn’t protected by fraud. If you lose $300 on your debit card due to fraud. That sucks. But if it’s a credit card, you have no liability whatsoever. Fraud protection for credit cards is objectively better

[@DJRIv100]

Credit cards, when used responsibly, can be a net positive. When used irresponsibly, they can be catastrophic. It really is up to you as a person to decide if you are right for one or not. The key is to not treat your CCs like an “infinite money glitch.” They are a substitution for the cash you already have on hand or in your debit account. Pay them off every month, and you will be fine. Don’t and you may never climb out of debt.

[@kiddster2112]

I remember when "VISA" was called "Chargex" before they had magnetic strips - I'm thinking early 70's. They ran TV ads that showed the card and preprinted 3-copy carbon paper receipts going into the manual imprint machine, along with some catchy jingle. The idea was that the merchant would drag a wand across the carbon paper sitting on top of the consumer's card, which would leave an imprint of the card on each paper copy. The merchant would get a copy, the consumer would get a copy, and presumably the merchant would remit the 3rd copy to the merchant's VISA agent to be reimbursed.

[@Oggy187]

Credit Card Imprinter AKA Knuckle Buster. This is still a thing in some cases (at least in EU) for specific cards. Not all shops have this method. If there is no internet/electricity you can still use this method to pay for goods(there is a max amount you can swipe). It is a backup method for paying just like there is a backup method for issuing receipt/invoice if there is no electricity/internet.

[@marcmorin2129]

Operated knuckle Busters for a decade...

[@kenofken9458]

At a business where I once worked, these things were still used into the early 90s.

[@Douken]

That’s not that old. It was still used in the 90’s then it got phased out mid 90’s

[@philc.2504]

Ohh, so this explains why cards have embossed raised digits

[@RussellD11]

Basically a RISK free middleman Cash cow is what it is LOL

[@watamatafoyu]

Offset the risk to everyone else, collect all the gains.

[@andrewerickson6690]

And be covered by fdic insurance

[@louisvl10]

still cheaper for shops than for them to allow for individual credit to clients

[@rcchin7897]

And the more money that flows, the more taxes govt can collect!

[@kelvinfernandez3205]

Not exactly they talked about what they do. Take on risk. There's a reason merchants ran to them in the early days. You're paying into the network of banks.

[@bikepacker9850]

I was pretty impressed with your knowledge up to the point where you said more than 700 countries now support real-time clearance of funds.

[@KenSego]

😂😂

[@PhoenixEncore]

The highest number I could find was 241... 193 United Nations members, 2 recognized as Independent. But one source mentioned 241 counties and territories being recognized.... In short 700 is not a real number. 😂😂😂😂

[@BangkokZed]

@@PhoenixEncore ISO-3166 is the country code classification used for statistical purposes and issuing TLDs (top level domains) it contains 249 codes for countries and territories. In many cases countries have external territories, self-governing territories or special regions and these territories have been recognized as a statistical entity based on the M49 of the United Nations Statistics Division, such as US - Virgin Island US, Guam, Puerto Rico etc. UK - Virgin Island UK, Bermuda, China - Macao, Hong Kong etc. You are right 700 is a big stretch.

[@PhoenixEncore]

@BangkokZed 😂😂😂

[@duluthdjs2588]

He meant to say 200

[@bikepacker9850]

I live in Southeast Asia and they have dumped Visa and MasterCard. Everyone here uses a QR code based payment system that is somehow connected to Chinese Banks. Even the smallest street vendor uses this system.

[@mistersync100]

How is itt called qr code can you tell me more

[@bikepacker9850]

@mistersync100 when they purchase something they just scan a QR code that the vendor displays at the front of the store. They hold the phone up and show the vendor the confirmation of payment. Everyone, even the smallest little street vendor use this system. It's in China Thailand Cambodia Laos Malaysia Vietnam Indonesia.

[@citoxic]

Same in Belgium / Europe.

[@beckybnyc322]

Can you expand on what company this would be

[@GenMcGrievous]

​@@beckybnyc322 CCP 😂

[@ILoveTinfoilHats]

Ok if ask the average person how ANY company got started they probably wouldn't be able to tell you unless they worked the industry.

[@gphilipc2031]

A little Freakonomics: I remember working in my Sister and Bro In Law's Hardware Store in the 1960's. She had an old school mail & receipt spike full of NSF checks from local customers. A good number of the NSF customers were renters who were about to move so they figured they were going to beat the debt and be unfindable, others were small local contractors who got overextended. Then the Credit Cards started making big inroads to the system here in SE Looziana. The 1960's were truly Watershed years in how ordinary folks handle their finances. It worked for a good number of folk but likely Bankrupted many more.

