Lowest rate as a sign of danger
Any business strives to keep costs down, which is related to the internet-acquiring rate, and minimizing of the risks. The prime cost of an e-commerce transaction in Russia (called interchange fee and IPS commissions for the operation) fluctuates around 1.7% on the average. What if a bank offers 1.7% and 1.8% rate? Is it really that good and is there a dependence between lowering the rate and increasing the risk?
The key factor which should be paid attention to is how quick the Bank pays out the settlement for all the bank operations that went through.
The dispatch point is consider to be third day- namely on the third day IPS is making transfer to banks. At the moment, Russian Central Bank is acting as the payment center of Visa\MC, where the transfers are being carried to corresponding accounts in the third day.
What can be done with the money in one day?
For example, it can be lent to another bank for a day, just give the rate on the loan lower than the Central Bank gives: “overnight”
(How else you can use the extra money, of course, is better known by the bankers).
The danger here lies in the fact that banks usually profit from all transactions, and if the bank makes a bet on the border acquiring cost – that means the bank needs money urgently. In addition, you should not forget that as with any loan, the “overnight” credit, too, can be not returned, and in this case, you are risking your money.