AMEX, VISA, MASTERCARD going bust?
Discussion
Got a quickone here - What would happen if these 3 went pop?
Essentially VISA & Mastercard are clearing houses - they earn from every transaction and the bank that issued the visa/mastercard takes the risk of the credit card debt.
AMEX is an American bank i.e. you cannot get a RBS AMEX its AMEX only - so that would need the bank to fold.
Would it mean an end to web sales?
Essentially VISA & Mastercard are clearing houses - they earn from every transaction and the bank that issued the visa/mastercard takes the risk of the credit card debt.
AMEX is an American bank i.e. you cannot get a RBS AMEX its AMEX only - so that would need the bank to fold.
Would it mean an end to web sales?
bigTee said:
it would mean the end of the world as we know it.
Its an interesting question.Clearly all of a sudden every purchase would have to be cash out of your current account. If you dont have the cash tough you cannot buy it. Want a loan.... really what a silly question no chance of having a loan you missed one visa payment x years ago so you have a bad credit rating, wait a few more years save up and ask for aq lesser loan amount and we'll see then.
JRM said:
And whilst we're at it, what would happen if all the petrol companies went bust - surely we wouldn't be able to drive our cars, has anyone in the government considered this?
Oh yeah and what if all the supermarkets went bust overnight, then we couldn't eat either
Depends if they have any short term debt which needs to be paid off. I'd assume they are exceptionally cash rich companies. Frankly currently if I were them R&D spend £0 just let the cash flow in, if any rig has a failure dont bother fixing it keep it offline - you'll lessen supply thus up the comodity price.Oh yeah and what if all the supermarkets went bust overnight, then we couldn't eat either
Oil companies cannot lose - essentially they could be banks themselves/might be in the future.
Welshbeef said:
bigTee said:
it would mean the end of the world as we know it.
Its an interesting question.Clearly all of a sudden every purchase would have to be cash out of your current account. If you dont have the cash tough you cannot buy it. Want a loan.... really what a silly question no chance of having a loan you missed one visa payment x years ago so you have a bad credit rating, wait a few more years save up and ask for aq lesser loan amount and we'll see then.
Quite scary really how we really depend on VISA and Mastercard in our everyday lives.
Plotloss said:
Visa clears trillions of dollars of transactions every day
If they went bust I hate to think what would happen.
Thing is as we are all spending less they are earning less as more & more people are made redundant they cannot spend (interest charges on your credit card debt is for the banks not VISA etc its only transactions where they earn).If they went bust I hate to think what would happen.
More Business's close up or shut down the hatches less business VISA transactions etc etc, I highly doubt it will happen but its a physical possibility.
Who ever thought LB, NR, B&B, HBOS, Deuche Bank, ML Citi etc would all be on their knees.
aclivity said:
Welshbeef said:
AMEX is an American bank i.e. you cannot get a RBS AMEX its AMEX only - so that would need the bank to fold.
I've got a Lloyds TSB AMEX. 
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