Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : CheckFree Holdings Corp. (CKFR), the next Dell, Intel? -- Ignore unavailable to you. Want to Upgrade?

To: Charlie Smith who wrote (10678)	9/30/1999 9:40:00 AM
From: Benny Baga	Respond to of 20297

Charlie, Mincy can probably answer your question better than myself. I guessing Checkfree needs to be careful what areas it goes into with all the players. Benny

To: Charlie Smith who wrote (10678)	9/30/1999 10:03:00 AM
From: micny	Read Replies (2) \| Respond to of 20297

Charlie, CKFR had a CC merchant processing business, but couldn't provide competitive rates to those offered by the "scale providers". It's really the merchants that get hurt in the low dollar trans (and the amount is considerably higher than $5), and issuers don't much care for them either because the merchant processors usually price on a fixed-fee/percentage basis. In fact, low dollar transactions are one of the catalysts for "stored value" and "smart card programs" which can be priced lower because they are authorized off-line, and bulk transmitted for settlement. In the Amazon structure, a $20.00 transaction cost the seller 7.75% on a $20 purchase while it costs "ONLY" 5.1% for a $200 transaction. At $5 the cost is a whopping 16.75%!