Glad at least there are some intelligent people on this thread. Although it is kind of sad considering this really isn't that hard to figure out.
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Apple to Collect Fee From Banks for Every Purchase Made with Apple Pay
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Glad at least there are some intelligent people on this thread. Although it is kind of sad considering this really isn't that hard to figure out.
That is correct. The transactions are so secure that Apple got them approved as "card present" transactions, which typically receive the lowest fees due to security.
Also, Apple has accepted some of the fraud liability.
In general that list is spot on. You can also tell a bit more about a card by the first six digits. For instance, a number beginning with 546616 is a Citi bank world elite MasterCard and 542418 is a regular Citi bank MasterCard.
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Perfect! More money into one bucket! Perhaps they can accumulate $200B, $300B maybe even a more staggering $5T? Siphon as much as you can from the global market and just sit on it. All that comforting, but in reality utterly useless cash just for a few guys. How much is enough?
Perfect! More money into one bucket! Perhaps they can accumulate $200B, $300B maybe even a more staggering $5T? Siphon as much as you can from the global market and just sit on it. All that comforting, but in reality utterly useless cash just for a few guys. How much is enough?
My wife and I are worried about credit card fraud. We just had my wife's debit card compromised resulting in 4 duplicate purchases at a Walmart in Mississippi (we live in Texas). This is why our bank caught it, simo purchases in Texas and Ms. Needless to say I am excited by something like Apple Pay. I've infrequently used a token system offered by Visa, but it requires extra steps, is not available with debit card purchases, and most online retailers have my credit card number stored.
The big question is how widespread will this technology be accepted?
How secure is this? I assume there is a data base sitting somewhere that can be hacked.
And will this try to push credit cards aside, or will it work with the likes of AmExp, Visa, and MC?
It not money loss or parasitic. Card processors provide a valuable service to merchants. There is a hidden fee to every cash transaction: cashier error or theft and robbery. Cashiers have to spend time counting their drawers and managers spend hours reconciling the cash...and then they have to risk making the deposit. Every business has been stuck with counterfeit bills. I have managed multiple retail establishments and have repeatedly calculated that I at least break even on most credit card transactions.
Add to these benefits the reduced time it takes to process each transaction and he sea of customers that are opened up to me by accepting cards and this is a win-win for banks, merchants and customers.
Think different, comrade!
Doesn't really matter, unsecured credit cards should have died last decade, but live on. With the target breech the "bad guys" have upped their game to another level by matching credit card by zip code and also bundling personal information with the data. They are now able to reset your pin and withdraw cash in many cases.
If you want to be scared about the (in)security in the system, read the blog below. He is the one who is often at the forefront in discovering and disclosing these breeches to the authorities and the public.
http://krebsonsecurity.com/
I have a chase visa that I plan on canceling after my trip because it's the one card that required that I use their website and does not have 2-factor authentication.
That's very true.
In fact as Apple has matured it's almost as though products are secondary and precisely why they can take a year or two off as they did in 2012 & 2013 to rest on their laurels, do some serious profit taking, and get very few complaints due to complacency.
In fact, Apple starved the customers deliberately so as to create the pent up demand they have now for up to date smartphones.
It's a practice admired amongst their peers, not so much with the customers.
It's like starving the dog before the filming of a dog food commercial. Of course the poor animal will run to the food.
That's how Apple treats their dogs.. Oops, customers.
This is going to be cool. A couple of things I see as being different from the main competitor (Google Wallet).....
Apple has negotiated directly with banks and retailers - making a bigger push to get these companies to accept contactless payment and therefore Apple Pay.
Also, given Apple's control over the iPhone, carriers won't be able to block it or replace it with some other option as was done in the early days (I think even up to last year) of Google Wallet.
And finally, Apple holds a 42%+ marketshare in the US - now that the biggest OEM has gotten into the game, contactless payments should take off here as they've already done in other places around the world.
I'm not naive or blind to think Apple "invented" all of this. But combined with TouchID and their dominance in the US, their entry into this service will cause it to boom in the US.
Someone can correct me if I'm wrong - how does Google Wallet work with OEM skins? Does Samsung or HTC have its own mobile wallet offering? I'm assuming one can download Google Wallet on those devices.
I was never interested in the larger screen size and still not liking it. However the Apple Pay is something I am interested in. I use the Square Wallet to pay at several establishments now -- the whole auto check-in and no need to take the phone out is very cool and works well. HOWEVER, I am always concerned about security, especially if the phone gets stolen. In this regard the new Apple Pay seems like a good compromise because the use of the Touch ID and the token card number means that it cannot be used if someone steals my phone.
I just wish they would have anounced a 4 inch screen with this capability.
I will not wait in line for a phone on release date like I did last year. I will wait until I can play with it in the store to decide if it worth the upgrade this year. But the Apple Pay may be the feature that tips the decision towards a purchase.
I just wish they would have anounced a 4 inch screen with this capability.
I will not wait in line for a phone on release date like I did last year. I will wait until I can play with it in the store to decide if it worth the upgrade this year. But the Apple Pay may be the feature that tips the decision towards a purchase.
I'm a bit surprised by the amount of comments and shock in this thread.
I immediately assumed Apple would take a small % of the interchange fees when they implemented this system. With their influence and large user base, they'd be silly not to do so. As soon as I heard Apple was getting NFC I knew they'd be making it a profit stream.
I immediately assumed Apple would take a small % of the interchange fees when they implemented this system. With their influence and large user base, they'd be silly not to do so. As soon as I heard Apple was getting NFC I knew they'd be making it a profit stream.
That is true. However, you all are assuming there will be additional cost to the customer with this. That is doubtful.
