MCX Says Merchants Doing What's Best for Customers, Being Attacked for 'Challenging the Status Quo'

[Judas1]

The cc folks are giving apple a cut from the less fraudulent hacks on their systems, and for effectively providing th CC companies security in transactions.

And that cut is from the banks more lucrative mobile payment fees. Thats why these merchants have been working on their own mobile payment system to bypass the extra fees.

 

[FieldingMellish]

CurrentC. Currency. Whoa! I'm blown away by the sheer cleverness.

 

[madsci954]

I'll do a little further reading. But if you think that banks would give up even 0.01% let alone 0.15% to Apple, you've gotta be really naive. They know that people buy Apple regardless, and they'll use apple pay regardless. They don't have to give Apple anything. Apple is far more likely to be getting paid from the merchants.

The banks are getting extra fraud protection; if a merchant gets hacked, all they'll get is the one time use cc token, which is 100% useless. And the banks I use and been advertising Apple Pay since it was announced, they are aware of how much they're loosing in that 0.15% and are willing to loose it.

 

[SlCKB0Y]

It's .00015 or something like that. All I know is you are missing some zeros.....

It is 0.15%

15c per $100.

 

[BruiserB]

I'll do a little further reading. But if you think that banks would give up even 0.01% let alone 0.15% to Apple, you've gotta be really naive. They know that people buy Apple regardless, and they'll use apple pay regardless. They don't have to give Apple anything. Apple is far more likely to be getting paid from the merchants.

NO, you're far more likely to be wrong! There are numerous articles detailing exactly how ApplePay works. If you would read one of them you would know how it works and you wouldn't have to make stuff up to fit how you want to think it works.

 

[SlCKB0Y]

Thats why these merchants have been working on their own mobile payment system to bypass the extra fees.

Bypass EXTRA fees? Huh? The MCX system bypasses ALL the fees..and gives them a huge amount of customer data.

Are you for real? I get the feeling i'm being trolled here...

 

[oddnendz]

It is 0.15%

15c per $100 if that hurts your head less.

Please notice that I edited it..... thanks.

 

[SlCKB0Y]

Please notice that I edited it..... thanks.

I edited mine too!

 

[HEK]

CurrentC has published text that specifically states that retailer partners have to exclusively sign on to CurrentC for mobile payments (what's the definition of that, anyway? A credit card is pretty mobile last time I checked.)

Now they are saying that it's NOT exclusive, and retailers like CVS can offer both CurrentC and NFC/Apple Pay/Google Wallet.

Which is it, MCX? You are scrambling and contradicting yourselves. Desperation is in the air.

Talk is cheap, but the contracts the partners signed, are binding no matter what the CEO says in press conference. He said any partner can leave.....but the money stays....no additional penalties. Hehehe. Now remind me, how does a ponzi scheme work again? Promise all sorts of things, take the money, then deliver **** couple years later. The rubes.. Er customers will love the system, they will give you their first born for the coupon offers. Don't worry you can mark the stuff up before you offer the coupons. Grins... after all have you ever bought a piece of furniture that wasn't on half off sale. Hehehehe

 

[StyxMaker]

And that cut is from the banks more lucrative mobile payment fees. Thats why these merchants have been working on their own mobile payment system to bypass the extra fees.

Wrong, the merchant pays a negotiated, lower 'card present' fee to the bank, not the higher mobile fee. Apple gets 0.15% of that lower fee from the bank. The merchant pays a lower fee for an Apple Pay payment.

 

[26139]

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Following the publication of a blog post earlier today outlining some details of its upcoming CurrentC mobile payments solution and disclosure of a hack resulting in unauthorized access to users' email addresses, Merchant Customer Exchange (MCX) held a conference call with members of the press to further address questions and concerns.

As a result, MCX certainly appears to be placing the blame for its member retailers' refusal to accept Apple Pay on the merchants themselves. Asked whether Apple Pay and MCX's CurrentC solution should be able to exist side-by-side, the executives noted that believe they will in the future and that it will take two or three major players in mobile payments to allow the entire market to thrive.

But pressed as to why some retailers such as CVS and Rite Aid have shut down NFC entirely rather than allow unofficial Apple Pay payments in their stores, Davidson argued that merchants know their customers best and are making the choices they believe are right for their customers. He said the merchants believe customers want more than just mobile payments, and CurrentC's integration of payments with loyalty cards and coupons will in his opinion prove to be the best solution.

Article Link: MCX Says Merchants Doing What's Best for Customers, Being Attacked for 'Challenging the Status Quo'

These two statements don't make any sense.

If they can coexist, why would NFC be turned off for a solution that's not available?

 

[BruiserB]

Slide 11 Shows how the fee is calculated.

https://wsdvw1.wsdsecure.com/~ftpar...rtners-Research---Apple-Unveils-Apple-Pay.pdf

It's true banks don't want to give up profit. Right now they pay for fraudulent charges from their cut. I don't know what fraud actually costs the banks, but I'll bet it is more than the 0.15% the banks pay Apple. Say fraud costs the banks 0.25%....If ApplePay eliminates the chance of fraud on a transaction, then the bank gives up 0.15% rather than 0.25% and makes 0.10% more profit. What's so hard to understand about that?

