Banks Are Scheming To Dominate A Future Cashless Society

Tyler Durden's picture

Authored by Shaun Bradley via TheAntiMedia.org,

Visa recently announced its new Cashless Challenge program, which offers $10,000 to restaurants willing to transition into accepting only digital payments.  As the largest credit card processor in the U.S., it’s no surprise Visa is spearheading this campaign.

Under the guise of increasing transparency and efficiency, they’ve partnered with governments around the world to help convert financial systems into cashless models, but their real incentive is the billions of dollars in extra transaction fees it would generate.

“We are declaring war on cash,” Visa spokesman Andy Gerlt proudly proclaimed after the program was announced.

The food-based small businesses Visa is targeting are among those that benefit most from accepting cash from customers. When transactions are for amounts less than $10, the fees charged cut significantly into profits. Only 28% of food trucks currently accept credit card payments because of the huge losses they incur from them. The bribe from Visa may seem appealing up front but will be mostly paid back to them over the next few years in fees alone.

Liz Garner, Vice President of the Merchant Advisory Group, which represents over 100 of the largest businesses in the U.S., explained some of the hurdles faced when dealing with card networks:

“For many businesses – both large and small – the cost of accepting plastic cards and other forms of electronic payments is one of their highest operating costs. Most business owners have no qualms about paying reasonable fees for business services, and they do so every day for items such as cleaning services, security systems, Wi-Fi, and other basic needs. However, they have the ability to negotiate for those services in a fair and transparent marketplace, which they do not with the two major credit and debit card networks….Credit card and debit card fees are dictated directly by Visa and MasterCard and are imposed on the majority of merchants in a take-it-or-leave-it fashion. Most businesses feel that failing to accept these major card brands is not a competitive option so they continue accepting electronic payments even though the costs are squeezing their business, and the inflexible acceptance rules fly in the face of free market enterprise,”

This ongoing push for a cashless society in EuropeAsia, and the Americas is about much more than just phasing out paper money — it’s about central planners solidifying control over the public’s wealth. This ongoing merger of corporate and government interests is the definition of crony capitalism. Regardless of the blatant collusion, the choices individuals make will still ultimately decide the direction for the future. Buying material goods on credit has become a lifestyle for millions, but the long-term costs of those decisions must be understood if there’s any chance for progress.

Americans have made a huge mistake by running up a staggering $1 trillion dollars in credit card debt with an average interest rate of over 16%. Thanks to the Federal Reserve system, companies like Mastercard, Discover, and American Express can issue bonds paying extremely low-interest rates to the investors while simultaneously lending that money out to credit card holders at sky high rates. Companies will always take advantage of opportunities to increase profits, but the people’s willingness to keep borrowing from them is at the core of the problem.

Access to cheap capital has been extended to the largest corporations for over a decade, but when it comes to small businesses or individuals there is a completely different set of standards. The pressure to consistently increase revenues and stock prices has led to an unnatural parasitic relationship between these companies and their customers. Cash is one of the last options that allows people a way to avoid dealing with this kind of shakedown.

More than 30% of all payments in the U.S. are still conducted in cash, but financial intermediaries that charge processing fees are joining with the State and central banks to ensure the public has no room to innovate. Credit and debit cards have been the most convenient way to make purchases for over a decade, but emerging competition is slowly making them irrelevant.

Bitcoin and smart contract platforms have introduced an entirely new marketplace for businesses and individuals outside the dominion of the old financial vanguard. Dozens of large corporations have founded the Enterprise Ethereum Alliance to build support for other developing alternative blockchain technologies aside from Bitcoin. This ongoing evolution towards peer-to-peer payments will eventually doom companies like Visa to the same fate as Blockbuster. Those in power may champion the benefits of going cashless, but going bankless may be the only way out of this extortion matrix.

The efforts by governments and the financial industry to eliminate cash are only going to intensify. Those who adapt to the new paradigm of peer-to-peer payments will thrive, while those who don’t will have their hard earned money extracted to support a failing system. The illusion of banks being safe should have been shattered after the 2008 crisis, but eventually, the reality of how unstable the current institutions are will become apparent. Educating entrepreneurs and businesses on the benefits of Bitcoin and other decentralized options is the only way to shift this economy away from the control of central planners and towards a free and voluntary market.

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InsaneBane's picture

These psychopaths are living in a parallel universe.
D-wave does work...

TeamDepends's picture

All your cash are belong to us.

Rebelrebel7's picture

Jjust give us your F#$%ing money and walk away! It's basically a bank robbery in reverse.

NidStyles's picture

If automation is the future, why do we still have bankers when ATM's exist?

Fire the bankers, if anyone should be economically displaced, it's those assholes.

apadictionary's picture

Russia end game? make russia great again. unlike US whose end game is make Israel great again.

mtl4's picture

I can't wait to see the folks at visa crap their pants when we finally get a unifying crypto that cuts out the transaction costs entirely.

ReasonForLife's picture

Credit cards?  Lol, that plastic relic?  How about using some decentralized cryptos, such as Litecoin for instance?  Talk about cutting out fees and middlemen!

