Holmes takes the strongest case in Payments Systems in the U.S., by Benson and Loftesness: chapter four, the WEB code of 2001. Bankers approved a code for paying bills online; PayPal used it to pull money from bank accounts for pennies instead of $2.50 by card on a $100 sale, taking the transaction from the customer's bank. Mark this: the banks wrote the rule, then met unintended consequences. Lestrade asks about the risk: two tiny deposits, name the amounts, prove the account.
The strongest case in Payments Systems in the U.S. is chapter four's WEB code: in 2001 the bankers who run the ACH approved a transaction code so consumers could pay bills online from their bank accounts, and PayPal used it to pull money from customers' accounts for pennies instead of the $2.50 a card would cost on a $100 sale, taking the transaction away from the customer's bank; the banks wrote the rule and met unintended consequences, and PayPal covered the risk of a wrong account with two tiny deposits the customer must report back.
On the book: Payments Systems in the U.S. by Carol Coye Benson and Scott Loftesness
▶ Keep watching in the feedStarring
Tags
Source
Payments Systems in the U.S.
Glenbrook Partners · Jan 1, 2013
