Apple Negotiates Lower Transaction Fees With Credit Card Issuers for Mobile Payments Initiative

Discussion in 'MacRumors.com News Discussion' started by MacRumors, Sep 4, 2014.

  1. macrumors bot

    MacRumors

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    As part of its upcoming payments initiative, Apple has reportedly negotiated deals for lower credit card transaction fees with several credit card issuers. According to Bank Innovation, Apple has entered into agreements with American Express, JP Morgan Chase, Citigroup, Capital One, and Bank of America.

    The banks have agreed to allow all of Apple's transactions to be conducted as "card present," a set fee charged when a customer uses a card in a physical retail location. Typically, there's also a higher "card not present" fee that's charged when a card is used online, due to security issues. Apple's also managed to secure a lower "card present" fee on top of that, cutting its costs further.
    Apple has reportedly been able to negotiate this lower rate by ensuring banks that transactions will be secure, both through the use of the NFC chip which reports location, and through Touch ID, which will be used to authenticate transactions.

    In addition to signing deals with several financial institutions, Apple has also managed to secure deals with major credit card companies Visa, MasterCard, and American Express, and it's also been speaking with various retailers about its upcoming payments service.

    Rumors have suggested that Apple's payment service will allow iPhone owners to use their devices to make payments both online and in retail stores, possibly linking credit cards to existing iTunes accounts. Apple is expected to announce its mobile payments initiative during its September 9 media event.

    Article Link: Apple Negotiates Lower Transaction Fees With Credit Card Issuers for Mobile Payments Initiative
     
  2. macrumors 68000

    nepalisherpa

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    #2
    It's happening!
     
  3. macrumors regular

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    #3
    You see, like the tablet, Apple is doing what it does best. Instead of inventing the tablet, it revolutionised the tablet industry and made people want one.

    With NFC, Apple may not be the first to use it, however, they're likely to change the way people use it- enhancing it, for the better.
     
  4. macrumors demi-god

    markyr17

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    #4
    This is very exciting :D If apple does it right, paying with smartphones may become the norm.
     
  5. macrumors regular

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    #5
    Credit card Issuers to pay Apple a fee of 1.75%.
     
  6. macrumors 6502

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    #6
    They got the discount because of TouchID, which has never been successfully hacked yet so its easy revenue for Banks and Chargebacks will not be major factor.
     
  7. macrumors 65816

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    #7
    If this is true I think it confirms Touch ID is coming... The card not present additional fee is used for the banks to recoup losses because of the increased chance of fraud and therefor loss for the bank. I'd think the only way the banks would agree is if there was an increased security to ensure fraud isn't possible.

    Matter of fact, if this is the case it would make my credit card more secure than using the actual credit card. iPhone/iWatch + fingerprint security > credit card with a signature
     
  8. macrumors 6502a

    PowerBook-G5

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    #8
    That iPhone OS 3.0 In-App Purchase Icon...
     
  9. macrumors 6502

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    Thanks captain obvious
     
  10. macrumors demi-god

    firedept

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    Good on Apple. About time this comes to the market.
     
  11. macrumors regular

    designaholic

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    So skeuomorphic, my eyes are nearly bleeding ;)
     
  12. macrumors 603

    jrswizzle

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    #12
    Hmm perhaps we'll see my "swipe and scan" payment method afterall.

    Swipe your wrist (iWatch with NFC) across a payment terminal. Scan your fingerprint on your iPhone for authentication.

    Of course, if you don't want to purchase an iWatch, the process can be done solely on an iPhone (swipe the iPhone).

    REALLY looking forward to this. :cool::apple:
     
  13. macrumors 65816

    JeffyTheQuik

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    After yesterday's sell off, this is nice, as it's a continuous revenue stream, rather than cyclical, tied to the releases of new hardware. I hope this raises the floor on Apple earnings.
     
  14. macrumors 6502a

    lolkthxbai

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    #14
    This great news! More incentive for people to move forward with Apple's mobile payment plans!
     
  15. macrumors 603

    jrswizzle

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    #15
    AAPL is down another $0.78 today.

    Betcha we see a HUGE spike come Wednesday.
     
  16. macrumors 6502a

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    #16
    I love the way Apple handle business. Unlike some other competitors that just throw a new technology in, they actually establish the full flow that users can actually use it from day one.
     
  17. macrumors newbie

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    #17
    You Americans and your fees for everything, lol.
     
  18. macrumors regular

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    #18
    Hmm didnt think about that one. Wonder if when you are buying something in your mac and need to put in credit card information. You can use your iOS touch ID to verify that payment information over to the mac. That way its "in person" even when you are buying something online.

    Or new macs will also have touchID built in.



     
  19. macrumors member

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    #19
    And once again Apple defines what "an ecosystem" is to all the naysayers.
     
  20. macrumors 65816

    JeffyTheQuik

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    #20
    Or Tuesday. This happens during trading hours. I think traders will be watching the keynote on one of the screens, and their accounts on the other.
     
  21. macrumors 65816

    vpro

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    #21
    I certainly hope NOT! EVER! Losing a wallet is a huge enough hassle, losing your entire life on a phone, that is being resold in the black-market for pennies, oh my goodness gracious God help us all.

    I only pay in gold chains or nuggets still - seriously!


    I love you all!
     
  22. macrumors 6502a

    dugbug

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    #22
    I would love to have my aluminum apple keyboard get touchid, if anything to unlock 1password for me :)
     
  23. macrumors 65816

    JeffyTheQuik

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    The business of America is business. -Calvin Coolidge
     
  24. macrumors demi-god

    markyr17

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    #24
    I fear you've missed the point of Apple's security. 2 Thing I have to say about this

    1. Apple's security IS nop notch. Requiring TouchID for purchases, I presume.
    2. You're never liable for any fraud using credit cards. The credit card companies take care of that.
     
  25. macrumors regular

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    #25
    Even in Asia where NFC-based payments are way ahead of the US market, people prefer paying in cash. This is nice and all, but cash is still the best.

    The number one advantage of cash aside from security is the fact that paying with cash helps the payer stay aware of payments.
    I personally have switched months paying with either all cash or all credit. Looking back I found that I saved more money and spent less when I paid with all cash than with all credit. I dare anybody to try the same test and I guarantee that they will get the same results. I'll probably get a new Mac next year and I will be paying for it in cash.
     

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