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

[Keirasplace]

Walmart is the store for illegal aliens. Cash will do...

Considering a lot of their staff is on food stamps, and can barely afford to shop at Walmart, maybe that's were the cash/food stamps comes from... Yes, they are THAT cynical. I'm surprise they're not giving pay loans right at the counter....

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It's not too hard to get a cheap smartphone, and to pay for it and the data plan with cash (via pre-paid). You don't need good credit or an income over a certain amount to do it.

While that's true, those people don't even buy apps, downloads apps and browse the net on their slow bricks. Think they're the first to use a phone to pay?

 

[Makosuke]

None of those comments address the privacy and security issues, of course, since the former is basically the point of the whole thing (it's intentionally constructed to provide retailers with as much info about you as possible) and the latter is fantasy for a cloud-based system. Those are why I'd never touch the system, even if they weren't colluding to exclude the competing system I prefer, and even if it wasn't hugely cumbersome to use.

Also, an aside, have you ever tried to get the PoS scanner to read a barcode off your phone at a store? I'd say the success rate is 20% at absolute best--the checker almost always ends up having to key it in at any store I go to. They'd sure better be planning on upgrading scanners at the checkstands to at least whatever airports use if they want to have any hope of this not being a complete disaster in terms of speed when three quarters of people who try to pay end up having to stand there for two minutes while the checker fumbles typing in the number manually after the scanner fails to read it.

With current hardware it'll end up being slower than writing a check just on trying to scan the QR code alone...

 

[Boston Bagger]

Social Security and Drivers License Required - ARE YOU KIDDING ME

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.

Does not expect is a far cry from “WILL NOT BE REQUIRED”. And why was it required in the first place. I wouldn’t touch this payment system with a ten foot pole.

 

[flur]

That's exactly how the Starbucks mobile payment system works, which is quite successful. Just saying.

How Starbucks payment works:
1. Swipe the little icon that automatically pops up on my lock screen when I'm in Starbucks.
2. Scan the phone.

There's no 5-6-7 step process here.

Unless MCX makes the app passport compatible (and from what they've said about how it works, that seems unlikely), it will always be a lot of steps. And it will always be a lot of steps on the non-apple phones.

 

[flat five]

Haha, yeah, I'll just stick with normal money, thanks.

heh, yeah.. define 'normal money'

the u.s constitution said we can't use anything other than gold and silver as tender and now, not only is the u.s dollar backed by nothing-- if you try to buy something with gold or silver, it's actually illegal and you can be arrested for it.

this whole "we want credit cards" etc is shooting yourselves in the foot.

when you buy something on credit, where does the money come from? do you think if you purchase something on credit that costs $100, the bank moves $100 from their account into yours or the sellers? they don't.. when you buy something on credit, the money is created out of thin air.. where does it get it's value? from all the rest of the money in circulation..

every time you buy something on credit, you make everybody else's dollar weaker. (inflation)

basically, take a loan from a bank, they create the money based on nothing (i.e.- they haven't created money, they've created currency).. now you're either left with paying back this currency based on nothing and further expected to add interest on top of it -or- default on the loan in which the bank will swoop in and grab the real asset.. biggest scam e v e r

 

[Ntombi]

So most customers don't have major credit cards...yet a significant number of people who don't have a credit card are going to have a smartphone? That fails the sniff test.

He didn't say have, he said used in those stores. There's a big difference. I have credit cards, but for day-to-day purchases (like at supermarkets, pharmacies, and places like Target), I use my debit card (cash for Target since the hack). For purchases where I want to make sure I have good protection, or larger purchases, I use my credit card.

But I see no need to use my credit card for paper towels.

That does not mean I would sign up for CurrentC; using a debit card is very different to me than hooking my bank account to some store's cloud.

 

[britboyj]

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

A number of Wal-Mart customers don't use credit cards because many of their customers don't even have bank accounts, for a varying number of reasons, so CurrentC is equally useless to them, but that's not the problem they're trying to solve is it? It's credit card fees.

 

[BigHonkingDeal]

But I see no need to use my credit card for paper towels.

I pay everything with my AMEX card even if it costs 50 cents, my AT&T phone bill all groceries etc.

My wife is totally addicted to the reward points and bought some great stuff with them over the years,

I get one monthly statement and a year end summery with all expenses itemized for tax purposes. Couldn't be easier.

I don't think I ever even seen on of those new 100 dollar bills

 

[sblemmy]

Given 2013 data from the US Department of Commerce, I'm willing to believe that most customers don't use major credit cards. I rarely pay for anything with a credit card and instead opt to use my debit card. It's easier to manage my finances that way. However, I, and I assume most customers like me, process their debit cards as a credit card at the POS. If I did it as a debit card, my bank charges me a $0.50 POS fee whereas if I select credit, the transaction is processed through the Visa network and the merchant pays the fee.

