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by jarnold
5379 days ago
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I actually did credit card arbitrage in one of my first startups. We discovered a niche market where online credit card transactions were charged exorbitant rates for low-volume, non-swipe monthly subscriptions. By taking on the risk ourselves we aggregated many smaller sites, and was able to become a merchant bank ourselves. That's arbitrage to me. |
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Like, you took on a risk, and you got compensated for the risk.
You essentially issued insurance. Perhaps you were lucky that you didn't have to pay out. But that doesn't mean you found an arbitrage.