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Apple to Collect Fee From Banks for Every Purchase Made with Apple Pay
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You are naive to believe these fees aren't added to the cost of the product. That's why many many gas pumps have a cheaper cash price vs. credit.
I'm old fashioned I guess. I can still lift my wallet and pull out my debit card.
Then again, I have 2 credit cards and they stay at home. I'll be watching this as I do find the concept interesting.
As far as safety, I suspect this will be no less safe than swiping a DC or CC at any gas pump, restaurant, or shop.
Then again, I have 2 credit cards and they stay at home. I'll be watching this as I do find the concept interesting.
As far as safety, I suspect this will be no less safe than swiping a DC or CC at any gas pump, restaurant, or shop.
okelie dokelie
I guess it´s will never succeed then..
Sorry, I should clarify again, although I've already explained it in this thread:
The merchants already pay a fee per transaction to the banks. The banks are going to take a portion of that fee and give it to Apple.
It'll succeed just fine.
People are not aware of other country rules.
Because in the US people don't even imagine how's life in other countries, the big companies and media, just show people what they want people to perceive. Do you think Americans really understand how a country can have payed vacations or universal health care? Or that the most popular mobile system in some countries is pay as you go, with free unlimited voice call with anyone on your network for just 8$ a month, with no obligatory contract. And the list goes on...
Because in the US people don't even imagine how's life in other countries, the big companies and media, just show people what they want people to perceive. Do you think Americans really understand how a country can have payed vacations or universal health care? Or that the most popular mobile system in some countries is pay as you go, with free unlimited voice call with anyone on your network for just 8$ a month, with no obligatory contract. And the list goes on...
Thats not how it works. Actually its more like the merchants will charge the highest price the market can profitably sustain regardless if the payment type is cash, credit cards, Apple Pay or not.
Cash is by far the easiest to steal hence the reason companies went with credit cards. Credit cards are slightly less easy to steal than cash. Apple pay is less easy to steal than credit cards.
With Google Wallet, you of course get your usual rewards on cards that go by purchase amount.
What you might not get rewards for, is if you use a store specific card. I can't think of any that I personally use over my major cards.
For instance, I have a Sears card but I never have it with me, so I have the checkout person enter my Sears reward number and I pay with my Mastercard that gives me miles instead. And with CVS, grocery, etc, they scan my customer card on my key chain or in Google Wallet or Apple Passbook.
Now, if Apple has a deal where CVS has my CVS award card associated with my Apple Pay account, that would save a few seconds at checkout, so I like that (although I can understand if some don't).
I can't speak for the person you're replying to, but my own grown daughter started using NFC on her Android phone in a big way several years ago, when her child was very young, and she was often at checkout counters with him in one arm, and her phone in her other hand.
Your understanding is incorrect. All NFC payments are ranked as Card Present.
Nonsense. In what way are other setups "much more prone to fraud" at retailers?
Ah thanks for the heads up. So over there you still need to swipe and show ID? I can understand why Apple wanted to push for easier payments (and take a cut of it) now.
What's interesting with all this, is that Apple requires you to enter your ID password every X minutes to prevent iTunes shop purchasing errors. Will this have similar protection I wonder? Or will Apple not bother so much because it's not them that will lose out?
Ok- pay, since they've earned it. I think you get my point and can stop picking the posts apart now.
Guess one of the ways Apple Pay will get more adoption by consumers asking if the merchant uses Apple Pay! Crazy I know!
Let's just forget about the major security improvement with Apple Pay don't you also carry your phone with you wherever you carry your wallet? With Apple Pay, you'd have to do less work no showing valid I.D., no "Sir you need to sign the back of your card to validate it."
It's a tough life, I know.
I think this is the source of the problem...
Actually I think that this is also the reason for the Apple Watch not being waterproof. They did extensive math and statistical research and found out that having a waterproof Apple Watch would encourage people to go for a swim. Considering the amount of drowning accidents out there this would mean a higher risk of losing paying customers. Easy solution - discourage them from going into the water: less deaths, more cash flow. You're welcome.
Now thieves will not only steal your phone, they'll cut your finger off too. Minority Report here we come.
Well until they find a way to keep your detached finger alive and coursing with blood, I think you'll be ok. Remember TouchID doesn't read just your fingerprint. Thankfully, Apple chose to improve the technology from the 60's. TouchID reads the underlying vascular bed as well. And I can tell you from personal experience while shoveling snow, it works. When my fingers are blue because the blood vessels are constricted, I'm not getting onto my phone using TouchID.
There are many cards out there (every card I use) that gives you rewards based on where you shop. For instance, right now I get 5% back at grocery stores with an amex blue cash and 5% back at gas stations with chase.
If you use google wallet, the credit card thinks you are buying something from google so it does not give you rewards. When I read apple's statement it says get ALL your same rewards so I am hoping this means I still get 5% at those places. If not, I will not use apple pay and I cannot imagine why anyone else would either. Leaving 5% on the table is crazy.
The banks already pass that fee on to the vendors at rates from 0.25% to 3.0% plus per transaction fees and/or swipe vs manual entry.
I am sure that at the calculated volumes that Apple will process, they negotiated a nice deal with the banks.
Banks are just as excited because as it becomes easier than cash to pay, they will get a piece of the transaction that they may not have before.
Also, they are also invested in the POS (Point of Sale) systems and finally can roll out NFC POS's in higher volume than before. Which, as I stated before, will enable consumers to more easily pay, and possibly more frequently.
This will result in yet another fee the merchant has to pay in addition to the fee they're paying the bank. The consumer ultimately pays somehow, whether the cost of the product increases, or even eventually having to pay the fee themself, which is a very real possibility. Merchants are in it to make money and they'll somehow pass off the cost (as will the banks) to the consumer. The cost may very well be hidden, but it will be there nevertheless.
Now thieves will not only steal your phone, they'll cut your finger off too. Minority Report here we come.
LoL, weren't they saying that when the 5s came out? A year later, and I have yet to read that some dummy has stolen an iPhone 5s and cut off the finger(s) of the owner so that he could hack the phone.
Nice troll though...
what I´m pointing out is a merchant/bank/cc-company is not interesting in losing income...
assuming a transaction is safe, how do you add a layer ontop without adding to the price?
as I said earlier here we have a law basically saying if a product is 100$, thats the price no matter how you pay...
sure using cc is safer than having a lot of cash in your store, but if I´m going to introduce NFC as payment... I´m not willing to lose money on every transaction compared to cc or cash...
and simply raising the price makes my customers choose another store
Not in the US and not on my iPhone. The only requirement is that the initial log in after a reboot must be completed using the device password. The same goes for the iTunes store.
Well technically he's correct. Except it's the merchants passing the fees on to the consumer. Prices are typically cheaper in stores that are cash only.
Do prices rise because of merchant fees? Yes, that's the way it works. But I think what you are arguing is semantics here. The prices for credit and cash are required to be the same, meaning no fees for the customer.
So over time does the customer pay a bit more because of merchants raising prices? Well, only if the merchants fee ends up increasing. Nobody has said that will happen, as I've said before in this thread, Apple has (supposedly) created an incredibly secure system that may actually save the banks quite a bit of money from the rampant credit card fraud we have going on. Whenever a merchants costs go up, so does the price. No different than when minimum wage increases.