I didn't know that banks actually use insurance to cover fraudulent charges, but if Apple Pay results in fewer mass data breaches (or rather, fewer customers affected by such breaches), wouldn't it result in cheaper insurance premiums? They do pay the insurance premiums from profit after all.
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Just used Apple Pay on my watch
- Thread starter Juan007
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I didn't know that banks actually use insurance to cover fraudulent charges, but if Apple Pay results in fewer mass data breaches (or rather, fewer customers affected by such breaches), wouldn't it result in cheaper insurance premiums? They do pay the insurance premiums from profit after all.
Shame. I only go to Starbucks once a week. I started going because of the app, passbook, and the rewards. They just made it too easy. If Panera or Atlanta bread did the same kind of thing, I'd probably give up on Starbucks.
Double clicking the side button will automatically bring up the default card (which you preselect in settings), but you can always switch to a different card on the fly.
A certain percentage of every credit card transaction goes to the banks and card issuer. The exact percentage depends on the total amount of transactions and the number of transactions. For new/small retailers, it can be as high as 5%. For someone like Costco, it's much, much smaller.
This fee is split several ways. A certain percentage goes to the card owner's bank, another to the retailer's bank, and another to Visa/MC/AX etc. Apple (or any NFC vendor) will take another cut out of this fee. This cut does NOT come from the retailer, so there is zero downside for them to adopt NFC payments.
In fact, it's a great benefit for larger retailers as the time involved for each transaction is reduced. There is no time wasted with swiping cards, "let me see the back of your card/signature verification", printing out the charge slip, signing the slip, and then dealing the paperwork. It's just one click, a beep, and done!
The banks and Visa/MC/EX are happy to give Apple a small cut because it cuts way down on fraudulent charges. So much so that American Express is actively encouraging the usage of Apple Pay with their new 30 second national TV ads.
Make no mistake, this IS the future. Whether it's Apple Pay or some other NFC vendor, plastic cards will slowly disappear.
This fee is split several ways. A certain percentage goes to the card owner's bank, another to the retailer's bank, and another to Visa/MC/AX etc. Apple (or any NFC vendor) will take another cut out of this fee. This cut does NOT come from the retailer, so there is zero downside for them to adopt NFC payments.
In fact, it's a great benefit for larger retailers as the time involved for each transaction is reduced. There is no time wasted with swiping cards, "let me see the back of your card/signature verification", printing out the charge slip, signing the slip, and then dealing the paperwork. It's just one click, a beep, and done!
The banks and Visa/MC/EX are happy to give Apple a small cut because it cuts way down on fraudulent charges. So much so that American Express is actively encouraging the usage of Apple Pay with their new 30 second national TV ads.
Make no mistake, this IS the future. Whether it's Apple Pay or some other NFC vendor, plastic cards will slowly disappear.
Thanks for that info. I guess what I was curious about was on the terminal side. Do I select the card type that matches the card type on the Apple watch or does it auto detect the card type when I hold the watch near the reader? Sorry for not being completely clear on that...
You do that before the fact. You select "Credit" on the terminal (or inform the cashier that you'd like to pay with credit if using a CC), then pay with your Watch with the appropriate card. If you normally pay with a particular card on a regular basis, then you pre-select that as the default card in settings. You can do this with any supported card, whether credit or debit.
Thats changing next year, won't be surprised to see Apple Pay accepted at Costco when the switch is made to Visa. Plus, Costco accepts debit as well anyways.
http://www.wsj.com/articles/costco-names-citi-visa-as-credit-partners-1425302174
The decision to accept Apple Pay lies squarely with Costco, as both Amex and Visa support Apple Pay.
Agreed, but I'm sure Costco will be updating their terminals when they make the switch and will probably have NFC capabilities. Time will tell if they allow it to be used.
I used my watch to pay at Starbucks today. It was pretty cool and really straight forward.
I can't wait for Apple pay to come to the UK.
I can't wait for Apple pay to come to the UK.
I just returned home! Taz stated it perfectly. I could not have stated it better!
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Well CostCo and Apple have not had the best relationship. CostCo did not carry Apple Products till just the last couple of years. I am rooting for this to happen as a consumer. I am in Banking Management as well as a banking consumer and my Debit Card has been compromised 3 times over the last couple of years!
I just returned home! Taz stated it perfectly. I could not have stated it better!
While banks may not be able to drop fraud coverage, they do pay the fraud insurance premiums from profit. They also have to pay for point of sale fraud monitoring from profit. Supporting Apple Pay should in theory lead to a decrease in insurance premiums (fewer customers affected in major data breaches) and less extensive fraud monitoring, which cuts down on costs.
I think your assertion that banks are not happy about having to pay the Apple Pay fees is overstated.
Jay,
I agree with what you are saying. The issue that I have run into at the bank I work for as well as the one that I bank at is they do not understand or believe in Apple Pay and I will continue to plug away till they do.
Some Banks Get it and others still are on the sidelines!
I love being able to use my watch for payment. My first and so far only hiccup came last night at Wendy's, their machine was malfunctioning. It's an outdoor unit at the 1st drive thru window. So until they fix that, I either must go inside or pray it's a shift where they're doing payment and delivery at the 2nd window.
I've been using Apple Pay at my local grocery store Sprouts for a while now (since they updated their POS to support it) and used my watch last week. So much easier then pulling out my phone! Spoiled I know, but love the simplicity. The future is here.
I actually had issues before with my iPhone at Sprouts, but my watch worked fine. I suspect some of the terminals may be broken. You need to hold the watch / phone up to the black scanner thing with the lights (not the LCD display).
Best Buy, a MAJOR player in CurrentC, just announced they are going to be backing Apple Pay. This goes counter to what they've been saying since the service was announced, because they realize it's much better for their business.
The banks will fall in line too, because it's cheaper to deal with Apple Pay than constantly pay for all the identity theft cases. Yes, we've seen that can still happen, but it's going to be a lot less in the coming years because of things like Apple Pay.