[@macstarr1306]

21:24 motion graphic?

[@houssamalucad753]

The editor missed the note XD

[@rahul9704]

Editor: "I'm not getting paid enough for this"

[@pilotkid2011]

Editor: “nah”

[@rahul9704]

38:15 700 countries?! Does this include those on Mars, Titan, and Ganymede?

[@DavidJames-v1y]

Don't forget that cash transactions have costs as well. For a consumer, walking around with cash is risky. It makes one a target for crime. For retailers, keeping cash in their stores is risky as well. Stores, bars, restaurants, etc., are targets for theft at the register, in the office, and on trips to make bank deposits. There is a cost to this as well: losses from theft, expensive drop safes, security guards, extra insurance, armored car services, constant counting and recounting of cash, and more.

[@ChadwickHorn]

Not to mention that as a retailer, some banks even charge you to deposit cash in excess of certain amounts. Plus the manual aspect of having to move the money or pay a service to do so. As a merchant, I'm completely fine with paying the 2.57% that I do now to cover all of the things that I don't have to worry about.

[@bjk837]

If anyone’s interested the Aquired podcast has a super in depth episode about Visa and it’s FASCINATING to say the least! Totally recommend checking it out

[@bjk837]

Oh and the point about leaving the card at home while at the lavish business dinner wasn’t true apparently 😆

[@spushkin1]

Great podcast, I’ll check out that episode though I haven’t listened to it.

[@haruhisuzumiya6650]

Danny Schechter has a documentary on Credit card bubble called "in debt we trust"

[@ronjon7942]

Thanks, I found that episode, and the show looks right up my alley.

[@bjk837]

👍👍👍

[@conroybogle3713]

I remember when I got my first VISA card. It had a $500 limit. I thought I had just bought a house

[@glitchy_weasel]

Dude, what a fantastic video! Didn't think I would watch all 40 minutes of it, but a couple of minutes in I was engaged. I like your presentation style; again, great job!

[@housecat93]

The words: "just a little, don't worry", are anathema to people actually trying to learn more. Don't worry, John. Don't patronize your audience. We're here for the content, and we love it.

[@Fudmottin]

So Visa is a proof of stake network?

[@claritise]

And the first proper DAO wow

[@osdever]

Yes.

[@SaltyAntelope63]

I've worked for Visa for five years. You've given a better history than anyone I've ever heard.

[@TubersAndPotatoes]

34:34 97.9% goes to the merchant, 1.8% goes to the issuing bank, an 0.1% goes to the acquiring bank and technology provided? Maybe should interview small business owners on what's the true cost of Visa/Mastercard systems. It's never just 2-3% of the revenue stream. Cash is always a good payment method, and some countries have used direct bank transfers as payment methods by scanning QR codes on your phone app. We live in an age of rapidly emerging technologies, and there should be better less exploitative alternatives at much lower costs. Why still charge legacy land line rates when everything is VOIP, because they can.

[@lucasblanc1295]

Brazil has the PIX payment method, it's managed by our central bank. They handle millions of instantaneous transactions daily and it can also add complex metadata to transactions (User message, company and user info so you know to whom you're paying, invoice data, tables of information, etc) , and it has zero cost for the merchants and consumers. VISA/Mastercard should be phased out eventually.

[@flamesintheattic]

@@lucasblanc1295 A government monitoring transactions is the last thing you should ever want.

[@jonathandpg6115]

it really is only 2-3% for visa/mastercard. you can even get powerful terminals that will give you a straight fee between there for accepting cards and will usually add in some free software you can use. Cash is not a good payment method. It sucks and is outdated. What's better than having your bank directly let you use your cash? Like a lot of this doesn't make sense.

[@BunkerStrategist]

1) as has been stated, it really is just a 2-3% fee. If the business owner thinks it's a lot that's on them. 2) the alternative to this is spending way more than the 2-3% to move around, protect, and check/monitor the physical cash. 3) that QR system sounds extremely insecure. If it's on your phone it's a really easy way to get hacked, which is why it's not as popular in the US. We have all that stuff.

[@redvillatutorials]

38:14 Did you just said 700 countries? 😂

[@SubhradeepChatterjee]

Came to see if it was just me!

