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<\/figure>\n\n\n\nFortunately, JP Morgan has decided to lift the merchant out of poverty with a literal 20x increase in their credit rates.<\/p>\n\n\n\n
‘Tis the season!<\/p>\n\n\n\n
This is the best part in our view: <\/p>\n\n\n\n
It always cracks us up when people point to banks as the ethical parties because they’re banks.<\/p>\n\n\n\n
“Oh, they have so much regulation around what they can and can’t do that they have to behave.”<\/p>\n\n\n\n
Bro.<\/p>\n\n\n\n
First, the people writing legislation are generally unemployable (right up there with retailers, who are probably their biggest constituents).<\/p>\n\n\n\n
Second, nobody understands payments like a payments bro.<\/p>\n\n\n\n
Look at this nice, fat rate increase from the too-big-to-fail-thanks-to-government-meddling-in-the-economy bank JP Morgan Chase.<\/p>\n\n\n\n Fortunately, JP Morgan has decided to lift the merchant out of poverty with a literal 20x increase in their credit rates.<\/p>\n\n\n\n ‘Tis the season!<\/p>\n\n\n\n This is the best part in our view: <\/p>\n\n\n\n Think about it: if the merchant increases costs to their customers, the payment processor gets the direct benefit without the need for any customer conversations.<\/p>\n\n\n\n That’s the power of math: if I make a flat percentage of what you make, I will always make more money if you increase your prices. <\/p>\n\n\n\n Your proportional price increase equals my proportional payment EBITDA increase, since payments have no cost.<\/p>\n\n\n\n<\/figure>\n\n\n\nPayments is perfectly<\/em> hedged to inflation, so there should be no reason to ever increase payment rates.<\/h4>\n\n\n\n