Gruber was right to focus on this quote:
“I don’t know that it will, and I don’t care. As long as Visa suffers.”
There’s something that these Cabal-MXC companies need to figure out really quickly, because, just like Apple with every version of iTunes, Visa has Terms of Service that these merchants agree to, and that Visa can change at any time. If you think for a moment that Visa isn’t looking at this and fuming, you’ve never read those documents that Visa sends out to merchants and banks. Banks have teams of lawyers pouring over these TOS’s all day, every day, and there’s nothing they don’t know about them, but they still get dinged when they aren’t doing something exactly the way that Visa wants.
Visa wants people using more secure systems – like Apple Pay and the other NFC systems developed that use tokenization. Visa can easily make it a contract point that NFC systems be in place. Why they haven’t is beyond me, but they could.
Much more likely, tho, and something they’ve done in the past, is what I like to describe as “Don’t Even Fucking Try to Make Us The Bad Guy” clause.
Some of you may remember getting gas in the 80’s and seeing “Save 5¢ per gallon with cash” signs on the pumps. You know why those went away? Because Visa and the rest of the credit card cabal saw that and freaked out and put in a clause that says, basically, that you can’t offer products and services at two different prices in an attempt to mitigate our fees. Up until that clause existed, many businesses were doing just that.
I fully expect to see a clause in there that says that anyone pulling this MXC crap, or even just using older non-NFC systems, will incur the highest transaction fees until they also accept secure payments via NFC. To keep it from being anti-competitive all they have to do is put in what I’ll call a “We Fucking Hate Fraud And You, You Pricks” clause that basically makes people accept NFC systems or get hit by the highest transaction fees possible even if the card is present because giving out the card number to merchants is insecure and costly for Visa – and they absolutely hate to lose money.