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Apple to Collect Fee From Banks for Every Purchase Made with Apple Pay
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Sorry, I don't understand your question..
[cough] iTunes Radio
We're a few features behind, here in the UK.
I'm sure you have an experience going into your favorite 7/11 and seeing that they suddenly have a new machine that takes your card. These are supplied by the major payment gateways/resellers for free to these merchants as they get a small slice of the transaction. I guarantee that your favorite Subway will have the necessary NFC device to take Apple Pay by the summer of next year.
This is exactly why this was so ripe for Apple to do "right" and have caught the credit card leaders with their pants down. Debit cards from banks are forced to integrate with antiquated plastic CC #'s in order to provide their customers easy methods of payment directly from their accounts.
Eventually, they will work directly with Apple and there is no concept of a number. It's just you and you can securely verify that you are the owner of the bank account. I doubt Apple has plans to ever get into the actual credit market itself, but they are certainly forcing them to adopt to the new world.
Depends if they can use touch ID as authorisation, then I can't see a problem with exceeding the £20 limit.
Our Banks might want to do their own thing though.
The inherent problem with Google Wallet, is that it is purely a software solution. This is Apple's new DNA, combining devices and software, working with all industry players and innovating and leading.
There is a 1-3% charge on VISA/MC in my country, the price of using it it send directly to the costumer. Our national debit card has a flat rate of 8 cent. There is currently a APP all that allows money transfers between people instantly and you can pay with it some stores (currently 100% transaction free).
I thought the same thing when Tim announced that McDonald's is implementing it in its drive-thrus!!
We don't know yet, but I'm sure they are smart enough to not allow your watch to be stolen and used for payments. In fact, they emphasized the required tether of the iPhone (which will eventually change, i'm sure).
Imagine simple software solutions. A "player" enables his watch to buy all drinks for his friends at the club. Someone more security conscious, requires each transaction to require specific input for the day even. It's exactly what payments has needed. Imagine that every transaction shows up on your watch and you have to give a specific signature, eliminating all possibility of fraud because you have pre-determined the input required for a successful transaction?
This is stuff that Visa/MasterCard/Amex should have attempted at least long ago.
Why would it be a no go exactly?
Banks that Apple have already concluded negotiations with have determined that the amount that their income will increase (by increased use of their cards) will offset whatever % they will need to pay to Apple out of their "take" of each transaction. Just the same way record labels made the same decision years ago.
Why would banks in other countries not make exactly the same determination?
Fair enough!
Apple spent a ton on software/hardware engineering to solve these banks' problems. Why shouldn't they be willing to pay for that?
Why should Apple create a new payment system and give it away to banks for free?
I don't understand the knee-jerk reactions to a good thing--for us as users first and foremost.
According to the article, the banks stand to make more money, which is WHY they are willing to pay Apple a tiny fee.
They'll make more money because credit cards will now be easier and safer than before, so people will use them more. There's no need to look for "evil hidden fees" when the profit motive of the banks is unchanged and simple.
Banks also stand to lose less to fraud.
So why are people stating as fact that banks will lose money if they don't add new fees, hidden or otherwise? What's your source of such dire certainty?
Apple spent a ton on software/hardware engineering to solve these banks' problems. Why shouldn't they be willing to pay for that?
Why should Apple create a new payment system and give it away to banks for free?
I don't understand the knee-jerk reactions to a good thing--for us as users first and foremost.
According to the article, the banks stand to make more money, which is WHY they are willing to pay Apple a tiny fee.
They'll make more money because credit cards will now be easier and safer than before, so people will use them more. There's no need to look for "evil hidden fees" when the profit motive of the banks is unchanged and simple.
Banks also stand to lose less to fraud.
So why are people stating as fact that banks will lose money if they don't add new fees, hidden or otherwise? What's your source of such dire certainty?
I was wondering about that. A lot of the gift cards start with the number "6", which I have only seen on Discover Cards. Does Discover take care of those?
Just an observation (first digit):
3 - AMEX
4 - Visa
5 - MC
6 - Discover
or am I off base on this one.
The point (yeah, I was wondering when I'd get there too...) is that a lot of gift cards are, in effect "Discover Cards," so I was wondering if, in the future, they'd get in on that too.
Ever notice how some places don't accept American Express? It's because they charge a higher fee. That fee makes retailers unwilling to contract. In the case of debit being run as debit, the merchant may or may not pass on a service charge. It varies by merchant. When you hit credit, they pay fees just as they would with Visa, typically around 2.5-2.75%. If that goes up too much, you're less likely to see strong adoption. I really hate that practice.
The banks will most likely charge merchants a slightly higher percentage, which will wind up in Apple's hands
this will never come to Germany. We are way to "anal" about privacy giving our "Stasi" history
Because these banks which agreed to use the old model of credit cards. The rest of the world has moved on a long time ago. Credit cards - especially with the magnetic stripes - are very poorly and more and more rarely used when you live in Europe for example. There are a lot of people owning a credit card for the sole purpose of being able to shop online. Because many online stores just do not allow other cards than VISA, MC and Amex. But the fees you have to pay are horrible. This has started to change the past years, just the same as it started to change about 20 years ago in real life. More modern cards are accepted (especially debit cards, not credit cards) in many online stores which are free of fee just the same way as you do not pay fees when you use such cards in stores. You pay a fixed amout per year for the bank to account your money, that's it. I did not use my VISA for more than a year now and as there is no other use for that piece of plastic in the real life, people start to abandon these cards alltogether.
I did not pay fees per transaction for the past 20 years. Why should I now?
Very true.
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It's not a liquid. It's a great many pieces of solid matter that form a hard, floor-like surface.
What make you think that? Let me guess your analogy. Only because I don't carry my physical card now I will spend more. The US has the worst debt ratio per person. I think you are the only exception.
its only 20 because when someone steals your contactless card they dont need any id or additional codes of any sorts to make transactions obviously you see why that would be the reason to set the limit at only 20 pounds.
there is absolutely no reason not to allow iphones' secure payments to have limits.