[@dhirajgede]

I replayed that about 3 times, just to make sure XD

[@Felix_Tpr]

I checked maybe 5 times and than checked Google if the "around 200" in my mind were that off

[@kylone1]

Is that number was for financial jurisdictions? (Counties and States / Provinces together in a list). A sight research miss.

[@kevikiru]

Mate, did you say more than 700 countries at about 38:10? I do not know if you intended to say more than 70 countries and slipped, because it can't also be governments even counting regional ones.

[@ronjon7942]

Yeah. 70 definitely. I recall growing up in the 80s, there were once 72.

[@rustomkanishka]

He said 200 countries. Two hundred.

[@LukeThomas00000]

Came here to say this!! 700 seems like a lot for this planet

[@ZackKo]

​@@rustomkanishka he definitely said 700 at 38:15

[@Dr_Larken]

I don’t understand I mean 700 countries. Make sense if you don’t think about it! lol The crazy part is most people nowadays are TikTarded, they don’t even know how many countries they are! Especially in America!

[@keineangabe1804]

Can we talk about the fact that you could be a banking manager without a university degree?

[@TreeStump-and-CheeseKetchupIT]

I've made a horrible mistake.

[@ryanreedgibson]

I don't run CC transactions. I have a client fill out a check and take a picture. I then represent the check to their bank. Sure, it takes a day or two longer, but I don't get charged a fee. Our lowest charge is 10k, so those fees add up fast.

[@codegeek98]

Yeah, checks are awesome whenever the customer and merchant actually trust each other. I consider the payment processing fee the "cost of low trust", with chargebacks and the nondisclosure of my checking account numbers the killer features

[@PrograError]

Check's dying soon... the banks in my country already stopped issuing it.

[@ian9outof10]

So you don't get charged for banking? There's no cost at all to depositing cheques at your bank, as a business? What happens if someone passes you a dud cheque, what then? If you don't need the protection of a card network, then sure, it makes sense. But for a lot of retailers/service providers, that risk is too great - especially online.

[@codegeek98]

@@ian9outof10 “Our lowest charge is $10k”, presumably he's doing some identity verification on the customers?

[@diablo.the.cheater]

in my country checks are illegal and considered fraud.

[@hellsfirefreedomtube6984]

One of my core beliefs is NO CREDIT CARDS. I’ve seen my parents having trouble with their credit cards for a few years when I was a kid

[@jean-francois5505]

You should stick to it, I had a try years ago, and didn't end well, specially when you have a bad turn. 2020 deliver me from that trap, but I still have 1k to repay now.I had share the same mindset you got untill the internet market and special offer, push me to get into it, big mistake I make then. Now I use only debit, cash and credit I put myself on card.

[@sCiphre]

That's pretty unfortunate, since credit is one of the secret weapons of the rich. Credit doesn't get taxed, which makes it very useful.

[@link1565V2]

They're only bad if you don't know how to use them. The problem is that people spend money they don't have. In reality, you only spend what you physically have in your bank account. That way if things do go wrong, you can instantly pay off the card and cancel it. Always make sure you pay off your debts in time and you won't get charged interest. It essentially means that you get to spend your money, while still being able to keep your savings in an offset account or high interest account. By doing this, you also get points which you can claim on many things. Personally I use those points to buy fuel gift cards. Unfortunately many just see credit cards as free money. Which it isn't. And used improperly you can find yourself in trouble. But used properly you actually gain money for doing what you're already doing.

[@WarlordEnthusiast]

That's a stupid idea for a few reasons. Mainly you need to build up a credit history if you want to get money from a bank, for example a mortgage. Credit cards are only bad if you use them incorrectly. If you want to use them safely whilst building up credit passively, for example use it for your Netflix subscription or any other subscriptions for that matter. Then just pay it off on time and you'll never have any problems whilst helping yourself in the future. Credit is one of the biggest tricks used by rich people, did you know most billionaires don't actually pay for anything with money? There's special banks that offer 0% interest loans for rich people, they use these loans to pay for stuff because most off their own assets aren't liquid, its usually in the form of bonds or shares in a company that can't be spent.

[@whateverrandomnumber]

​@@sCiphre interesting. Could you elaborate on that?

[@theohallenius8882]

So that's the time everyone got sucked into debt.. got it!

[@oliverszollosi470]

exactly, i was also surprised about the overly positive tone when describing how they were sending out credit cards to people who had no idea how to deal with credit and calling advertising “education”.