 

[milo]

It's not too hard to get a cheap smartphone, and to pay for it and the data plan with cash (via pre-paid). You don't need good credit or an income over a certain amount to do it.

It's also not too hard to get a credit card. You don't need good credit or an income over a certain amount to do it.

Credit card companies are notorious for flooding college students with card offers, even if they've never had a job and have zero credit history.

He didn't say have, he said used in those stores. There's a big difference.

True that he said used and not have. But those stores also include high end ones as well. And as you pointed out, you use debit or cash for smaller purchases and credit for more expensive ones - he's talking about number of transactions which may not favor credit, but compared by dollar value may swing way more toward credit.

 

[ProfessorHenry]

So it's not that bad as has been rumored previously.

 

[iJandro]

ah yes..that's nice...and...what about those hacks? whats that?? no comment you say???

 

[Eraserhead]

If only 25% of consumers pay with credit cards, why would CurrentC fret about losing the service charges to credit card companies? That doesn't make logical sense, does it?

It does because those credit cards are used for large payments which make up a lot more than 25% of revenue.

I pay everything with my AMEX card even if it costs 50 cents, my AT&T phone bill all groceries etc.

My wife is totally addicted to the reward points and bought some great stuff with them over the years,

The fact that you even have an Amex card makes you substantially richer than average.

 

[eelpout]

ah yes..that's nice...and...what about those hacks? whats that?? no comment you say???

they did address that; in the press conference last week. though they declined to name who the email provider they were using, the company that really was hacked, was.

 

[SixtyK]

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.

Sometimes I simply do have to go into one of those MCX-affiliated merchants. When that happens, you can bet that from now on I will NOT be using cash. They can take my 2% with every swipe and like it.

 

[BigHonkingDeal]

The fact that you even have an Amex card makes you substantially richer than average.

In the UK maybe..... over here lot's of not richer than average people get them.

 

[My1stMacWasLisa]

"most people don't use credit cards"

With this hideously flawed payment system in place and draconian contracts preventing retailers from using any other payment option, these store will rapidly become cash only retailers.

 

[elvisimprsntr]

In other news. It's beta.

I'm actually hoping MCX makes a go of it and reaches a significant percent of US transaction volume. Just enough to make the CC companies/issuers nervous, to increase my already substantial card benefits/rewards/cash-back to keep me from switching. Competition is a good thing.

What I despise is a retailer banning any particular legal form of cashless payment, albeit ApplePay, Google Wallet, SoftCard, etc., in favor of their own competing system. If anyone else thinks the same way, sign the petition.

https://petitions.whitehouse.gov/pe...ing-anti-competitive-collusion-among/Ms9VCP9y

 

[hiroden]

In Canada, several big banks launched/are going to release their own mobile payment app that will work with Android phones' NFC... but not iPhone6 as it is locked to Apple Pay only.

I really hope Apple is already talking with the Canadian banks to get Apple Pay working.

 

[Eraserhead]

In the UK maybe..... over here lot's of not richer than average people get them.

Do households who earn less than $50,000 a year get Amex cards? Because that's the median household income in the U.S.

 

[kugino]

don't know why this continues to be a front page story...it was interesting for about five minutes.

 

[BigHonkingDeal]

Do households who earn less than $50,000 a year get Amex cards? Because that's the median household income in the U.S.

Looked this up real quick..... Looks like it's $15.000

http://www.americanexpress.com/lacidc/pdfs/apply_pr_eng.pdf

 

[JGowan]

"Most customers do not use major credit cards" -——— LOL!!!!!!!!!!!!

 

[Tech198]

hehe....

Its good for a company (a bad company at that), to just "assume" the wrong thing...

Particularly, when they just got hacked....


Kinda puts it all into perspective..... I would of expected none the less.

 

[avanpelt]

MCX keeps referencing Starbucks but there is an inherent shortcoming with the security of the Starbucks app and any QR code-based system: a QR code is dead simple to copy/screenshot.

Here in my area, one of the local radio DJs frequently tweets out a screenshot of the QR code for a Starbucks card he's loaded and lets people use the card until it's depleted. Really generous thing to do but it showcases the inherent lack of security with QR codes.

MCX has really painted themselves into a corner. If they stick with QR, they'll be using an inferior method; but if they go with NFC, any merchant that accepts payments with their system must also accept Apple Pay and Google Wallet.