2011.11.12 Dwolla

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I just signed up for Dwolla, because it makes a lot of sense to me.

It's 25¢ per cash-like transaction (for the receiver) instead of a percentage like the established credit-banking system. Those percentage fees might have seemed more appropriate back when it was a mostly-manual system, with card impressions and slips of paper transiting for the actual transactions. But now that it's all electronic in an established communication system that the credit companies ride for almost free, what value are they actually providing any more? The convenience to consumers they offer is essentially nil for online shopping, and the sleazy way they try to lull people into paying interest on balances is hugely parasitic. And that parasitic effect isn't just on individuals; it has ramifications for the whole economy. Anything that leeches resources while contributing no tangible benefit to the whole is clearly something we should try to cure ourselves from.

The mantra for anyone who doesn't want to be a victim of credit card companies is "always pay the full balance". But by using Dwolla, we also get to know that the fine businesses we choose to support with our purchases actually get to keep their full slice of the pie instead of possibly forking over a few percent off the top due to our choice of transaction type.