 

[Judas1]

Wrong, the merchant pays a negotiated, lower 'card present' fee to the bank, not the higher mobile fee. Apple gets 0.15% of that lower fee from the bank. The merchant pays a lower fee for an Apple Pay payment.

Where are you getting this? My understanding is that merchants pay the the lower "card present" fee to the banks, and an extra fee to Apple, making their mobile payment fee higher than a regular "card present" fee.
edit: See above post pdf. It show the same percentage processing fee. That looks likes the mobile processing fee. It doesn't show that merchants get any benefits at all.

 

[HEK]

Very intriguing that two credit card companies are on board with them? That's half of the major four.

Romanian Express Card and Uganda President's Club Card are not part of the major four. Oh wait, they didn't name them did they.

How that song go again.....Tell Me Lies.. Tell Me Sweet Little Lies......

 

[raybo]

What he means by "challenging the status quo" is screwing credit card companies. I guess we're all supposed to hate Visa, Master Card and Amex and by extension Apple because they worked with the credit card companies to implement Pay.

MCX is using checking and gift accounts - no credit cards for now - to allow the merchants to bypass charges from the credit card companies. They are also attaching reward card info so the customer won't have to swipe a separate card.

I don't know why everyone here is so upset at this...

 

[SixtyK]

Actually, I believe CurrentC was announced in September 2014.

Source: Leading Retailers Form Merchant Customer Exchange to Deliver Mobile Wallet
Business Wire - August 15, 2012

"Development of MCX’s mobile application is underway. The initial focus centers on offering merchants a mobile-commerce solution capable of seamlessly integrating a wide range of consumer offers, promotions and retail programs. The application will be available through virtually any smartphone."​

It was not identified by the CurrentC brand trademark, but was definitely announced at that time.

 

[StyxMaker]

Where are you getting this? My understanding is that merchants pay the the lower "card present" fee to the banks, and an extra fee to Apple, making their mobile payment fee higher than a regular "card present" fee.

Your understanding is wrong. There are several sources that explain the payments, go read one of them.

 

[jouster]

I was in line at Rite Aid a few hours ago. To say the line was moving slowly would be charitable. I can only imagine what it would be like of everyone was using CurrentC.

Enough to make me shop somewhere else, that's for sure.

 

[duervo]

Nothing more than spin doctoring, while insulting the intelligence of the average consumer. Nevertheless, it's not something that people should be surprised to see (which sadly is just a part of the world in which we live.)

I will agree with them on one point, however. They are right when they said that time will tell which payment method will triumph in the long run.

Also, it's rather specious to say that removing the ability for consumers to choose (by disabling NFC) is merely a matter of those retailers giving the people what they want. So, shields should be up for people after seeing that remark. Consumers should be given the choice, and then left to themselves to choose the best option on their own, instead of being treated like farm animals ... on an animal farm.

 

[AdonisSMU]

2550 reviews on the App Store giving CurrentC a 1 star review speak oh-so-loudly!

Well does anyone really look at those reviews before downloading an app? I know a ton of 2 star apps from FB that I know for a fact people are using in droves. However, they are a known quantity.

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I was in line at Rite Aid a few hours ago. To say the line was moving slowly would be charitable. I can only imagine what it would be like of everyone was using CurrentC.

Enough to make me shop somewhere else, that's for sure.

I can't believe you stayed in line.

 

[avanpelt]

I'll do a little further reading. But if you think that banks would give up even 0.01% let alone 0.15% to Apple, you've gotta be really naive. They know that people buy Apple regardless, and they'll use apple pay regardless. They don't have to give Apple anything. Apple is far more likely to be getting paid from the merchants.

I think you should do a lot more reading. You don't seem to know the actual facts about how Apple Pay benefits banks and thus the reason why the banks were so willing to give Apple a small percentage of the fees they collect.

 

[tasset]

Where are you getting this? My understanding is that merchants pay the the lower "card present" fee to the banks, and an extra fee to Apple, making their mobile payment fee higher than a regular "card present" fee.

It has been widely reported, and leaked since Apple does not disclose terms, that because of TouchID/ApplePay The transaction qualifies as "card present" as opposed to other mobile payment methods, and that Apple gets .15% from the banks due to their trust in this technology. Believe me fool, if Apple was getting a cut from any of the dozens and soon to be hundreds of retailers it would be well known in the Internet age. Please come back with some substantiation from "your understanding" sources.
Meanwhile your garbage did encourage me to dig up this report with all kinds of juicy knowledge -
http://www.kc.frb.org/publicat/econrev/pdf/14q2hayashi-bradford.pdf

 

[Irishman]

Banks make the rules for the rates for transactions. You're acting like banks can't tell the difference between mobile and credit card transactions. They can. And they charge more for mobile transactions.

Evidence for the bolded assertion??

 

[farewelwilliams]

Paying in cash is great, but, in the end, that is what the merchants want (although your privacy is much safer). The former Walmart CEO who spearheaded Current C wants VISA to suffer. In that case, I'll use my VISA check card.

well i was assuming if merchants got rid of credit cards altogether. but my point is, they'll never have the ability to get my data

 

[dannys1]

Why i still use cash? I don' have to worry about hackers ...like target. Cash is simple...don't have to worry about all these process and stuff. I support mobile pay...and i still support cash.

Cash in complex for me, losable, damageable, annoying to carry - and then there's change...as soon as I break into a note with change, the change gets lost...it costs me a fortune to use cash.