> The other major complication with ACH is that most Americans use credit cards for the credit (70% hold a balance). That is something that won't be solved.
I doubt Dwolla needs to solve this problem to be profitable. I'm pretty sure there are still a very large number of cash and debit transactions occurring daily.
> Others like the benefit of rewards (miles, dollars, whatever).
I've seen this argument raised a few times and I still don't understand it. Couldn't merchants (especially online merchants) discount sales that don't use credit cards? The money saved by not offering rewards has to go somewhere.
I've seen "convenience fees" for credit card usage a few times, specifically when renewing car registration or paying parking tickets online. But there, credit card payment was the only option.
As for enforcement for B&M shops, I think it all comes down to wording and appearances. Card companies will accept a gas stations offering a cash discount because that isn't being portrayed as a card tax (negative connotation).
When gas stations advertise $3.69 in giant numbers over the highway, and only when you pull off the highway and into the station do you see $3.79 for credit card or $3.89/$3.99 for plus/premium, I do view that as a card tax. Maybe the CC companies don't, but as a consumer, that's how it feels.
I doubt Dwolla needs to solve this problem to be profitable. I'm pretty sure there are still a very large number of cash and debit transactions occurring daily.
> Others like the benefit of rewards (miles, dollars, whatever).
I've seen this argument raised a few times and I still don't understand it. Couldn't merchants (especially online merchants) discount sales that don't use credit cards? The money saved by not offering rewards has to go somewhere.