Mr. Scotty AND ALL,
Sorry for the delay in getting back to you, but have had a ton of "honey do's" to get done this weekend.
Concerning your question(s) as to whether Winners Debit system will serve as an undesireable barrier for shoppers from the U.S. (and the rest of the world for that matter), who prefer to simply charge purchases to VISA/MC/AMEX? Now don't jump out of your seat when I tell you ....YES!
There will always be a need for, and use of, credit markets worldwide, by both consumers, and merchants; however, there are many compeling reasons for a worldwide Debit market as well!
Lets take a look at what VISA will offer merchants, consumers, and banks versus WINR. Remember this is a three (3) pronged interaction in which each party is looking for the most desireable outcome.
The following are quotes from the VISA webpage:
1.) VISA has over 600 million cards issued worldwide
2.) VISA, in its attempt to capture the internet market introduced the "SET (Secured Electronic Transaction) Card in 1997. To date 20 million have been issued
3.)"VISA itself does not offer cards or financial services directly to consumers and merchants, that role is fulfilled by out individual members"
4.)"While the cards are accepted at millions (16) of locaions worldwide, they remain very much a local product". In fact over 20,700 financial entities worldwide now distribute cards bearing the VISA logo.
5.)Chargeback protection: "In essence, The VISA rules for Internet transactions will protect SET-enabled merchants from recieving fraudulant purchase information- and associated chargeback losses- IF the transaction involves an SET digital certificate for the cardholder. This not only eliminates potential losses, but also reduces associated administrative costs. Chargeback rules for SET transactions without cardholder certificates, channel encryption transactions, and other purchases are the same as card not present transactions. Your acquiring financial institution can answer specific questions about chargeback liability." WOW 20 out of 600 million cards are SET enabled, thats 3% of all VISA credit transactions that merchants don't have to worry about charge backs from one of 20,700 institutions. If I am an E-merchant I am not sure I am real thrilled with this
6.) Go visit the VISA webpage and look at the plethera, or rather the lack thereof, of worldwide merchants that they have attracted in two (2) years. stunningly underwhelming isn't it? Also, notice that the merchant websites are only in merchants native language occasionally english too.
Now we know a little bit more about VISA, and for our purpose MC, AMEX..etal other CREDIT facilities and how they work. One needs to look both to the future and to the past for guidance on what may happen in the worldwide E-commerce market. I suggest reading a book titled "the History of Money" By ..Jack Weatherford. Remember where money is involved there is inherantly mistrust, especially when accepting credit payment from unfamiliar entities. For instance if I am a German merchant, how comfortable am I accepting tons of credit transactions from Brazilian, Latin American, Japanese, Russian backed bank VISA cardholders? And on the other hand if I am a consumer from these same countries, how comfortable am I with the monumental interest rates applied to these cards. In other words, there is a huge market of consumers out there who either don't need, or cant get credit! But, this doesn't mean they don't have money to spend on E-commerce, they just don't want or need credit.
Enter Winners Internet Network, Inc. A worldwide payout syatem based on Debit (cash) transactions versus Credit transactions. Also, rather than having to worry about 20,700 completely separate worlwide entities, WINR will handle all these cash transactions through one (1) central European Trust account. It will be paramount that the CyberLinkTrust sell its integrity and reliability to the world market! Now as a merchant I am thinking, no matter where the transaction comes from or goes to I've got cash instantly with no worries of worlwide banking problems and credit worries at 20,700 different entities. Also, the matter of charge backs. In the real world, whether people realize it or not, when you buy something at a store with cash or check, a debit transaction, you are still paying the same price for the product as credit purchasers because chargebacks and fraud on credit facilities are calculated into the over-the-counter price you pay for any goods. E-commerce should be able to sort this out in a manner such that cash buyers will be able to purchase goods at a better price as there is more leverage given to the merchant because he already has the cash in hand, or account. With 97% of credit cards, the lender may withhold payment from merchants on consumers notice of displeasure or fraud. So, will WINR's system favor the merchants...YES, in that it will give them monetary leverage that credit consumers now hold. If the process favors the merchant, why would I as a consumer want it? Well believe it or not, 99.9% of all merchants want your business today, AND tommorrow! This type of financial leverage in the merchants favor should lead to lower prices for the Debit consumer, and more consumer choice as merchants realize the stability and comfort this system brings.
Make no mistakes, Alliances are being formed and persued. Just as we went from the neighborhood shop, to the strip mall, to the huge shopping malls...Cyberspace is now in exactly the same process. Huge worldwide malls will be formed like shoppingdowntown.com and there will be tremendous competition as to who gets to service this industry. I believe WINR's system offers some very compeling selling points that will attract a large number of merchants who want the leverage and comfort a debit system gives them; and, will also attract a large number of consumers who can neither get nor want credit and like the idea of lower prices for debit transactions, even though they lose financial leverage. Also, remember WINR's capabilities to convert websites to the eight (8) most common languages, and to convert ALL of the worlds major currencies, including the Euro-dollar. Add to this the quality assurance provided in accounting, security and confidentiality, and it appears to me you have a system where, with a little give and take, both the consumer and the merchant, get a better deal.
I have left a lot of salient points out here, but I feel I am beginning to wander a bit, and the overall picture and the intricacies involved would take a novel to present....and again I highly recommend "The History of Money."
Best Wishes,
Swedelo
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