This is a technical solution to a non-technical problem.
My risk to my credit number being stolen is honestly low. The risk is the merchant providing a substandard service 99% of the time, and an OAuth style payment flow does nothing for that.
Someone like Amazon who is a trusted merchant already negotiates fees with their banks and they likely already have an extremely low fee rate.
What Stripe, Square and PayPal provide is a service for integrators who don’t want to
spend money talking to a bank, negotiating a rate, and then implementing the required security to execute their own transactions.
Walmart, Amazon, and the other big companies are not interchange exempt. They are not able to get a significant discount below interchange, hence why they keep financing lawsuits against Visa, MasterCard and such over the bundling of all Visa or MasterCard branded low-cost (non-rewards) and high-cost rewards cards under one banner that they are forced to accept as a bundle.
Merchants would love to reject all cards that are a Visa Signature and above, leaving only the very low cost cards as accepted. The Card Networks have engineered via branding and contracts that this does not occur though.
My risk to my credit number being stolen is honestly low. The risk is the merchant providing a substandard service 99% of the time, and an OAuth style payment flow does nothing for that.
Someone like Amazon who is a trusted merchant already negotiates fees with their banks and they likely already have an extremely low fee rate.
What Stripe, Square and PayPal provide is a service for integrators who don’t want to spend money talking to a bank, negotiating a rate, and then implementing the required security to execute their own transactions.