[@johnp139]

Just the irresponsible people

[@ItsCoderDan]

you gotta admit VISA was genuis and single handedly revolutionized the worlds economy. it did so much good i’d say the only issue is lack of competition for visa. no one can hold them accountable for high fees for example. they where simply ahead of their time without visa the world would likely be several decades behind in terms of transaction processing. this is one of the few corporate conglomerates you can argue was for the most part made ethically and “earned” their spot. their business model too is just genius like their profits literally goes up with inflation

[@syed_mamoon99]

2:18 That basically explains why current accounts are called "Checking accounts" in the US.

[@realSamAndrew]

Where's the explanation?

[@coleball6001]

No, it doesn’t. Checking accounts are called checking accounts because they can issue checks. Not because charge cards are a thing.

[@captainleisuresuit]

I'd never thought about the checking vs savings account until I traveled outside the USA, and learned that in some countries the typical consumer account isn't separated into checking/savings. It's one account for all transactions.

[@bufordhighwater9872]

A checking account is a type of bank account that allows the account holder to write personal checks as a method of accessing the money in the account. Checks are basically a method of authorizing someone the limited ability to withdraw an authorized amount of money from the check holder's checking account. It used to be that only banks issued checks which could be used to withdraw money from savings accounts.

[@realSamAndrew]

@@bufordhighwater9872 none of these comments address anything about HOW using "checking" for current accounts is explained in the video. Something the viewer imagines but not explicitly covered doesn't count.

[@MrJonyish]

16:04 you described an oligarchy or oligopoly not socialism

[@lunakid12]

Neither, actually.

[@MrJonyish]

@ crony capitalism then? how would you describe those designed to be competing in business colluding to ensure artificially high profits? I feel that has to be an oligarchy if not an oligopoly where those who are in buisness collude. I mean this has been rebranded as synergy?

[@tuapuikia]

I use Visa and Mastercard debit cards. I only use credit if I want to pay later. The most important thing is that I use cards that don't charge processing fees and other nonsense fees. Remember, banks already make money every time you spend, and you shouldn't pay them to maintain their Visa/Mastercard network.

[@TonyFisher-lo8hh]

Banks still charge the merchants for any card transactions.

[@tuapuikia]

@TonyFisher-lo8hh some merchants will pay the additional charges, some will ask the customer to absorb the charges by adding it to the total bill. In Singapore, it is illegal to ask customers to absorb the extra fee if the final total bill is not reflected in the receipt 😁

[@ChadwickHorn]

​@@tuapuikiabut you're missing the point that the only fee you will be charged as a consumer is interest, if you haven't paid it off at the end of the month. The merchant is still paying the transaction fee regardless of if you use a credit or debit card.

[@leegalen8383]

Amazing video! I'm 68 and watched credit cards expand and grow but never knew how it all got started.

[@illuminoeye_gaming]

As much as I hate credit cards, it's still impressive how effectively the system was designed.

[@b2-mani]

He's back, baby! The greatest storyteller... after such a long time!

[@tengkualiff]

37:00 and his insistence of a duopoly being bad for the industry was very much the reason why UnionPay (China's version of this) surpassed both in total.

[@jgg204]

Credit cards are leeches. Cost of goods and services would be LESS if we went back to cash. People think getting 1%-5% cash back they are making out, they are not. Retailers have simply raised the prices to cover the costs

[@flamesintheattic]

Because cash is convenient? You have to go a bank to get cash, over and over. Does that work at midnight on a sarturday? What about in the middle of nowhere with the nearest bank 50 miles away? What about paying for something online from a company in France? Cash is not free and not as useful as you say.

[@ahora1026]

@@flamesintheattic he prolly doesnt mean just paper cash but opposing credit system. do you know these interest based economy is forbidden in islam? simply because they derails the economy when people starts depending on it. sure go live on what you dont have on the name of convenience.

[@ahora1026]

these western economy are just total scams. everyone knows it but they just so addicted cant control themselves from something that should so basic. westerners profit 9$ from a product that takes 30cents to make and its just fucked up. entrepreneurs founders billionaires mega companies an unicorn born every other month, people pouring money pump pump pump take big profits to stay on radar and cover marketting and 50 middlemen ff

[@jgg204]

@@flamesintheattic Your low effort argument did nothing to disprove the fact that your cost of goods and services includes credit card fees thus making EVERY purchase more expensive by on average 3.4% and in some cases as high as 5%. You can buy things online via ACH which costs $0.00 in fees.

[@lowstringc]

Which is why paying cash is a losing battle.