ReasonForLife's picture

Cash is Trash.  The future is cryptographic currency.  Get on or be gone.

Andre's picture

EMP.

Power failure.

Ransomware.

Aaaaand - it's gone.

Nexus789's picture

That is more than likely. Either deliberately or a natural event. 

dark fiber's picture

You left out government mandated packet filtering.   Cryptocurrencies will provide one major service to the world.  They will lay bare the true face of government for even the greatest idiot to see.

ReasonForLife's picture

Oh yea, in that case so is your bank account, credit cards, stock exchange, internet and any way of life that ties into ANY electronics.  So where is your logic?

Andre's picture

Where is your common sense?

Not all calamaties are universal. Ransomware may hit your wallet, maybe thousands, but not hit all. 

As for accounts, there are backups and statements allowing rebuilds

Cash does not disappear into random bits, or become locked away and useless at the whim of a black hat. For that matter, neither do physical gold or silver, and in some cases ammo is possibly a barter item.

At any rate, your assertion "cash is trash" is not really a valid statement, unless the issuing authority itself ceases to function in some absolute sense. It is absolutely vital in the case of more localized emergencies

TheEndIsNear's picture

Tell that to the guy who runs the local feedstore, then try to buy a few bags of bullshit with your cryptographic currency. He would politely toss you out on the sidewalk on your ass.

ReasonForLife's picture

Lol, resistance to new things is so common, it's written all throughout history how those who resist progression and evolution end up being run over by it.  If you cannot adapt to a changing world, you will have a very hard time in it.

3LockBox's picture

Something tells me these anti cash merchants are going to be messed with real bad.

In fact it will be my new personal mission to push back so hard on these controllers. No freaking mercy.

I pity the fools.

 

oddjob's picture

Didn't really need an extra reason to hate Visa.

Ignatius's picture

Agree, but this move toward a cashless society is far more insidious than simple corporate bad behavior.

The psychopaths want it ALL.

medium giraffe's picture

trying to buy a bottle of water at some remote tourist shop is going to be tricky. 

oh well, full steam ahead and damn the consequences, as per usual.

dark pools of soros's picture

why are you at this remote tourist shop peasant?  With what approved funds do you have that are not seized yet?  Your role in life has been pre-determined with scheduled purchases for the next 19 years and then you will be killed as per the renewal doctrine

 

jughead's picture

Back in the late 90s my in-laws had a remote tourist restaurant that only accepted cash.  They stayed in business all of six months. Not taking the form of payment that the majority of your customers offer isn't a good business model.  Tourists prefer their plastic. 

dirty fingernails's picture

File this headline under "no shit, sherlock". next thing will be tge shocker "banks game cashless system to benefit themselves at customers expense"

Rebelrebel7's picture

In the meantime,  society is scheming for a bankless  society with greenbacks.

VZ58's picture

The second last paragraph is a complete fantasy. Bitcoin is a giant distraction and scam. And in any case, this will be unstopable, because people will willingly give up their right to cash> Most are utter morons who do not understand the consequences of a cashless society. VISA and MC are like the local gang collecting tribute from small business. I know as a small business owner. Guess who pays more in the end? Its a joke. People really are stupid because they don't see it. 

DaveA's picture

Check out https://blockchain.info/block/000000000000000000c6c14534e579b2bb9205852f...

1.044 / 1323 = 0.00079 BTC, or $2.18 average fee per transaction. Most blocks generated are just under the one-megabyte limit, so transaction fees will, like Manhattan rents, shoot to the sky as more users bid for space in that fixed-size block.

Bitcoin will never be a common currency for the same reason we can't all live in Manhattan. It's a fad like CB radio, though perhaps a few hardcore nerds will still use it when 1 BTC = 1 USD.

AnarchistRex's picture

No, not bitcoin. It was the first crypto and as such has limitations that are already being surpassed by newer crypto's.

One such crypto coming down the pike in another year or so is called SafeCoin (a coin for the SafeNet project - built by the MAIDSAFE company) - which will scale in speed to any number of users.

VWAndy's picture

 Bartertown is going to be interesting for sure.

Golden Showers's picture

So how does this work? Visa stops charging restaurants for every credit transaction and insteads gives restaurants digital money for every transaction?

Who works for whom?

Man, every time I'm in a store I wait for these dumb motherfuckers to swipe thier cards... "Debit or Credit?" "Is this a swipe or a chip reader?" "Enter your PIN" "Sign here"... meanwhile I have exact change in one hand and a fist in the other. Wait for it... Wait for it...

I can't stand this shit. Visa should fucking pay me every time someone swipes their fucking card. I should get paid for standing there and standing there. Since when did gas stations let you go inside and pay for gas with a fucking credit card? What the fuck? Doesn't every last god damn pump have a card reader? Oh, and the best is when that greasy shirtless dude buys a fucking philly and then turns around and wants to buy some menthols. Two transactions. Two. Debit. I'm standing there ready to flex. Nigger, get your fucking blunt wrap and get the fuck back in line, bitch. One transaction per head banger.

