[registrars] Re: [ACCJ-ML] Bank delays in Credit Card collections.

["Robert F. Connelly" <rconnell@psi-japan.com>]

At 11:12 22-07-99 +0900, Roger Boisvert wrote:
>In the US , and most countries, when a merchant sells something with 
>credit card payment, the card company withholds payment of abou 5% or so 
>to the merchant until a fair amount of time has gone by to allow an 
>unhappy customer to return goods if they are unhappy.  The merchant gets, 
>say, 95% of their money very rapidly, but the remainder is withheld for 
>several weeks.
>
>In Japan merchants don't have that problem.  Instead however, the system 
>causes a massive delay, 5 to 6 weeks for the total.  Which system is 
>better?  My preference is the American system, but, the American system 
>also forces some merchants to place a large amount on deposit before they 
>can start using the cards to offset potential losses from bad 
>sales.  Given that is true, perhaps the Japanese system isn't so bad afterall.

Dear Roger:  We put up a deposit of only US$20,000.  I think that is better.

Regards, BobC


>The above doesn't give actual costs and actual delays, but, it does 
>indicate some of the real issues and comparisons.  Being a little lazy in 
>not bothering to get exact data.
>
>Roger Boisvert
>Global OnLine
>
>At 17:19 99/07/20 +0900, Robert F. Connelly wrote:
>>Dear Colleagues:
>>
>>We've just been made aware that the banks are delaying liquidation of 
>>credit card payments for 5 or even 6 weeks.
>>
>>That could be a dreadful deterrent to E-Commerce.
>>
>>One person even suggested that the bank might withhold the 5% Consumption 
>>Tax.  That seems improper as the Consumption Tax is collected 
>>incrementally as the goods or services pass from manufacturer (or 
>>importer) to the retail outlet.
>>
>>I believe this is a "tread" which deserves some dialog on this List.
>>
>>Regards,
>>BobC
>>-----------------------------------------
>>A snail was run over by a turtle.
>>When asked, "What happened?", he said,
>>"It happened so fast, I can't remember".
>

~~~~~~~~~~~~~~~~~~~~~~
"A hog seldom dies a natural death."
Ulric B. Bray
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