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Apple Pay Competitor CurrentC Detailed as Convoluted System With Minimal Consumer Benefit
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You do not need the cell signal for
Pay to work at a NFC terminal. (I have personally put my iPhone 6 in Air Plane mode and used it at a NFC terminal.)As I stated in my previous post, Step 1. Hold iPhone near NFC terminal. And I'm assuming people hold their iPhone with their hand.
Fair enough, and thank you for the most complete explanation yet. So that leaves only the other two exaggerations.
The point being, this is a battle between Apple + the credit card companies + some big merchants against other big merchants. They are both going to have their selling points. Talking about this as if it was already game-over or some kind of moral or ethical debate is ridiculous. They all want something from us.
To be fair, the engineer who designed this was probably finding a way around weaving requirements from upper management. They basically said, how do we get lots of user data, and use ACH for transactions to save the businesses money. And since this isn't possible without....some major downsides, this cluster@%!! is the result.
This almost seems too good to be true for Apple. Just at the time they come out with a very secure and easy way for people to pay for things we are now hearing about "the other way" which sounds very cumbersome and forces you to give up even more data than you had to with traditional credit cards. I imagine the execs at Apple, and Google to be fair, are reading this stuff and laughing their a--es off between cigar puffs.
Message to retailers: it sucks that you have to pay a fee for credit card transactions. But, if you honestly expect us to believe you haven't already passed that cost onto us by slightly increasing prices you are out of your minds. Time will tell, but I am fairly certain you backed the wrong horse. But look on the bright side, you only have to suffer through your deal for three years.
Message to retailers: it sucks that you have to pay a fee for credit card transactions. But, if you honestly expect us to believe you haven't already passed that cost onto us by slightly increasing prices you are out of your minds. Time will tell, but I am fairly certain you backed the wrong horse. But look on the bright side, you only have to suffer through your deal for three years.
4. Pray the retailer's point of sale terminal isn't infected and just sent your card info to a hacker half way round the world.
Apple Pay to me is better than plastic, because that last step can't happen. Each transaction is a one-time-use deal.
I love how CurrentC makes a big point about how none of your personal information is stored on your phone -- as if that's a selling point.
Actually, I'd prefer that my information be stored on my phone (encrypted, of course) because that's something I have physical access to and can control. Once I give my personal information to MCX/CurrentC, I have no control over how that information is stored and secured on their servers.
In 2012, when CurrentC was first dreamed up, the Target and Home Depot debacles hadn't happened yet. Fast forward two years and many consumers are a lot more vigilant about who they share their personal information with. Give MCX/CurrentC my social security number? Riiiiiiiight.
Actually, I'd prefer that my information be stored on my phone (encrypted, of course) because that's something I have physical access to and can control. Once I give my personal information to MCX/CurrentC, I have no control over how that information is stored and secured on their servers.
In 2012, when CurrentC was first dreamed up, the Target and Home Depot debacles hadn't happened yet. Fast forward two years and many consumers are a lot more vigilant about who they share their personal information with. Give MCX/CurrentC my social security number? Riiiiiiiight.
The EMV standard should accomplish the same thing. In theory, costs should come down...at least after ramp up costs are absorbed. I doubt they will though...the cc's will just pocket the difference as extra profit.
Also, perhaps my eyes just aren't working right today... what is that thing supposed to be on the left side, in the 2nd image? I'm not seeing 'cashier.'
Is this a rorschach test?
Is this a rorschach test?
I don't really understand their business model.
Credit card companies assume the risk involved with fraud and non payors. They have to hire the staff to make collections call and investigate fraud. Yes they make intrest on your balance plus the transaction fees.
With this system they can't even do a pre-approval right? So if I go to Walmart and buy $5000 worth of high quality socks and then the money is not in my account who is going to hunt me down and how are they paying that staff?
Credit card companies assume the risk involved with fraud and non payors. They have to hire the staff to make collections call and investigate fraud. Yes they make intrest on your balance plus the transaction fees.
With this system they can't even do a pre-approval right? So if I go to Walmart and buy $5000 worth of high quality socks and then the money is not in my account who is going to hunt me down and how are they paying that staff?
