MCX Executive: Social Security Number Won't Be Required, Most Customers Don't Use Major Credit Cards

[caesarp]

He didn't say all the steps to use CurrentC . . .

Contrary to what the COO says in the article, the steps for CurrentC are:

1. wake phone
2. open app
3. enter passcode (this is per CurrenC's own support documentation)
4. click pay
5. scan QR code

I have used Apple Pay. Here's how that works:

1. hold phone to NFC scanner while holding finger over TouchID button (done!).

So he didn't give all of the steps.

 

[Lord Hamsa]

MCX Executive: Social Security Number Won't Be Required, Most Customers Don't Use Major Credit Cards

"Lovely little graveyard there, isn't it," he added, as he started whistling a tune.

 

[engg2000]

"Another issue has been CurrentC's ability to link to a customer's bank account, allowing merchants to avoid paying costly credit card fees, a feature Rankin says is actually based on customer preference."

So Customers want to save Merchants the credit cart fees and pay with debit or direct pay from the user's bank account rather than collect points etc?

 

[duaneu]

I wonder if Apple will let them pu their app in Passbook. Starbucks uses QR codes and you don't have to open an app. It just pops up on your lock screen when you're in the store. Or how Passbook knows you're at the airport and displays your boarding pass.

 

[gavroche]

You know, when you enter into a contract or agreement, you're required to adhere to the contract or agreement too. How is this any different.

You can fault them for joining the consortium. You can't get pissy at them for adhering to the requirements.

I don't think he was complaining that they were part of the consortium, or had to adhere to its terms. It's that they borderline lied about it, didn't want to own up to it. And it's that who you wish to trust with your personal info...

 

[caesarp]

You know, when you enter into a contract or agreement, you're required to adhere to the contract or agreement too. How is this any different.

You can fault them for joining the consortium. You can't get pissy at them for adhering to the requirements.

Cause they lied to the public about the reason why.

 

[skellener]

75 percent of all purchases made at the 50 MCX merchants (including Walmart, Target, Lowe's, and more) are done with cash, debit cards, and gift cards, rather than with Visa, MasterCard, and American Express credit cards.

So that's 75 percent of customers that do not give you any data whatsoever about themselves anyway.

 

[osofast240sx]

[url=http://cdn.macrumors.com/im/macrumorsthreadlogodarkd.png]Image[/url]

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Composed of a large group of retailers aiming to introduce the QR code-based "CurrentC" payments system, Apple Pay competitor Merchant Customer Exchange, or MCX, has been in the spotlight in recent weeks after the removal of Apple Pay support from Rite Aid and CVS, two prominent MCX members.

Following a hacking incident and negative press focused on CurrentC's convoluted QR code payment process and privacy issues, MCX has been scrambling to reverse the public's negative perception of CurrentC.

After a press conference last week where executives suggested MCX was under attack for "challenging the status quo" of large, entrenched payments systems, MCX chief operating officer Scott Rankin did an interview with USA Today to clear up more misconceptions about MCX and CurrentC.

One of the major privacy complaints about CurrentC centered around a requirement that users provide both a social security number and a driver's license when signing up. According to Rankin, this is only necessary for the pilot test, and he does "not expect to have those requirements" when CurrentC launches in early 2015.

Another issue has been CurrentC's ability to link to a customer's bank account, allowing merchants to avoid paying costly credit card fees, a feature Rankin says is actually based on customer preference. 75 percent of all purchases made at the 50 MCX merchants (including Walmart, Target, Lowe's, and more) are done with cash, debit cards, and gift cards, rather than with Visa, MasterCard, and American Express credit cards.

MCX has previously said CurrentC will accept debit and credit cards in addition to connecting directly to a checking account, and Rankin downplayed the focus on connecting to a user's bank account, saying that he doesn't expect it to be the most prevalent CurrentC payment method.

