I don’t understand what the desired outcome is for the FTC. These vaults are only accessible by Visa/Mastercard or the credential owners(issuer banks). At the moment of payment the flow is the same as any other transaction where it goes through either Visa/Mastercard/Amex depending on the brand. The fact is none one even knows the credentials in the transactions are tokens and not the real account number this includes the merchant, the merchant bank or any other intermediary like payment processors.
The point is I believe, the payment can be settled outside of the mastercard network, but mastercard only allows their service to perform the mapping between token and PAN, and force settlement to happen over the mastercard network. The idea here is that the token can be taken by another card network, mapped to the real PAN, and then settlement happens between the issuing bank and merchant over the other network.
I.e. instead of acquirer <-> mastercard <-> issuer it becomes acquirer <-> X-Network <-> issuer, even though Mastercard was used to create the initial link between device and bank account.
Probably an extension of the laws around fleecing customers by actually having debits of an account rather than some imaginary credit which can then become an over draft fee.
I don't think many people even understand why pin numbers are required for debit instead of the 'free' credit options.
Thank, this makes much more sense. But I doubt it will change since this flow is dependent on the country and the acquirer, for example there are countries where Visa processes all the Mastercard transactions, they can say they already allow for the x network example above to happen. This happens both ways between Visa and Mastercard.
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[ 202 ms ] story [ 809 ms ] threadWe know how that went last time. I wonder if the process has been fixed, or if it will be gamed again.
The point is I believe, the payment can be settled outside of the mastercard network, but mastercard only allows their service to perform the mapping between token and PAN, and force settlement to happen over the mastercard network. The idea here is that the token can be taken by another card network, mapped to the real PAN, and then settlement happens between the issuing bank and merchant over the other network.
I.e. instead of acquirer <-> mastercard <-> issuer it becomes acquirer <-> X-Network <-> issuer, even though Mastercard was used to create the initial link between device and bank account.
I don't think many people even understand why pin numbers are required for debit instead of the 'free' credit options.