Revolution Money Company up for grabs
Posted by: Curtis Stevens on November 21st, 2009

Steve Case’s Revolution Money company is being purchased by Amex and I find this to be interesting on several levels.  The company was founded by Steve Case, who co-founded American Online.  The company’s entire core business philosophy has always been about eliminating Interchange and creating a new, lower cost pin-based transaction network.  They were successful at it and it does save the merchant a lot of money on credit card processing expenses since their pin-debit costs is a fraction of Interchange. However, acceptance hasn’t been widespread. You also must remember that Visa & MasterCard have been around for decades and it has taken them years to become the size they are now. I do not believe they are worried or ever were about this company’s product. If it ever became of size, then I think they would take a second look. The ironic thing is that Amex is buying the company. Amex handles the entire process. The are not only the issuer of their cards, but they are the acquirer and merchant account provider. So now, you have a company that has been charging Interchange fees, which has ironically always been higher than V/MC, purchase a company who’s product has been against Interchange and created something at a fraction of the price. Amex is the last company I would ever expect to buy them out.

Comments are closed.

Merchant Accounts | Credit Card Logos | Ecommerce Blog
Merchant Account Articles | Resources | Link-to-Us | Privacy Policy