Of most interest are the publicly published internal rules of the Visa and Mastercard payment systems for the first time. Despite the fact that formally the rules are the same in all countries, in reality they differ in the West and in Russia in small but fundamental details.
A little theory. In economics there is an equation of exchange - this is an equation that describes the relationship between the money supply, the velocity of money, the price level and the volume of production.
M * V = P * Q
where: M – money supply; V – velocity of money circulation; P – price level; Q – volume of production of goods and services.
Everything is logical here, the faster an entrepreneur receives his money, the faster he invests it in further production, which means that either the price level or production increases. With normal economic development, production naturally increases.
How do cards affect the speed of money circulation? It’s very simple - the more non-cash payments, the higher the speed of circulation of money. Of course, this is not the only criterion influencing economic growth, but nevertheless, the higher the percentage of non-cash payments, the better.
In our legislation 161 Federal Law “On the National Payment System”, there is a serious problem - namely, only one day to challenge a fraudulent payment. I didn’t have time, I was in another country - your problems.
It is interesting that in the original American Fair Credit Billing Act, adopted back in 1974, the cardholder is given 60 days to challenge an “error in the payment statement,” while the very concept of “error” is much broader. This is not only a fraudulent payment, it is also an undelivered product, a product of inadequate quality, a service not provided, etc.
Of course, American legislation was reflected in the rules of the American payment systems Visa and MasterCard. The same Visa in the USA openly declares zero liability of the card holder. Did you know that if you received a service of inadequate quality or you did not receive the goods, the store refuses to return it - you go to your bank and ask for a return. That’s why in American TV series, if someone doesn’t like the delivered product, they simply return it to the courier and call not the store, but the bank - after which they give one of 10 official reasons for refusal and automatically cancel the payment. If you have tried to return something to Russia, you will appreciate the difference.
If in most cases it is not difficult to cancel a transfer for undelivered goods, then most of our banks simply do not know how to return money due to “service not provided.” And here is the dilemma - there is nowhere to complain, because you are not a participant in the payment system. And the legislator has completely forgotten about you. Although, the sooner you get your money back, the sooner you will buy the product in another store. This also affects the speed of circulation of money.
That’s why Bitcoin won’t take off and it will never become a global reserve currency like the dollar. Of course, the Fed will not let this happen. But there is another more serious problem - this is the inherent finiteness of Bitcoin emission.
From the same money supply equation (and from ordinary logic) it follows that the economy should grow along with the money supply. Banks issue loans with which to create a new business or grow an old one. Cryptocurrencies in the form in which they currently exist will not become a full-fledged means of payment. It's just a product of hype.
That is why there are no cryptocurrencies in the book, although in my ignorance I considered them to be a full-fledged electronic payment system. It is interesting to look at the world through the eyes of credit giants.
A little theory. In economics there is an equation of exchange - this is an equation that describes the relationship between the money supply, the velocity of money, the price level and the volume of production.
M * V = P * Q
where: M – money supply; V – velocity of money circulation; P – price level; Q – volume of production of goods and services.
Everything is logical here, the faster an entrepreneur receives his money, the faster he invests it in further production, which means that either the price level or production increases. With normal economic development, production naturally increases.
How do cards affect the speed of money circulation? It’s very simple - the more non-cash payments, the higher the speed of circulation of money. Of course, this is not the only criterion influencing economic growth, but nevertheless, the higher the percentage of non-cash payments, the better.
In our legislation 161 Federal Law “On the National Payment System”, there is a serious problem - namely, only one day to challenge a fraudulent payment. I didn’t have time, I was in another country - your problems.
It is interesting that in the original American Fair Credit Billing Act, adopted back in 1974, the cardholder is given 60 days to challenge an “error in the payment statement,” while the very concept of “error” is much broader. This is not only a fraudulent payment, it is also an undelivered product, a product of inadequate quality, a service not provided, etc.
Of course, American legislation was reflected in the rules of the American payment systems Visa and MasterCard. The same Visa in the USA openly declares zero liability of the card holder. Did you know that if you received a service of inadequate quality or you did not receive the goods, the store refuses to return it - you go to your bank and ask for a return. That’s why in American TV series, if someone doesn’t like the delivered product, they simply return it to the courier and call not the store, but the bank - after which they give one of 10 official reasons for refusal and automatically cancel the payment. If you have tried to return something to Russia, you will appreciate the difference.
- Charges not actually made by the consumer
- Charges in the wrong amount.
- Charges for goods or services not received by the consumer
- Charges for goods not delivered as agreed
- Charges for goods that were damaged on delivery
- Failures to properly reflect payments or credits to an account
- Calculation errors
- Charges that the consumer wants clarified or requests proof of
- Statements mailed to the wrong address
- Significantly not as described product/goods
If in most cases it is not difficult to cancel a transfer for undelivered goods, then most of our banks simply do not know how to return money due to “service not provided.” And here is the dilemma - there is nowhere to complain, because you are not a participant in the payment system. And the legislator has completely forgotten about you. Although, the sooner you get your money back, the sooner you will buy the product in another store. This also affects the speed of circulation of money.
That’s why Bitcoin won’t take off and it will never become a global reserve currency like the dollar. Of course, the Fed will not let this happen. But there is another more serious problem - this is the inherent finiteness of Bitcoin emission.
From the same money supply equation (and from ordinary logic) it follows that the economy should grow along with the money supply. Banks issue loans with which to create a new business or grow an old one. Cryptocurrencies in the form in which they currently exist will not become a full-fledged means of payment. It's just a product of hype.
That is why there are no cryptocurrencies in the book, although in my ignorance I considered them to be a full-fledged electronic payment system. It is interesting to look at the world through the eyes of credit giants.