How Visa Makes Money Without Lending a Dollar

Visa's network carries trillions of dollars of spending a year, yet Visa has never lent a cardholder a single dollar. The credit, the interest, the risk and the losses all belong to the bank that issued your card. Visa keeps only a small toll on every transaction that crosses its network, and that toll is paid whether a loan is repaid or not. This episode follows the mechanism from the 1958 Fresno mailing of sixty thousand unsolicited cards, through the licensing chaos that followed, to the 1970 decision to hand the network to its member banks and separate it from lending altogether. We look at how interchange works, why competition between card networks can raise what shops pay instead of lowering it, who really funds credit card rewards, why the network became Visa in 1976, the 2008 restructuring into a public company, and what account-to-account systems like UPI and Pix mean for a business built as a toll road. This video explains how a business works. It is not financial advice and does not recommend buying, selling or using any financial product. Chapters 0:00 Introduction 0:22 Four parties and a logo 1:13 A toll on every swipe 2:35 Sixty thousand cards nobody asked for 3:52 A card that stopped at the state line 4:46 The bank that let go 5:37 Why nobody owns the road 6:45 Competition that raises the price 8:03 Everyone pays the same shelf price 8:50 A name that belongs to no bank 9:48 A club of banks, until 2008 10:40 Where a toll road can be bypassed — — — MORE FROM THE MECHANISM How Tupperware Parties Made Money (It Failed in Stores)    • Видео   How De Beers Convinced the World Diamonds Are Forever    • Видео   How IKEA Makes Furniture So Cheap (It's the Box)    • How IKEA Makes Furniture So Cheap (It's th...