[@trod5902]

i just dont get why this channel isnt bigger. your videos are always top notch, every single time

[@ryanpetersen]

Fantastic video I laughed out loud learning Bank of America was once called the Bank of Italy

[@warpspeedscp]

UPI's introduction in India quickly tanked Visa and Mastercard's adoption rates here. And Rupay is already eating at their share too.

[@PrograError]

It's just a lot easier to use and issue. Plus, it's a debit first system. It probably would succeed in Africa if not for the lack of electricity and internet access in many places.

[@kishorgartaula1446]

before this, I didn't know how banks operated with each other or even what sort of role VISA paid in maintaining cross banking systems. Seriously a mind-boggling watch for someone without a finance background. Appreciate your work to bring this gem of a knowledge out, john! Learned something new and crucial today!

[@mcgreedz]

Is there a version of this without music, perhaps an unlisted one? Some of us are weird and can’t focus on spoken words when there’s music vying for attention.

[@jg9301]

I second this

[@AndrewKoala]

Some presenters are so intensely brainwashed by the millions of advertising jungles they have been subjected to - like Pavlov's dogs - they have become brainwashed an d have this need to play music during their presentation - which detracts from the value of the presentation. These people are so easily brainwashed / indoctrinated - perhaps they should concentrate on a music channel to satisfy their appetite for music.

[@lumberjackdreamer6267]

Yes, I’d like that too. Background music is annoying

[@ramajyello]

I've learnt to tune it out automatically. I didn't even hear it until I saw this comment

[@kmsberserker3330]

Mute and put on subtitles

[@JonRonnenberg]

This is the first time I hear the VISA story. Thank you for making this video. Only I don't think you are right that customers don't like to pay with crypto, it's that you can not pay most bills with crypto. At my job, we manage payments of utilities for seven hundred people, and at that volume it has become clear to me just how much VISA is taking when people opt to pay us with VISA card. But crypto is not an option because we can not pay the bills with bitcoins.

[@Sharon-d8z8g]

aigotvisa AI fixes this. People misunderstand Visa, entrepreneur writes.

[@IamP3ngu1n]

"The flywheel has been spinning for decades..." Leave us not get misty-eyed. Very informative...thanks for the post 👍🏻

[@sardoggy]

Oh my gosh, I grew up in Fresno and never knew❤ this history. Thank you for making this. Awesome job

[@SacredForest347]

Advice to the youngsters: never load yourselves up with debt. Make it a point to never owe anyone anything!! ❤

[@MirzaAhmed89]

37:08 not sure what Hock was on about. Competing payment processors and card issuers did emerge after Visa and Mastercard, most notably Discover (in the US). Discover and Amex both issue cards directly to consumers rather than through banks, so what's the issue here?

[@sbjchef]

payment cards are one of the greatest cons of all time, at a fee of 3% every single Dollar that is spent 250 times belongs to a card payment taker. They managed to commodify the act of using your own money.

[@WarlordEnthusiast]

3%? Wth kind of card are you using that charges per transaction, most cards just have a monthly account fee.

[@sbjchef]

@@WarlordEnthusiast every single card transaction charges the merchant a processing fee of around 3% which you pay in inflated prices

[@juststev5580]

@@WarlordEnthusiast John Coogan did break down the cost of the fees involved in one transaction. It's in the video at around 34:06 , the fees work out to be about 3%, VISA making about 0.2% of that

[@flamesintheattic]

Go ahead an buy something from online from let's say.. Germany.. with cash. See how well that goes for you. Credit cards are a service that greases the wheels of global commerce. Without them many things would be difficult or impossible. Don't be so obtuse.

[@WarlordEnthusiast]

@@sbjchef I buy alot of stuff online now because its cheaper than buying it in person with cash. If anything buying stuff with cash is more expensive than card. Unless its something used, then buying it online is the way to go. Also, your "explanation" doesn't explain why a product costs the same in a store if you use cash or card.

[@SamGarcia]

As someone who is new to the merchant services industry, this is some good stuff.

[@AlanTheBeast100]

When I owned stores, my one great pleasure was not accepting American Express.

[@zuzuspetals9281]

My mom’s first job was working for BofA at the original office in SF in the late 1940s. My first credit card was a BankAmericard and I was disappointed when they changed the name to VISA, but learning the reason for the color choices of the logo makes up for that. I now live in NC and appreciate your video as I never quite understood how the card became separated from the bank itself. BofA is nothing like it used to be, I knew it wouldn’t be when they left SF for Charlotte.

