Hacker News Reader

Comment by k33l0r | Hacker News Reader

In Finland cheques are pretty much completely unused. Domestic bank transfers are pretty much free for all private people and almost everyone pays all their invoices electronically via their online bank.

To transfer money from person to person, the only information you need is their bank account number and name. As far I can tell, there's no way that you could use the account number in a malicious way (which is why charities and companies can publish their's with no repercussions). With the introduction of SEPA and IBANs, this now applies to the entire EU.

What's more, credit and debit cards are accepted almost universally (with a few exceptions), which means that I hardly ever carry cash with me.

I think you can get a cashier’s cheque if you really need to, but I think cheque books have completely disappeared (I don't even know if I could get one if I really wanted to).

View on HN

" Domestic bank transfers are pretty much free for all private people and almost everyone pays all their invoices electronically via their online bank."

In the US, domestic bank transfers cost money (for example, Bank of America charges 3 dollars for ACH and 25 for sending wires; most banks charge 15 for receiving a wire), which explains to a great extent why cheques are still used.

"What's more, credit and debit cards are accepted almost universally" -- credit card fees are onerous

"I think you can get a cashier’s cheque if you really need to" -- did that on Friday. 8 bucks.

Credit card fees aren't onerous, not here in Denmark at least, I think Finland has a similar deal.

Credit cards are issued by your bank, you pay one yearly fee, 175DKK around 30USD. More often than not the bank will give you a VISA debit card for free, or a Master Card with 30.000DKK limit, no interest if you pay the debt of each month (The bank will do the transfer from your account for free, assuming that you have the money of cause).

Paying bills online: Free Domestic bank transfer: Free Credit card / debit card: Free or fixed fee Getting a check made out: Pretty expensive

Oh I meant fees to the recipient, There's a law in the US that requires CC merchants to charge the same price as they would with cash payment (for most goods; some, like gas, have special exemptions), so when you pay X dollars by credit card the merchant receives less than X dollars.

Oh yes, you're right on that part. Denmark have a "Dankort" a national debit card, you can't charge a fee on that, but you could on other cards, but most stores don't.

You can't charge a fee to the customer. But the retailer still has to pay a fee whenever you use any type of credit card.

Which is why I feel like a dick if I ever have to use my credit card for a sub 30kr ($5ish) purchase in a small business.

Could you verify that it is indeed a law? I keep on hearing different reports about this: some say that it is a law, some say that it is not a law, just a clause in the contract that the merchant and the CC network agree to.

Mastercard & Visa v (Merchants) recently settled an antitrust lawsuit regarding this practice.

>http://www.bloomberg.com/news/2012-07-13/visa-mastercard-set...

>The agreement, which provides for a temporary reduction in rates for merchants and allows them to impose surcharges on customer purchases, follows a seven-year legal battle with U.S. retailers that accused the two largest payment networks of conspiring with banks to fix swipe fees, or interchange.

In the US, there was never such a law. It was a term of credit cards' merchant agreement that merchants couldn't charge extra for credit card use.

However, the recent Dodd-Frank Act limits that - merchants can give a discount for using cash and allows them to set a minimum amount for credit cards up to $10.

That fee is usually somewhere between 1.5% and 3% so it is quite steep. Bank transfers though in Sweden are and most of Europe are either free or cheap.

The fees for the person carrying the cards aren't bad but the processing companies, at least here in the US, probably in the EU too since they're all basically the same companies, charge quite a hefty fee on the business end.

Reply on news.ycombinator.com