
Fighting the (credit card processing) System - pitdesi
http://www.cmu.edu/homepage/society/2011/summer/fee-fighters.shtml#
======
thinkcomp
This is something I feel strongly about.

At my company, we have spent the better part of the past month fighting the
credit card system, but not by encouraging merchants to use it as FeeFighters
does. We built a new processing network from the ground up
(<https://www.facecash.com>) that costs far less per transaction than the
standard interchange--and then lobbyists for Western Union, American Express
and others changed the law in California to make it virtually impossible to
get a money transmission license without $2 million in funding for the
California requirements alone. At least well-funded one payments startup shut
down in April, several are now risking criminal prosecution by not complying
with the law, and only one so far has been able to afford to apply for a
license.

We can afford to apply, but because the DFI makes up the rules as it goes
along, we are basically guaranteed not to get a license.

Consequently, I wrote this...

[http://www.quora.com/Aaron-Greenspan/In-Fifty-Days-
Payments-...](http://www.quora.com/Aaron-Greenspan/In-Fifty-Days-Payments-
Innovation-Will-Stop-In-Silicon-Valley)

...and this...

[http://www.quora.com/Aaron-Greenspan/In-Thirty-Days-
Payments...](http://www.quora.com/Aaron-Greenspan/In-Thirty-Days-Payments-
Innovation-Will-Stop-In-Silicon-Valley)

...and this...

[http://www.quora.com/Aaron-Greenspan/Why-Im-Furious-with-
Sil...](http://www.quora.com/Aaron-Greenspan/Why-Im-Furious-with-Silicon-
Valley)

...and this...

[http://www.quora.com/Aaron-Greenspan/The-California-Law-
That...](http://www.quora.com/Aaron-Greenspan/The-California-Law-That-Should-
Send-The-President-and-Fellows-of-Harvard-College-and-Every-Private-
University-To)

I've been in touch with multiple California Assemblymen, the chief consultant
to the California Banking and Finance Committee, the staff director of the
California State Senate, two people at the U.S. Treasury, and one person at
the newly-formed Consumer Financial Protection Bureau.

They want to hear from you. If you're interested in voicing your opinion, send
me an e-mail (aarong at thinkcomputer dot com) and I'll get you in touch.

Disruptive change requires actually disrupting a system. That's what we've
been doing, but as long as it's illegal, the banks will be able to hold the
public's money hostage. Given the state of the global economy that is not okay
with me anymore.

------
abalone
Isn't it fitting that the comments on a post that's just about plugging the
poster's own startup are all just about plugging the commenter's own startup.

~~~
grimen
In fact I deleted my reply now. ;)

------
consultutah
It is great to see all the new payment processing start-ups sprouting all
around. It's definitely time for someone to give paypal and authorize.net a
run for their money.

One of my apps, <http://JungleBlaze.com>, tries to democratize selling
downloads on the web and make it "as easy as sharing a link".

~~~
tzs
You don't need to turn to start-ups to give PayPal and Authorize.net a run for
their money. Merchant e-Solutions is pretty good, and is a big established
company, rather than a start-up. Good rates, easy to use API, they support the
VISA and MC updater services, and you can use multiple business names on one
merchant account (many places require separate merchant accounts for each
name).

Edit: why was this down voted?