[@SpadeEspada]

1. "He was a capitalist" what's the purpose and use of this reference? What useful information does it provide? How is that info relevant? 2. How is,"member ownership" & member input on organization Socialism? How would join a group where they will have no input? (Joining the armed services or getting job is not applicable) 3. Clearing houses were first proposed in 1636 by Philip Burlamachi, financier to Charles I of England. So an ACH isn't a new thing, but a novel system doing an old thing. ...

[@PrograError]

Nothing is old, nothing is new. Just reinterpreted.

[@BlumpkinSpiceLatte]

I noticed that too. I can't be the only person who is getting annoyed with people misusing the labels of capitalist and socialism to mean "guy that wants all the money" or "guy that works super hard/bootstraps" and "literally anything that involves input of more than one person" respectively. Our school system has failed us in many ways, but one major way is the potato-for-brains way of looking at everything as "capitalist = the bad thing, socialism = the good thing" even when there is no relation at all.

[@The_Nubian_Gamer]

38:14 "Today, more than 700 countries ...", there aren't that many countries in this world.

[@marcus1851]

Proof that John is not of this world...

[@johnp139]

You are missing all of the countries in the Star Wars universe. Those places that don’t accept Republic Credits DO accept Visa!

[@mikeevans1445]

I’ve missed your deep dive videos! Keep it up. Such good value

[@SylvesterAshcroft88]

The security it offers is worth it alone for all the extra fees we pay, especially with all the issues i had with Solo in the past, which was a debit offshoot of Mastercard.

[@MukiBlalock]

What's crazy is that even though i was homeless and unemployed at the age of 18 I was sent a pre-approved CREDIT CARD! WTF?! ARE THEY (THIS WAS IN 2001) SO DESPERATE TO PUSH PEOPLE INTO DEBT KNOWING THERE WAS NO WAY I COULD PAY?!?!😂 I NEVER USED IT. THOUGH LOOKING BACK, IF I HAD, I WOULD'VE USED IT TO PURCHASE A CELLPHONE. THEY (the cellphone companies) WANTED A $500 DEPOSIT AND LIKE $100 A MONTH, PLUS A TWO YEAR OBLIGATORY CONTRACT! YEAH RIGHT! I'M GLAD I DIDN'T GET SUCKED INTO THAT 🐂💩!😂🎉😮😢

[@watamatafoyu]

I get approved for credit even though I owe more per month than I currently make 😆 They're asking for trouble, but they'll get bailed out while we get screwed.

[@xfom4008]

Well, m8, this was 2001, the banks between 2000-2008 worldwide lived in a parallel reality, things arent as crazy now in most places. And let's be real - giving out credit cards to people who don't have a job isn't exactly an insane business decision if you are really careful with the limits and who you give it to. And having a credit card is something that can bail you out of tough situations if you use them properly - if you don't have a job you will be spending some time applying and during that time you'll need to keep yourself clean and presentable and fed. Obviously you want the banks to offer such credit cards at very low credit limits to avoid bankrupting themselves and the citizens, but it's not the end of the world.

[@kevinbear5]

this video made me realize why everything so expensive now. the debt incentives the companys to raise and price gouge.

[@ElevateAlliance-u9q]

One of the challenges Visa faces lies in its technology infrastructure. Much of the core technology powering Visa relies on Assembler, a programming language that was widely taught in universities in the 1980s. As experienced, long-standing employees retire, the pool of staff proficient in Assembler naturally declines, presenting a concern for the future. Visa’s main processing engine operates on mainframes housed in bespoke data centers, another legacy of the 1980s and 1990s. While IBM has signaled a shift away from mainframes, Visa remains reliant on them for critical operations. Its no coincidence that Visas tech management team is also a product of the 80s and 90s processes and management style. Visa remains a strong, cash-rich company with the ability to sustain its investment in this established technology and the talent that supports it-for now.

[@TheTransitmtl]

Assembler is not a thing. Assembly is a low level programming language. You have no sources for anything you say

[@jonathandpg6115]

this sounds like you don't know what you are talking about sorry.

[@thiswillprobhrt]

IBM continues to make mainframe solutions and the move from legacy code is well underway. Luckily the requirements are very well defined for any code that needs to be refactored from scratch. Having legacy code programmers on hand definitely helps with the transition, but it’s not a showstopper.

[@wingdo60302]

At the 38:10 mark, you say there are over 700 countries support real time payments. I feel you may be exaggerating the number of countries supporting real time payments.

