The Real Deal on Credit Card Costs From Swipes to Bitcoin

Alright, let’s talk about money moves. Ever wonder why that little piece of plastic in your wallet is costing you (or the store) an arm and a leg? Get a drink, cause we’re about to dive into the wild world of credit card payments and global transactions.

The Credit Card Circus

Picture this: You swipe your card, and suddenly you’re in a three-ring circus:

1. Issuing Banks (the ones giving you credit)
2. Card Networks (think Visa, chillin’ in the VIP section)
3. Acquiring Banks (the merchant’s BFFs)
4. Payment Processors (the tech nerds making it all happen)

Each of these players wants their cut. It’s like splitting the bill at a fancy restaurant, but way more complicated.

Show Me the Fees!

• Interchange Fees: The big kahuna. We’re talking 1-3% of your purchase. Ouch.
• Assessment Fees: The networks’ pocket money. About 0.14%.
• Processor Fees: ‘Cause running those servers ain’t free, folks.

Going Global? Hold onto Your Wallet

Cross borders, and things get wild:

• Currency Conversion: Banks be like, “That’ll be 1-3%, please!”
• Cross-Border Fees: Another 1% for good measure.
• Compliance Costs: ‘Cause following rules is expensive.
• Correspondent Banking: Like a game of hot potato, but with your money.

Why So Expensive?

1. Risk Management: Fraud is no joke.
2. Tech Costs: Gotta keep those transactions flowing.
3. Limited Competition: When a few big players run the show, prices stay high.
4. Regulations: Following the rules ain’t cheap.

Enter the New Kids on the Block(chain)

But wait! There’s a plot twist. Enter decentralised platforms like Boom Wallet. They’re like, “Bitcoin network security? Yeah, we got that.”

How Boom Wallet is shaking things up:

1. Lower fees (bye-bye, middlemen!)
2. Faster money moves
3. Fort Knox-level security (thanks, Bitcoin!)
4. Global access for the unbanked (inclusivity for the win!)
5. Smart contracts (because who doesn’t love programmable money?)

The Bottom Line

Credit cards? They’re like that friend who always orders the most expensive thing on the menu and then wants to split the bill evenly. Necessary sometimes, but man, it hurts.

Decentralised platforms? They’re the cool new kid who knows how to have a good time without breaking the bank. Still young, still learning, but definitely worth keeping an eye on.

So, next time you swipe, tap, or click to pay, remember: there’s a whole world of money moves happening behind the scenes. And who knows? Maybe one day, we’ll all be paying with magic internet money, and these credit card fees will be ancient history.

Stay savvy, Boom Squad!

Image credit: https://unsplash.com/photos/a-cellphone-lying-on-the-snow--RG5keJ1huQ