Well first of all, they are going to build a block chain, not use the Blockchhain (bitcoin) or comparable network. They are going to build it themselves in a lab in India.
So the same company that has a network currently that doesn't work for shit it going to make another one with bastardized technology instead of using the only one that actually works and this is suppose to be a good thing?
They are doing a pilot in Europe and inviting a few banks to participate.
"Through the use of smart contracts and blockchains I believe we can create a fast, compliant and low-cost interbank payment and settlement service, with embedded regional compliance," wrote Hendrik Kleinsmiede, co-founder of Visa Europe Collab
Visa plans to use settlement platform Interbit to see if their block-chain creation can reduce costs and expects this proof-of-concept project to wrap up within 3 to 4 months.
So let's get this straight.
Visa, a network that takes a payment from a bank issued card splattered with holographic imagery, magnetic encoding, and EMV chips containing access information to a consumers personal information and funding account, through an electronic reader with its own security in place and purchased by the merchant who has to have not one, but two accounts, that being a business account and a merchant account he/she never sees or touches, then with all of the above sends the payment information through another company (the processor) to one bank, who then settles the payment over the course of the next 24 hours to 3 days only to send it to another account and then to the actual business account of the merchant who has no guarantee he or she was paid, even if they are paid and the money is in the account.
This being up to 6 months and even 2 years in some jurisdictions that the merchant then has to keep a receipt stored someplace for the next several years in the event of a chargeback. Meaning at any given time the product or service that they were paid for may be reversed through this same network resulting in the ultimate loss of product and/or time of the merchant who ends up paying for everything all while Visa and all of the other parties involve enjoy a nice percentage of the sale regardless if the merchant ends up getting paid or not. In some cases they are even charged an additional fee for getting the reversal in the first place.
How is a homegrown Visa blockchain going to solve that?
That's the real problem with the Visa network. Who cares if Visa gets to make more money by saving some with blockchain. Blockchain was created to make a transaction irreversible and something tells me that Visa intends to leave that little part (one of the most important parts) out of its abomination.
The sad thing is that irresponsible people lose their cards or are careless, then call their bank to get fraudulent charges reversed. Regardless of the fact that it was their fault to begin with, they can do this. The bank certainly isn't going to take any responsibility and demand payment back ultimately sucking the funds out of the merchants bank account back to the consumer who messed up in the first place.
The processor nor Visa is going to take responsibility and do as instructed to make it all happen. So who gets stuck with the bill? The merchant.
The overpriced Visa commercials never tell you about that little gem now do they? Nor do the banks. They all make it sound like they are taking on the bad guys but all they are doing is sticking the merchant with the bill because that party is generally too small to take on a bank, Visa, or companies llike PayPal and can do little to nothing about it.
You can certainly "dispute" it. It does work once in a while but don't hold your breath and don't get too excited about this news of Visa's homemade blockchain.
It's nothing more than a way for the rich and powerful banks and payment companies to become more rich and powerful while blaming everyone else but themselves for their flawed systems.
How is a homegrown Visa blockchain going to solve that?
That's the real problem with the Visa network. Who cares if Visa gets to make more money by saving some with blockchain. Blockchain was created to make a transaction irreversible and something tells me that Visa intends to leave that little part (one of the most important parts) out of its abomination.
The sad thing is that irresponsible people lose their cards or are careless, then call their bank to get fraudulent charges reversed. Regardless of the fact that it was their fault to begin with, they can do this. The bank certainly isn't going to take any responsibility and demand payment back ultimately sucking the funds out of the merchants bank account back to the consumer who messed up in the first place.
The processor nor Visa is going to take responsibility and do as instructed to make it all happen. So who gets stuck with the bill? The merchant.
The overpriced Visa commercials never tell you about that little gem now do they? Nor do the banks. They all make it sound like they are taking on the bad guys but all they are doing is sticking the merchant with the bill because that party is generally too small to take on a bank, Visa, or companies llike PayPal and can do little to nothing about it.
You can certainly "dispute" it. It does work once in a while but don't hold your breath and don't get too excited about this news of Visa's homemade blockchain.
It's nothing more than a way for the rich and powerful banks and payment companies to become more rich and powerful while blaming everyone else but themselves for their flawed systems.
Report by dinbits
Image source: dinbits staff
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