Rankin also addressed the QR code payment process, which has been described as "convoluted" by the media. He called it "frictionless," but even described in his own words, it requires several steps beyond Apple Pay's one-finger Touch ID checkout process. MCX has said that it will explore NFC in the future if necessary.

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Finally, Rankin once again addressed the exclusivity agreements that bind all MCX members, stating that exclusivity terms are "closer to months than years."

Rite Aid and CVS, as MCX members, were required to cease accepting Apple Pay to remain part of MCX, but are free to leave at any time. Meijer, another MCX member, has opted to continue offering Apple Pay support in its stores, It is not clear if Meijer has left MCX or if it is ignoring exclusivity restrictions. Rankin confirmed there are no fines for companies that leave MCX, but he did not address the large sums of money companies have already invested in the program.

Rankin's full comments on CurrentC and MCX can be found at USA Today. MCX executives have plans to speak on CurrentC at the Money 20/20 conference in Las Vegas this week, further explaining how CurrentC will benefit consumers.

Article Link: MCX Executive: Social Security Number Won't Be Required, Most Customers Don't Use Major Credit Cards

Word games he conviently does not add debit cards with a visa or master card logo in his duslounal assessment. These debit cards are being used as credit cards.

 

[samcraig]

"Another issue has been CurrentC's ability to link to a customer's bank account, allowing merchants to avoid paying costly credit card fees, a feature Rankin says is actually based on customer preference."

So Customers want to save Merchants the credit cart fees and pay with debit or direct pay from the user's bank account rather than collect points etc?

Grammatically, the sentence is correct. You are misinterpreting is.

Another issue has been CurrentC's ability to link to a customer's bank account, a feature Rankin says is actually based on customer preference."

The "allowing merchants to avoid paying costly credit card fees" is just a reference to why this is of benefit to merchants.

 

[MICMAC247]

Contrary to what the COO says in the article, the steps for CurrentC are:

1. wake phone
2. open app
3. enter passcode (this is per CurrenC's own support documentation)
4. click pay
5. scan QR code

I have used Apple Pay. Here's how that works:

1. hold phone to NFC scanner while holding finger over TouchID button (done!).

So he didn't give all of the steps.

Agreed. Outside of potential security issues the entire process seems cumbersome. Not to mention the potential for cashier error putting a delay in the checkout process. There would likely also be a learning curve for the cashier on what steps need to be taken to get the POS ready to accept this type of payment.

 

[LaidBack]

75 percent of all purchases made at the 50 MCX merchants (including Walmart, Target, Lowe's, and more) are done with cash, debit cards, and gift cards, rather than with Visa, MasterCard, and American Express credit cards.

How is this possible? Do only 25 percent of the shoppers at these retailers have access to credit cards? Using a credit card costs the consumer the same as using cash, but you don't have to pay for the purchase for nearly a month.

 

[tasset]

I have been reading up quite a bit on the whole payment systems and retailer relationships since this debacle began. I actually do believe the mindblowing statistic that the vast majority of transactions (in quantity) in Walmart do not go through credit cards. HOWEVER in terms of revenue credit cards do dominate and growth has accelerated. Which makes sense considering large ticket items are either charged due to lack of immediate funds or in my opinion a CYA as a customer. I suspect the large ticket items (TV's, Xbox, iPads) the retailers have slim margins and/or used as a loss leader and perhaps they believe they can change consumer behavior. I have to believe the odds of that are impossible with or without a frictionless payment system.
If these guys had kept their mouths shut and allowed CVS to continue with ApplePay they 'might' have had the slimmest of shots as an alternative. Now their name is poisoned.

 

[dannyyankou]

But I wanna skip the part where I say "i wanna pay via mobile"

 

[WrQth]

How many times have you swiped your credit/debit card choosing credit as how to process the transaction and it still asks for your debit PIN unless you cancel and choose credit? Most people just say to hell with it and enter their PIN but that hardly means that's the way they wanted to pay (This is how MCX has arrived at the idea that customers prefer it versus paying as credit.)