[@ryanreedgibson]

Without a growing middle class, and Trump being elected now we're screwed.

[@fidikvien7682]

Always makes me wonder just how much, if any of that old mainframe code is still in use.

[@jacobgasser3093]

I wish everywhere would just allow a 3% discount for cash. I’d much rather save myself and businesses money than support any processor

[@adrianasoldevila630]

They give a discount in Mexico when paying cash

[@asdfghyter]

I think the Visa Mastercard duopoly forbids merchants for taking out a fee for card payments. this is why many businesses instead choose to not accept card payments below a certain sum.

[@benbailey5685]

@@asdfghyteractually in many countries it is a legal rule to have no fee for card payments, and even in some places a minimum card purchase level is banned

[@blueradiator]

Thats.. why india is building a govt owned seperate network .. rupay ..

[@SwordQuake2]

38:15 700 countries... yeah, right

[@pastorcoreyadams]

Great documentary, John. Learned a lot that I did not know before. Keep it up.

[@CrackingCloche333]

Dee sounds like a genius - going to read his books! Thank you so much for putting this together

[@jamesenlow9401]

Hey John. Loved the video! It was a great watch. The closest thing I've come across that aims to unseat visa would be Flexa. It utilizes decentralized collateralization and blockchain to provide instant settlement. They've partnered with a number of the largest POS companies to integrate directly into merchants existing hardware. Would love for you to give them a look and share your thoughts!

[@haruhisuzumiya6650]

VISA like Diners club started as an chargecard underwriter

[@AlanTheBeast100]

VISA has aspirations to have merchants completely go cashless such that all transactions go through them - and they would shave a slice of a penny off every dollar going through.

[@TonyFisher-lo8hh]

I missed any mention of how Visa and Mastercharge are now processed as a single system. It seems that just the names on the cards are different.

[@ian9outof10]

Because that isn't accurate. Visa, Mastercard and Amex all run their own networks. You might be thinking of payment processors or acquirers which handle any transaction from any scheme the retailer opts to use. Those transactions are then managed on the individual card networks.

[@TonyFisher-lo8hh]

@ian9outof10 When paper vouchers were used ("zip-zap machines") the identical stationery was used for both cards and processed through a central clearing bureau. Today the transactions are processed on-line by the individual banks (data connection from the retailer's cash-register terminal), so the clearing bureau has fallen away.

[@sajaldua]

38:16 more than 700 countries?

[@mrmo3379]

Americans can't count

[@luizcastro5246]

that's a new record!!!

[@renocence]

I also thought that might be incorrect.

[@JarKo880]

over 500 of them are USA, than there is also China, Russia, Mexico, Texas and those others small ones like Europe etc.

[@johnp139]

Throughout the 24 continents.

[@campkohler9131]

A 200’acre ranch WEST of Silicon Valley? Either it’s In Hawaii or it’s in the ocean.

[@SamMoffatt]

Google "301 ranch road west pescadero" and you'll find a bunch of references to it; there is a bunch of farm land on the west side of the Santa Cruz mountains

[@nbrosna1]

It feels like someone accidentally uploaded the work print version of this video. Still very interesting content tho.

[@ian9outof10]

Motion graphics?

[@KamikazeCommie501]

All these years later and nobody took this guy's advice. Sure they implemented his ideas but that was only because he was lucky enough to be heard. The top down system is still stifling the vast majority of human creativity.

[@practicaluseof]

Just discovered my new favorite channel.

[@Mysticsam86]

@38:17 you say "today more than 700 countries ,," think we are little under 200 countries on this planet. Like circa 193 maybe.

[@worldstar907]

over 2% fee on every single transaction is insane

[@UCQmxWH9e2sMpQMAFOiKdojw]

Not crazy if you don’t have customers because they don’t have money to borrow

[@123moe]

Kinda, but shops get a lot for that 2%. Obviously some of it is profiteering, but a 2% per transaction fee is easily absorbed into the general cost of business when it gives you 1) a huge customer base, 2) is divided up between all of the companies that sit in between, 3) allows retailers to keep the money from stolen card payments because the banks absorb that cost instead, and pay for it with the fee, and 4) removes/reduces the stress of handling cash (miscounting, fake bank notes, deposit fees, and time to deposit if you're a small business that takes cash to the bank directly, fees for armoured cash pickups if you're a big company)

[@jasondashney]

@@123moe exactly. Many people think that every penny a business takes in is profit.