NFC is more standardized and generally available than CurrentC, independent payment terminals like PINpads by Verifone often support NFC for base payment purchases without any modification to point of sale software (passes it along like a regular authorization from a swipe). CurrentC requires point of sale software modification, pay to play (money to get in the partnership), etc...
The big retailers may create incentive for some to sign up, the question is will they be able to continue offering sustainable incentives and continue to have people use it. Plenty of people are using the AT&T/Verizon/T-Mobile NFC wallet, Softcard, because there's a promotional offer that you get a $20 Amazon gift card for every compatible card you add and make one purchase on. If they continue to offer big discounts people may be willing to use it, but with the hassle of the current QR based system, I can't imagine people will do it for the everyday discounts that would be sustainable to offer.
Electronic debits (ACH transactions) can be charged back, and once done, you can't fight them as a merchant. This is one reason CurrentC requires SSN/driver's license, because if you do this they'll report it to a credit reporting agency and they'll make your life very difficult until you pay.
Way more than 5 minutes. ACH is batch-processed, and it never has same day value. That's why it's so cheap. The earliest you'd see a debit, and the earliest the retailer would see a credit, is the following day.
If you have an online savings accounts thru one of the companies that offer it, you can see how this operates. Any time you do a transfer, you're looking at 2-3 business days for credit at the destination, even though it's been debited on one the other end already. Corporations would have ACH lines of credit (exposure limits), so funds would be made available quicker... but it's still a terrible solution. They could potentially make that 2-3% swipe charge back in that time frame through earnings credits or overnight sweeps by realizing the funds sooner, as credit cards offer (though not right now, interest rates are doodoo).
That's changing somewhat. In order to force the move to Chip + Signature, or Chip + PIN, card companies have transferred fraud liability to the retailer with MagStrip readers. After October 2015, any Mag Swipe will put the burden on the retailer, and any Chip read will go to the Card issuer. That's why you may notice how suddenly all the readers have been swapped out at larger big boxes... they now all have the Chip reader in the bottom.
The NFC terminal sends a request for a code to your phone via NFC.
The phone sends the code to the NFC terminal via NFC.
At this point, the phone has no idea how much money is in your account.
The NFC terminal sends the code over a landline to the bank. The bank checks the code, and checks if everything else is alright (enough money etc. ) and sends confirmation to the NFC terminal, via landline, that the bank will pay the money.
Separately, there is a push message being sent from the bank to your phone that money is leaving your account. That message could be delayed.
If the landline between merchant and bank isn't working, _nobody_ can pay anything. Checkouts closed except for cash and cheques.
I don't see any convenience to using NFC other than technical bragging rights. Cash is more secure than all other methods!
This. And ij doesn't seem to understand NFC if he's worried about getting signal through concrete walls.
How about right from the horse's mouth? Here's the CrappyC (err, CurrentC) support document -- which I found on the Internet (TechCrunch needs to thank me):
http://support.currentc.com/
"d.Paying with Your CurrentC Wallet Retail Locations
To pay with your CurrentC app you must:
1.Have downloaded and installed the CurrentC application
2.Have registered your account with CurrentC
3.Have added at least one payment account.
Once youve completed these three steps, you can start using your CurrentC app to purchase goods and services at any of our participating locations. To make a payment using your CurrentC app at a store, select the Pay with CurrentC option at the register (If there isnt an option available inform the cashier or checkout clerk that you would like to pay with CurrentC) then follow the steps below.
◾Open your CurrentC application
◾Enter your 4-digit passcode
◾Press the Pay button
◾Either scan the Secure Paycode that the cashier presents (default) or press the Show button at the bottom of your screen to allow the cashier to scan your Secure Paycode
◾Select the payment account that you would like to use
◾Press the Pay Now button"
And even if you YOU don't choose to use it, imagine waiting in line behind people who ARE using it. Between the convoluted greetings the employees are required to give, people being asked for (and then fumbling with) their damned "rewards cards" and the general slow pace, checkout in those places is a nightmare to begin with. Adding crap like this to the mix will just make it worse.
Do they ask for your bank account info, ssn, etc.?
You have to consider the whole picture, not just one aspect.
The google store is doing just as well too.
https://play.google.com/store/apps/details?id=com.currentc