Walt Disney World thinking about cutting ties with Visa?

[freediverdude]

And that's why they aren't getting rid of Visa...if there is any teeth to the rumor, it's really about their affiliation with Chase Visa over their Disney-branded reward card, and nothing about "not accepting" Visa.

But that does not preclude their possibly wanting to reduce their costs by offering an alternative - which is precisely what the CurrrentC consortium was trying to do. And their carrot for consumers was to NOT allow the convenience of Apple/GooglePay (even though they are already set up to do it), but only offering that convenience to those with CurrentC accounts.

I think you've hit on something here- yes, I agree they're not taking away visa charges, but what if the magicband charges had to be linked to a CurrentC type transaction through your bank account if you want the convenience? That could be what they are getting at here. And yes that could save Disney big money, but it might also reduce spending or visits, hence the survey. This could be a big decision for Disney if that's what they are looking at.

 

[Polydweller]

Disney ended the Magic Kingdom Club at the end of 2003 and the Disney Visa was supposed to be its replacement in 2004. However the benefits offered by Disney Visa have never been close to what was offered by MKC. I have a charter member Disney Visa. My card says "member since day 1".

And that took it away from everyone but Americans. I could belong no to Magic Kingdom Club (which I was) but can't with Chase Visa. Disney maybe looking at working with Visa International to expand the program, at least I can hope. They've really locked out a lot of customers by going with a bank rather than a credit company.

 

[lockedoutlogic]

And that took it away from everyone but Americans. I could belong no to Magic Kingdom Club (which I was) but can't with Chase Visa. Disney maybe looking at working with Visa International to expand the program, at least I can hope. They've really locked out a lot of customers by going with a bank rather than a credit company.

I doubt they would looking to expand any benefits programs...more likely to shrink what they already have.

And as you know...the banks are the "only" credit companies in the US due to banking regulations...perhaps a bit outdated - especially since you can't trust a US bank as far as you can throw your loan officer - but unlikely to change.

 

[lockedoutlogic]

I think you've hit on something here- yes, I agree they're not taking away visa charges, but what if the magicband charges had to be linked to a CurrentC type transaction through your bank account if you want the convenience? That could be what they are getting at here. And yes that could save Disney big money, but it might also reduce spending or visits, hence the survey. This could be a big decision for Disney if that's what they are looking at.

An alarming number of Americans use credit for things they shouldn't...like daily trips to the mall and even vacations.

While it would be nice if disney didn't have to cater to those that "buy now...pay more later" the reality is that they are as dependent on them as every other peddler of volume goods in the bazaar.

They need unsecured credit to operate...and a link to a bank account requirement would show a massive drop in park revenues.

Disney is in zero position to handle that.

 

[Anthony1971]

Chip and pin will be here soon... That was the idea but it takes a long time for processors to update on their end. Some examples are the new Target card has a pin, the new jet blue card has a pin... some processors can already accept pins and if you happen to be at location that has uses one of the processers you will need to use your pin as well. Who pays the fees for rewards cards... You in the end as credit card fees are built into pricing. It is not cut and dry to explain but every card has a different fee. A rewards card will have a higher fee and the rewards are paid for by the issuing bank. In a very short version you have a processor that charges a fee (this connects to the retail point if sale system) this sends the transaction to V/MC (they get .25 per transaction that is it) which sends the transaction to the issuing bank which then sends an authorization number back to the processor which sends it to the retail point if sale system. The person who gets the most is the issuing bank. Amex is different as they are the issuing bank. there is more to it as their are a lot of people who get a fee... Disney uses a processor like everyone else and your pricing is based on volume but will only differ by a small percentage as again the bank pays the rewards and a processor has to make a profit so they can only discount do much. Why would Disney change credit cards sponsorship $$$ and or very poor service which was the case with the original Disney visa which was not Chase- I forget the bank name but I remember having problems myself. The fees for any reasonable size company will average about a little under 3% for v/mc (again rewards cards have a higher fee and lower for non rewards cards) Amex is a little over 3%. I could write a book and still not be done on how it works and I do not know all about it just a lot of experience as part of my responsibility is the credit card end of our business. The processing end is only part as taking chip and pin credit cards as well as all of the government mandates and procedures and tests and software/hardware...............cost a LOT of money. If Disney was cash only they could easily make 5% more likely closer to 6-7%.