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So instead of collecting fees from consumers, it makes money on the fees that it collects from retailers every time you swipe your card.
It was possible, he learned, to breach the point-of-sale terminals at stores, the machines on checkout counters through which you swipe your card at the supermarket, the gas station, the department store — just about anywhere you buy something.
Regulators at various agencies are trying to answer questions like these: How much should a credit-card company be able to charge a shopkeeper for administrative fees when you swipe your card for a purchase?
"If you think about when you swipe your card at, let's say, Starbucks or at the Safeway or the Giant, there is no real sort of interaction there," said Mr. Talbott.
You swipe your card here, and put your finger right here," said Mr Egal, before swiftly moving on to talk about Somalia's extraordinarily successful cashless mobile phone banking system - another example of an entrepreneurial society finding ways to flourish.
It planned to be profitable from its margin on the interest from investing users' money and a revenue-sharing agreement with Mastercard on interchange fees charged to merchants when you swipe your card.
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You swipe your cards into the system and you're done.
If you press the "Regular Credit" button, a blue light flashes and you can swipe your card just as you would with any other transaction (if you don't press the button before swiping, it won't work).
But the card's real selling point is that it enables you to redeem your points anywhere you can swipe your card.
Or you could swipe your card and it could email you the receipt.
The tablet comes with a card swiper, so you simply swipe your card, enter how much of a tip you want to leave (there are buttons for 15%, 20%, and so on), and Presto will actually email you your receipt.
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