For near field touch payments it would be £20 I would imagine, Apple Pay can be used for all sorts of other "one touch" web payments though they would be without limits.
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Apple to Collect Fee From Banks for Every Purchase Made with Apple Pay
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That is interesting that you claim NFC payments are treated as Card Present.
That is not my understanding based on this article http://bankinnovation.net/2014/09/apple-said-to-negotiate-deep-payments-discounts-from-big-banks/
that states that Apple had to convince the participating banks that the Apple Pay NFC charges should be treated as Card Present.
Since we don't have any Card Present reader other than Square, I guess I would look to others for verification of NFC rates.
Credit Unions
It is unfortunate that Apple chose only to partner with the most greedy elements in the financial industry. I hope that they also partner with credit unions instead of only those companies that brought us near financial collapse just a few short years ago.
It is unfortunate that Apple chose only to partner with the most greedy elements in the financial industry. I hope that they also partner with credit unions instead of only those companies that brought us near financial collapse just a few short years ago.
Great explanation in your post!
But... Let me edit a line in there for you:
There are a *LOT* of comments from people here who have NO idea about how the whole process works, what the costs are, etc.
As an example of what is possible, you can get a Target red card that will act as either credit or a debit card. This leaves Visa/MC/Discover/Amex completely out of the picture.
Another example is Starbuck's gold card which is just a prepaid card that you can add cash to or tie to your bank account.
I would speculate (and it is just speculation) that Apple's system will allow more companies to act in this manner.
If I was Tim Cook, I would want Apple Pay to act in a manner similar to PayPal which essentially acts as an intermediary between the merchant and your bank account.
Just like PayPal, you would have the option of using a credit card. But the goal would be to take the profits from the credit card companies by cutting them out of the transaction.
I expect some of why small grocers and pizza parlors don't accept cards is why cash businesses have always been attractive...they are much less accountable for income and sales taxes.
Normal NFC: Your card was present.
ApplePay: Your iPhone and your finger were present.
The second makes it a lot harder for a fraudster, so there will be less fraud = more money for the banks and merchants.
And compared to normal card payment, it is harder for a scammer to take details of your card, and cracked payment terminals have nothing to work with. Again, makes fraud harder.
apple pay is great. i'm surprised noone else brought a system this simple to the market already - which is a thought i often get with something apple releases.
i fully expect google to announce something similar and easy in a few months. just as it happened with other things like itunes match and iOS in the car.
except maybe for the fingerprint part, since there is still no fingerprint reader for android phones that's just as reliable.
a bit disappointed, that the apple watch doesn't have touch ID
i fully expect google to announce something similar and easy in a few months. just as it happened with other things like itunes match and iOS in the car.
except maybe for the fingerprint part, since there is still no fingerprint reader for android phones that's just as reliable.
a bit disappointed, that the apple watch doesn't have touch ID
Down the chain fees go from the top (banks) to the middle men (retailers) to the end customer (us). Everyone hates paying fees so they just charge the next one in line a fee too to cover their fee. We customers are the end so we have no one to also charge to get the fee back.
I've been using all iterations and options of Google Wallet since it's release. Because I watch all my accounts closely and make several small test purchases like gas or Starbucks to start out, I've found Google Wallet particularly convenient and as safe as my American Express Card.
Apple Pay will be basically the same with the only big difference being their brand recognition. As an Apple shareholder I have waited much longer than anticipated for Apple to finally implement this.
Apples well worn out refrain "Apple waits and refines it before releasing it" is pure BS. They are brilliant and simply procrastinate in too many cases cause they are already obscenely profitable.
It's true at least for Isis and Google Wallet.
From their merchant FAQs:
The links are in a previous post.
Edit: Okay, writing "All" was perhaps too broad, although I was going by the only other major NFC wallets in the US. It could be that they negotiated Card Present, the same as Apple did. However, so far I cannot find any reliable source that says NFC payments are usually Card Not Present. All I've seen is the blog echo chamber claiming it. I think what happened is that they confused payments over the internet (which are of course CNP), with mobile payments (which are CP).
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So anyone can addPay to their phone, even Android or Windows phones... Don't think so.
That's what I mean by an open standard. Sure NFC tech might be open but Apple didn't just announce that, what they announced will only ever work with closed Apple hardware, it has even got Apple in the name.
The sole purpose of the system is to make more money for Apple, by forcing people to buy their devices if they want to use it, and by charging the banks for the privilege of actually using it.
Really contactless payments should conform to exactly the same standards and protocols no matter what hardware it is running on. Sadly it doesn't look like that will happen now.
No but the NFC tech is open so Google Wallet or whatever the Windows Phone equivalent is should also be good to go. Now if the rates charged the merchants are higher on Google Wallet or Windows Phone transactions then it is possible merchants will decline to accept them. But there is nothing preventing Google or Microsoft from following Apple's lead with the Banks, and create apps and flows that allow them to make the same fraud reduction argument.
In fact, I believe it was the initial Google Wallet scheme that proposed using this tokenization model (and standard, btw) but it was the carriers wanting to push their own ISIS (now CardSoft?) system that prevented them implementing it. Now that the dam has been breached by Apple, no reason Google and Microsoft can not follow behind (much like Google and Microsoft did in digital music).
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Correct, Discover is always 6011
I believe 1 is/was Carte Blanche and 2 is/was Diners Club (not sure either of these still exist).
They did announce Navy Federal CU
But most of all the other smal fries don't likely have the same investment in infrastructure.
On top of that, there are 1000's of them, all operating differently. Too giant of a headache, the overhead to deal with that many is likely cost prohibitive.
And, of course, with the coming Chip and Pin/Signature change in cards, most merchants will be updating their machines anyway so NFC reading can tag along.
Why will they update their machines when the new chipped cards still have a magnetic stripe?
Because the fraud liability will switch in, I believe Oct 2015, from the Card Companies/Banks to the merchants if the transaction did not use a chipped card.
Wut? They said in the keynote they don't know what you paid, who you paid it to, what you bought, etc.
In fact, they even hide your name from the merchant.
Doesn't seem big brother-ish to me.
Not if you don't buy anything
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Yes, and won't it be great when someone hacks into your phone and starts buying all kinds of stuff?
Are you being intentionally dense? Are they going to steal your finger and also render you unable to log into icloud to disable it?
That is correct.
My understanding is that any NFC terminal that accepts transactions will accept
pay as long as your card issuer signs up for pay. As of now, PNC is not ready to be announced as ready to go at launch, but they have signed up to be a partner "real soon now." PNC is one of my most used cards so am following them.
I am really disappointed Discover (credit card I use most) isn't on that list.
Email them from you account page...it is what I did as Discover is one of the cards I use a lot.
my debit card provider has actually announced they want to allow NFC payments in 2015. i hope they can work it out with apple too. unless of course apple makes it too expensive to be worthwhile.
creditcards are widely accepted, but not widely used in switzerland. people prefer to use the debit card of their bank or pay cash.
creditcards are widely accepted, but not widely used in switzerland. people prefer to use the debit card of their bank or pay cash.
I doubt this...I only use iTunes Gift Cards (no CC linked) and I cannot gift an app with it. which seems odd to me, I have lots of $$ in the account.
I think (stressing think) it will only work in conjunction with your iTunes Account IF you have a CC on file there.
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I am really disappointed Discover (credit card I use most) isn't on that list.
I read somewhere this morning that Discover was working with Apple to be included. might not be right away though.