[@leonardoaubert]

@@123moeall backed up by ever growing inflation and 90% of purchasing power lost since the gold standard was removed and the Federal Reserve was created by foreign (Zionist) investors. Big win for capitalists at the cost of the people

[@thiswillprobhrt]

2% is pretty low too. For smaller vendors or those with “high risk” transactions it can be 3-4% Stripe is a common example. Their rates start at 2.9% + 30c for each transaction. More volume will get you a lower rate.

[@PetesGuide]

Tile says VISA, thumbnail has an American Express Card in it, and the opening ad I’m fed is for Wells Fargo. Bet you didn’t know that Mr. Wells was the President of American Express and Mr. Fargo was the Vice-President of American Express. The two founded Wells Fargo & Co., Express, because all the other directors of AmEx voted against their proposal to expand American Express package delivery to California during the Gold Rush. Both were literally the UPS & FedEx of the late 1800s.

[@simonvh7092]

32:15 what's going on with the horizontal chops?

[@aquaticontent]

38:14 "today, more than 700 countries... support real time payments" I'm no political geography expert but I'm pretty sure there are not more than 700 countries... typo on the teleprompter?

[@BUILTDIFFERENT25]

Only way I can get a piece of their pie is by buying its stock, unless the DOJ does something about this like Mastercard too

[@mRahman92]

At yet, Diner's Club got bought out by Discover Bank

[@mikevandenboom5958]

I remember when visa was called Chargex. "Will that be cash or Chargex " it was in Canada anyway.

[@Lephostri]

Bro literally vanished from my feed, good to see your content again

[@adelleinne]

dude i love this kind of education, keep it up! 🎉

[@frankzeppelin]

18:38 I realize that this is stock footage but the prior shot is the Capitol building in Washington, whereas this shot is of the iconic JAF post office in New York. It has the Corinthian colonnade, and also the unofficial creed of the U.S Postal Service: "Neither snow nor rain nor heat nor gloom of night stays these couriers from the swift completion of their appointed rounds". True, it is a government building, but I don't think the post office has the power to break up trusts.

[@AS-np3yq]

Oh my gosh, just after Holy Mass. You helped me A LOT. I will come back to you... :)

[@Maureen-MO]

That was pretty fascinating. His creation is very central to the market today and especially to the fast building society we living in.

[@rodenti]

In Canada the majority of debit transactions go through the Interac system, which is independent from Visa or MasterCard.

[@PrograError]

In Singapore, it's via the NETS network, a local Debit network.

[@iggytse]

I find it ironic you can pay off a Buy Now Pay Later card using a Visa credit card which means you can extend the interest free period. You can’t even use eft like PayPal does to pay directly from your savings account.

[@nostrislife]

Over how many countries? 😮

[@cinhh]

16:04 your view on Socialism and Capitalism is DEEPLY FLAWED.

[@polarnaut9645]

Yeah, I didn't hear anything indicating the public ownership of the means of production and distribution of goods.

[@KavyanshKhaitan]

29:45 If you are from india, you know that D just expained UPI.

[@varunkryadav]

Great Video....Just to note there are already two rivals in making for VISA and MasterCard....you will truly realize it in a decade.

[@dexterpapa2]

Cool vid, but PLEASE avoid using AI Slop like you did in 5:48. At least pay a graphics designer to clean up/edit the text so that it looks proper.

[@BallyBoy95]

Tbf, if it's used sparingly, I can deal with it. But I know what you mean, some videos use AI for the whole video and it ruins the whole thing for me. I can't tolerate it.

[@m3talh3ad18]

I don't mind seeing it. It's not a great dealbreaker for me I guess. Just a 10 second image that an average viewer doesn't give much thought in to but provides more depth in to his script. Oh and btw there's more AI images if you look more in to it, it's not just the one you mentioned.

[@SubSkrub]

Dee Hock is like the Oppenheimer of money. He had some great ideas that led to a paradigm shift in society, but also created something that caused way more harm than he probably could have predicted

[@Wire.scientist]

Ok good now do a video on the Revolutionary UPI (Unified Payment Interface ) that Govt. Of India produced

[@urooj09]

Many countries have the same system so idk if we can call upi revolutionary

[@4tarsus]

@34:20 - The issuing bank also bears the credit risk, i.e., potential non-payment by the customer of the credit being extended. This is greater than the fraud risk. Of course, the issuing bank also earns interest income from customers who don't pay off their balances each month.