A woman pays for an item with her credit card on her phone
16.11.2021

Debit cards. Mr. Price negotiated a reduction in the cost of use in favor of merchants. Here are the reasons for this agreement.

Launched in response to the impact of the Coronavirus on online shopping, debit cards were quickly criticized for the rates applied to merchants offering this payment solution to their customers. An agreement with the suppliers was recently reached.

 

Let's take a step back. 

One fine day, we realize that a virus called Covid-19 will have a lasting impact on our lives. This was followed by the beginning of a pandemic that led to social distancing measures and lockdowns.

Telecommuting is becoming recommended or even mandatory. We meet at home and our purchasing acts are rapidly evolving towards online purchases.

The only problem for those who don't have a credit card is that it's impossible to make these purchases. At the same time, this has a negative impact on merchants' turnover, both in physical points of sale and on online sales platforms.

The reaction of credit card players? 

Visa and Mastercard react and identify a business opportunity by launching new debit cards.

The difference between the various cards is explained by Worldline:

Debit cardsDebit cards are characterized by the immediate withdrawal of the amount from the bank account (pay now).

Credit cardsThe essential feature of  a credit card is  that the amount is withdrawn from the bank account at a later date. The amount of the purchase is not debited directly from the bank account, it is the bank that pays first. The total amount of all payments made with the credit card is debited monthly (pay later). Credit cards often include travel insurance.
Prepaid cardsA prepaid card is reloaded with a sum of money before it is used and is then used for payment until the amount is used up. The process can of course be repeated as often as you like.

 

Promises.

Increased security for merchants and users. An internationally accepted payment method. A solution for online and on-site purchases. Finally, the fact that you can link these cards to apps such as Google Pay, Samsung Pay or Apple Pay.

Are there also advantages for the retailer?

Yes, but...

Offering an additional payment method offers an undeniable advantage. But at what cost?

When the cards were launched, 10 cents were deducted as well as a rate of the purchase amount. 0.49% for Mastercard and 0.96% for Visa. It doesn't sound like much, but the fees could quickly add up depending on the total spent. 

 

Are they all in the same boat?

Not really. Major retailers such as Coop and Migros are in a position to negotiate the applicable rates.

Of course, this is not the case for small retailers with only one point of sale. However, it is the latter that has the least leeway when it comes to its cash flow.

 

The crank return.

It didn't take long for voices to be raised. First, the small traders and then the politicians. National Councillor Jacqueline de Quattro was the one who called on the Federal Council to consider that the communication of debit card issuers was out of step with reality. In particular, the fact of having misinformed users was criticized.

 

The Federal Council is getting involved.

The Federal Council therefore decided to request the intervention of the Price Supervisory Office. As a veritable institution in this field, previous actions have made it possible to save the Swiss hundreds of millions of francs.

 

Mr. Price negotiates.

Thanks to negotiations with the main players, an  amicable agreement was reached in order to reduce the rates concerned and thus reduce the cost for the merchant, or even for the customer, the latter not being the victim of a proportional price increase.

 

Purchases and projects.

As a key player in the credit sector, the Milenia financing platform is committed to providing information on all subjects that may impact your purchasing power. Credit cards, debit cards, loans, personal loans, banking terms... Everything you need to know to make the best decisions so that your purchases and projects are carried out within your means and budget.

Its team of advisors will also be able to guide you through the process of applying for credit. We invite you to visit our platform so that you can simulate your amount, the duration and the best applicable rate. 

Confidently, simply and quickly.

 

Speaking of credit cards.

A credit card offered at advantageous conditions? 

This is possible thanks to the partnership between Milenia and Bonus Card. The advantages offered are numerous: discounts with the biggest brands in Switzerland, a bonus program redeemable in shops, promotional offers, discounts of up to 25% for your nights in a hotel or when renting a vehicle... In addition, there is legal protection, travel insurance, cancellation of reservations, emergency services, goods delivery insurance, etc. 

Isn't that enough? Thanks to the agreement with Milenia, you get a free credit of CHF 40 and you don't pay anything for your first year of contributions.

Convinced? Contact us to take advantage of this offer. Not a Milenia customer yet? Don't worry, it's a gift all the same!
Shall we try?

 

 

 



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09.01.2024
Telecommuting: flop or not?

Since the Covid pandemic, companies have multiplied remote working methods. The most widely used is telecommuting. Two years later, has this method been successful?

 

Let's take a step back

During the lockdown, the world of work experienced a real shift.

Companies had to adapt and various means were put in place to ensure the continuity of services, sales, and the very functioning of the organization.

Do you remember?