If I had a store it would be cash only. Cash or a baseball bat to the fucking dome. I'd be knocking motherfuckers out daily but they get to keep that shit. I'd just write "THE MANAGER" on the fucking slugger and tell the dumb ass customer if they have a fucking beef they can talk to the manager.

Fuck you, VISA!

Silver Savior's picture

I like it when they try to pay with a code on their phone at Starbucks. It never goes right. Reset and try again. Oops almost, nope one more time..........Fucking bullshit money.

Nostradumbass's picture

But no rewards points with cash.

I will play their game and use their cards/gimmicks to my advantage and I will dump them as soon as I do not benefit any longer. Businesses should do the same.

Silver Sparrow's picture

Don't worry... they have a chip for that.
I'm going to stick it in my ass.
Happy scaning bitches...

flaunt's picture

And we're "scheming" to utterly destroy (((the international banking cartel)))

Rick Cerone's picture

When are banks not scheming?

TIMBEEER's picture

You can declare a cashless society.

 

Meanwhile, I mine cryptocurrencies.

TheEndIsNear's picture

mining (noun): 1. the act, process, or industry of extracting ores, coal, etc., from mines.

ljag's picture

A quantum computer in your house! Cool doood

Coffee Long's picture

This is great. I've heard from a few cops that a business has no legal recourse for providing goods or services and declining payments in cash. Gas stations were getting it hard for a while for refusing large bills. When somebody drives off, the cop asks if they paid and the clerk is forced to say they declined payment; no crime has occurred, sorry...I gotta get a list of these restaurants.

MsCreant's picture

Low grade Project Mayhem.

Thanks for the pro-tip.

Jessica6's picture

That is true (until they change the legal tender laws). Few people even think to fight it though and fewer dare to.

I suspect most places (such as the passport office where I am) get around it by charging up front. I pay cash for everything I can; nothing annoys me more than those fat chicks (and it is always fat chicks) buying their donuts or ice creams or sugary drinks with their stupid phones, or with credit cards, and it's always under $2-3. Transactions always take three times as long.

In Canada it is illegal for a business to give discounts for those paying cash (or at least to advertize it as such). It also used to be common for businesses to demand cash only for transactions under $5, but thanks to lobbying, that is no more.

GooseShtepping Moron's picture

This is a bullshit article shilling for Bitcoin. The whole idea of a cashless society is a contradiction in terms. You can play around with the idea; you can even run some semi-successful experiments in it, but people will always find some medium of exchange to use. If prisoners trade in sardines and cigarettes, the much larger, much more complicated outside economy will never be without its "cash." This is getting to be as tiresome as those endless automation articles.

jack stephan's picture

I'm gonna resurrect Andrew Jackson like serpentor in giJoe.  And send him on a mission.

Hey Andrew, you're like a terminator of bankers, you're the guy you old Bastard here's some trashy beer serving women I got.  You been asleep too long.  Take a load off.

Why stop, you were on a roll old man, and if there was a slimy meter the public will ignore, it's bankers in 2017  They get nails in the skull, fun drops of tall buildings and all sorts of exotic yet unprovable deaths.

I could read 10 Caesars ten more times and if they were in front of me they would still look in shock, these maniacs are past garden variety, it is truly almost biblical revalations shit.  And im not religious.  I wish I was exaggerating.  Who is the whore of Babylon this year???

 

 

Silver Savior's picture

I don't do cashless societies. Either I exchange cash or you won't get my business. Go ahead take the bait and watch sales go way down. A lot of other people like cash too and you will also piss off even some card holders because they use cards as a choice and now you are going to make them use them? 

Starbucks has been trying to get me to load money on to a Starbucks card and use it. Also register the card. They in turn promise a free drink now and then if I use the card. Not worth it to me. The hippie coffee shop gives me a free drink for every punch ticket I get completed. Cash ok. 

I have options bitchez.

Debugas's picture

i wonder what cash alternatives people are going to start using once governments stop printing cash alltogether

jughead's picture

same as now...trade/barter/PMs

 

 

Akzed's picture

"Hey Mr. Barista, I'll give you this hub cap for a Vente Mocha latte half skim half 2%...?"

Nostradumbass's picture

"Visa recently announced its new Cashless Challenge program, which offers $10,000 to restaurants willing to transition into accepting only digital payments."

Any restaurant that agrees to this treachery should be boycotted. Is $10,000 enough to sell out your customers?

MsCreant's picture

And they should ask themselves, if Visa is willing to give me this much money to do this, does it means they are going to make a Yuuuge profit off of me some how, somewhere? Am I going to be screwed down the road? Why yes, I bet I will be. 

If it is an idea some banker had, then it is a doorway to a good sheep shearing. 

Akzed's picture

Before he shuttered it, the local 7-11 Indian told me no more plastic, cash only. He paid over $20k last year to Visa & MC, he says. "Enough of that!"

So go ahead sub shop guy, take Visa's $10k to ditch cash, and lose the fee on each sale - forever.