Some of you posters are so silly. Who do you think pays sales tax? Merchants or customers? Merchants are the ones who submit the sales tax to the govt. merchants are the one responsible. They charge the customer the sales tax even though they are the ones responsible for it. Customers are responsible for use taxes if the merchant doesn't collect the tax. For example, in California state, you are supposed to report purchases made out of state that didn't already collect sales tax and pay a use tax. That is how the system works. If you don't want to pay sales or use tax, don't purchase anything. Having a "fee" structure for convenience, (ie. credit/debit or Apple Pay) is part of paying for transactions easily so you don't need to carry around currency. Very few merchants going to go through the hassle of giving you a cash discount.
... and the banks will cheerfully pay
The way I see it; it's quite possible the amount of fraud could diminish over time and the banks will be paying out much less to apple than they have been paying out for fraud purchases. In the scheme of things - it's probably only pennies - but that is also something the credit card companies will never discuss, but we will know its working by adoption.
The way I see it; it's quite possible the amount of fraud could diminish over time and the banks will be paying out much less to apple than they have been paying out for fraud purchases. In the scheme of things - it's probably only pennies - but that is also something the credit card companies will never discuss, but we will know its working by adoption.
Matured? If so, then it happened a long time ago, because they took seven years off between 2000 and 2007, while milking the iPod.
In fact? If it's a fact, I am sure there is some source to back that claim up.
Back again it's the Robeast digger ... It's good to be home.
On to business. I agree a million percent.
Unfortunately for the paranoid, Apple, IBM, Microsoft, Google...any pan-global multi-billion dollar venture has an interest in keeping consumers under surveillance. knowing the customer base keeps them in business.
The ? is what that company chooses to do with data it's collecting from me. It maybe me, I still get weirded out when I use a web browser and I get bombarded with ads for lingerie sites because I looked at Victoria's Secret site 3 months ago.
You can be evil, Apple, just not to me all the time.
You're crazy if you think a for profit bank is going to accept less payment because Apple wants a cut. The % is going up.
When Tim was going on about other companies failing because they just try to make money out of these sort of payments, I genuinely thought he was about to announce Apple had created an open standard...
Nope, they are just trying to make money from it, just like those 'bad' people he was describing, LOL.
I don't think he meant that they did not want to make money. I think what he was refering to was that they will not track your spending habits. Or try to gather information about how and where you shop in order to sell it. (Google cough cough Google)
Stop parasitic money loss...
Don't use a waiter in a restaurant, pick up your own food from the kitchen when you can.
Don't use teachers, read the books yourself when you can.
Don't use toll roads, drive cross country when you can.
Don't buy bread, farm the wheat, mill it and bake your own bread when you can.
Don't get a cellphone contract, use your own two cans with a string when you can.
To summarize: Convenience and paying for services is terribly overrated, so do $h!t yourself when you can.
You can download google wallet on any android 4.4.3+ device I believe but can't use it on most carriers. I had it on my galaxy nexus, never used it for payments though.
So Apple does not replace any of the existing players - there will still be a bank, the credit card processor and the point of sale transactor. Apple will just inject themselves in addition to all the existing players to replace the "swipe motion".
Now, if Apple could work with the banks directly to get their own so called credit card number, not tied to Visa/ MC/ AMEX etc. then I see them reducing costs by not printing/ mailing and keeping track of billions of plastic cards and be less susceptible to theft and fraud.
Not even close. With less chance of fraud and a higher rate of transactions they profit so it behooves them to give Apple a cut, especially if Apple is so sure of their system they are also on the line for any fraud resulting from Apple's devices.
Agree 100%, Stewie... But I guess we have to remember that (by definition) half of the population is below average intelligence and half is above average intelligence...
However, MANY people in that bottom 50% are completely unaware that they're in that bottom 50%.
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I second that. There are a *LOT* of comments from people here who have half formed ideas about how the whole process works, what the costs are, etc.
I have my own business. We sell on the Internet and do trade shows.
We pay 3% on non-present cards (any card) via Stripe.com (and SquareSpace).
At trade shows we use Square which gives us better rates 2.5% on swipes, but not nearly as good as the 1.8% + .30 cents we would get on MC/VI (more on AX and DI) if we had our own terminal that was used everyday (via Costco). Since we only occasionally do trade shows, unlike a standard merchant, the monthly fees more than offset the lower swipe rate.
As to cash being cheaper and the cash prices being cheaper, if we were cash only it would *cost* us money. Not only for all the counting and handling costs but also due to lost sales. It is simply a fact that for items over a certain amount, people are more comfortable using credit cards.
Why? First, our customers have security that the product will arrive and is as described (if not we would get a chargeback and they would get a refund from their card issuer). Second, they are not walking around and flashing large amounts of currency that is at risk from a lost or robbed wallet. Third, if their credit card is compromised, they have no liability (debit is a little trickier because although there is a 0 fraud policy, the issue is that while that is worked out between you and your bank, **your checking account will generally not be refunded the contested amount**...this is unlike a credit card where your dispute amount will be credited to your account while the investigation is ongoing).
So, yes, for small purchases the fees and per swipe charges for a merchant may lead to "No credit card sales below $x". Or no credit cards in dollar or thrift stores because of the interchange and equipment/statement monthly fees, etc. Though even for these merchants, something like Square probably makes sense if they thought it through because of the flat fee, no equipment/statement fees, and ability to use cell phones to process (no need for a dedicated land line).
But for a purchase of any size, the competitive necessity plus the convenience of money handling almost always means credit cards will be accepted. And by increasing sales volume and lowering cash handling costs they could often end up giving customers lower prices.
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There isn't a single source, there's a vast number. Anyone who knows their Apple history and has the courage to be truthful can cite example, after example, after...