The famous cardboard box filled with a computer, a mouse and a screen that the employees took home...

We somehow settled down somewhere in our apartment or our house.

The less fortunate had to sit on an old table at the back of their bedroom.

Children screamed in the background and parents had to juggle their work responsibilities with those of being a mother or father.

Ah... What wonderful memories!

In addition, the schedules became confused. There was no beginning and no end. We were already connected before, but now the workplace had invited itself into our home, into the family, into our home.

However, not everything had to be thrown away.

The doctor's appointment, the receipt of the Zalando package, the visit of the plumber... What required us to take time off or organize ourselves differently simply fit into his work schedule, on site.

Above all, no more time wasted on the road or on the train. We earned two hours of our living every day. That's no small feat...

We weren't the only ones. Hundreds of millions of people around the world, by obligation or freely, switched to this new way of working.

It was necessary to put in place state-of-the-art technological and IT infrastructures to enable more secure virtual exchanges of information via videoconferencing or e-mail.

It was necessary to set up a teleworking policy to give directives on working hours, the availability of employees and managers so as not to be too intrusive in private life.

Finally, regular reviews were required to assess the effectiveness of telework policies and gather feedback from employees.

The big winners? Zoom, Teams, Skype, Webex... It was a good time and the number of users exploded

 

Video conferencing platforms

In order to establish clear and effective communication channels, it is necessary to have instant messaging and video conferencing tools to maintain smooth communication between team members. This transition is being made by different players who bring specificities specific to each sector.

You may have seen that.

Some companies will use the Zoom platform, which allows simple video conferences with a discussion thread, which is easy to use and not very connected to other services.

Others will use Microsoft Teams or Webex, which offer more integrated and secure business solutions.

Skype and Google Meet round out the market leaders, at least in Europe.

 

And what about employers?

The main fear of some employers during this pandemic?

Decreased productivity.

The prevailing thought was that employees, less supervised than before, would work less given this new organizational freedom.

The endless breaks, the last-minute shopping, the Netflix binging...

We're not going to lie, the majority of teleworkers have taken advantage of this to better combine professional and personal needs.

There have been many productivity studies, too many to mention here.

In the end, productivity dropped slightly on average, but this varied enormously depending on the functions and responsibilities.

Profiles whose tasks were recurrent completed their work more quickly and, not needing to do more, to take advantage of the time available to go about their personal business.

Others worked even harder, especially early in the morning, late at night, or on weekends.

Where some managers suffered from a lack of supervision (monitoring?) of their teams; Some employees did not take well to the distance, the lack of clarity on the establishment of rules... All of them missed interpersonal relationships and this may have impacted the corporate culture and sense of well-being.

In conclusion, there is neither one statistic valid for everyone nor a representative feeling of all employers and employees. However, there is no doubt that the world of work has changed and the effects continue today.

 

Exactly. And today?

Companies are adapting to the demands of employees, especially young people entering the workforce.

They demand flexibility, adapted schedules and, yes, telecommuting.

In Switzerland, the job market is in favour of job applicants. Companies must therefore remain attractive and take these demands into account.

Companies are implementing hybrid work modes that allow the employee more time to work from home but require them to be present for a certain number of days in the office. Again, there is no single rule.

Some organizations simply refuse the principle of remote work.

Others impose a fixed day of attendance.

Some leave the choice to their teams.

One thing is for sure, remote work is here to stay, in one form or another.

More than controlling productivity, more than managing teams and workloads, the real challenge is to keep the links between employees, to ensure proximity between managers and their teams.

Finding a balance between the attractiveness of the employer brand, individual well-being and the needs of the company; This is where the effort must be directed for the future.

 

At work and at home, Milenia is always available

Accessing credit through our financing platform has never been easier.

Everything is within your reach, with customization according to your projects, we accompany you from start to finish so that your projects can see the light of day.

For your personal loan, we offer the best market conditions with 0 application fees. Everything is designed to make your life easier.

Your loan application can be done entirely remotely, with support from your personal advisor or both at the same time.

The flexibility, adaptability, personalization of your offer... All of this is embedded in our approach and services.

As the leading credit player in Switzerland, place your trust in us so that your personal dreams and projects come true.

 

 

 

 

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Loan illustration: loan of CHF 10'000. Effective annual interests rates between 4.9% and 11.95% over a 12 month period lead to total interests of between CHF 261.80 and CHF 624.80. Duration: 6-120 months; Maximum annual interest rate (including all loan handling costs) 11.95%. Loans approval are prohibited if they lead to excess debt for the consumer. (Art. 3 LCD)

 

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