 

[Yojimbo007]

Give it up Mcx..
U know you have an inferior system.. Stop trying to cram it down peoples throats !

 

[Bare]

I wouldn't be surprised if most Walmart shoppers didn't use credit cards but Lowes and even Target, I'm skeptical.

How many Wal Mart customers actually have checking accounts? Everything I'm reading suggests that there is limited availability to banks at low-income levels. Heck, Wal Mart's own employees have to have their paychecks cashed at Wal Mart (for a fee) just to get paid because they don't have bank accounts.

My guess is that reliance on credit cards is much more prevalent than this guy suggests, which brings into question all his other assertions.

 

[brendu]

i still never use this regardless

doesnt seem nearly as secure as apple pay

So far cash is the only thing that is more secure than Apple pay and even that is debatable. I'm impressed with the thought apple put into this system and ensuring they have very little liability. Essentially there isn't a reason to hack apple over this. The banks hold your info so the liability stays where is always has been. I also love that merchants don't get my credit card info (if I am not mistaken). That is huge.

 

[AppleAndroidFan]

Haha, why would they even disable Apple Pay in the first place if most of their customers allegedly would prefer their MCX method because it links to their bank account instead of a credit card?

 

[Bare]

Still doesn't change the fact that this system is designed to largely solve the retailers' problem with CC companies and not to make paying easier for customers.

or more secure. The two reasons behind the MCX are 1) avoidance of 2-3% credit card fees, and 2) ability to gather more data about customers. Neither of those help customers.

 

[TomMcIn]

MCX Thoughts

1. If so few people are using Credit Cards, why don't the MCX partners just stop taking credit cards and pass the savings back to your customers. I bet the stores are including the credit card costs in all the purchases and pocketing the extra profit they make from the 70% that don't use credit cards.
2. The way to avoid the hassle of CurrentC is to memorize the list of the MCX clients and don't go into their stores.
3. "The road to Hell is paved with good intentions and littered with sloppy analysis"

 

[milo]

Doesn't have to be an iPhone. Could be a cheap pay-as-you-go android WalMart sells. Just needs a camera and a data plan.

Sorry, I still don't buy the idea that there's this big group of people who have smartphones (and I specifically said smartphones, not iPhones) but no credit cards.

The selection the population that signed up for Apple Pay and the selection of the population that regularly shops are Walmart have very little overlap.

But the selection that shops at walmart and doesn't use credit cards has much overlap with people using smart phones? Not to mention that Walmart is just one of a number of MCX partners, many are higher end places.

 

[UnfetteredMind]

You know, when you enter into a contract or agreement, you're required to adhere to the contract or agreement too. How is this any different.

You can fault them for joining the consortium. You can't get pissy at them for adhering to the requirements.

But then why was NFC on already and being used to process contact less credit cards and Google Wallet payments? Why did they only turn it off when ApplePay came around? This is where the big problem came in, things were working initially and then they turned it off (vs never having it enabled).

 

[osofast240sx]

3415 one star reviews how long before CurrentC is gone?

 

[coolfactor]

Most customers don't use major credit cards?

What is he on drugs or is lying his second nature?

If most people don't use major credit cards, how did so many people sign up to use Apple Pay the first week?

That assumes that the majority of their customers are Apple iPhone users. Hardly likely.

 

[hdgarcia]

Still not interested. Convoluted, requires direct linking to a bank account which is scary, and overall not an elegant solution. NFC payments are the future. Apple Pay and Google Wallet are the correct solution.

Agreed, linking to a bank account is dangerous. Once you authorize it, it is near impossible to force them to not be authorized. Unless things have changed in the last few years, you will have to code the account and get a new account. I had issues with this in the past, a mortgage company that sold my mortgage to another bank was continuing to pull payments, my bank said that they couldn't stop them since I had authorized it, the only thing they could do is close the account and open a new one.