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  1. #1

    Default Retail Payments—The Reality ...

    ~Retail Payments, The Reality.doc
    http://www.ecommercebytes.com/forums...read.php?25316
    http://bit.ly/1nSA1Zl
    30 July 2014; last revised 18 Oct 2014

    Retail Payments: Amazon / Apple / Braintree / Dwolla / Facebook / GoDaddy / Google / ISIS / PayPal / Square / Stripe / Telcos / Twitter / Whoever Payments—The Reality …

    The choice of payment vehicle, from those offered by the merchant, is driven by the payer who usually directly bears none of the cost of such choice. Sensible people store their funds in a licensed, prudentially regulated, deposit-insured, financial institution; world-wide these institutions issue MasterCard/Visa credit/debit cards to enable those depositors to more readily access their funds. Both MasterCard and Visa have recently launched new “digital wallets” to make online payments easier and more secure and also enable “mobile” payments via NFC at physical POS. And, unlike middlemen “pretenders” like eBay’s clunky PayPal, the retail banks offer an effective and balanced transaction dispute resolution process for their MasterCard/Visa transactions …

    Are MasterCard And Visa In Apple's Crosshairs? …

    My theory, which I stick by today, is that AAPL’s end game is to develop a broad-reaching e-commerce engine that will compete not only with PayPal, but also traditional credit card companies. More recently, some of the pundits that cover AAPL have arrived at similar conclusions.
    —Paul McWilliams, [supposed] “technology stock expert”
    Back in 2012, I wrote that Apple would eventually kill off Visa and MasterCard on thestreet.com.
    —Comment by Forbes Contributor, Richard Saintvilus.
    http://www.forbes.com/sites/schifrin...es-crosshairs/

    Apple, or any future competitor that has already built a base of trust, could begin tomorrow and charge half the commission of eBay, Visa, or MasterCard, … and the concept of real competition [for eBay’s “PreyPal”] in the space is farfetched for the next few years.
    —John Ford, SeekingAlpha.com Contributor
    http://seekingalpha.com/article/2256...ve-entry-point

    The issue both Visa and MasterCard have with their [digital wallet] efforts is that neither one of them has a direct connection to either side of the purchase, … The only thing they [MasterCard/Visa] can do is use their considerable branding muscle to try and change consumer perception of how to buy online. …
    —James Wester, research director of global payments for IDC Financial Insights
    http://www.mobilepaymentstoday.com/a...llet-services/

    What loads of nonsense! And, on the basis of James Wester’s analysis, the retail banks’ MasterCard and Visa credit card payments systems should be failures. He further suggests that online consumers who have for years had to, for each transaction, laboriously enter a card number, card expiry date, card CVV, card name and full postal address, would have a problem coming to terms with a simpler method of having all, and only, the necessary details supplied automatically to the merchant, via MasterCard’s “MasterPass” or Visa’s “Visa Checkout” mobile/digital wallet services, in a manner similar to that which users of eBay’s PayPal have been doing for the past ten years or so. Not only is this an absurd hypothesis, anyone that would place greater trust in the likes of eBay’s PayPal than they would in the licensed, prudentially regulated, deposit-insured, retail banks and their MasterCard/Visa operations, is naïve in the extreme …

    Here’s another one at SeekingAlpha.com …
    http://seekingalpha.com/article/2431...r-end?uprof=46

    PayPal Still Way Ahead Of The Digital Wallet Competition

    According to a survey conducted by Thrive Analytics, PayPal is far ahead of the competition in the increasingly crowded mobile payments market. 79% of the 2,000 U.S. online consumers surveyed in June 2014 stated to have used Paypal in the past, whereas only 40% have used the second most popular service Google Wallet.
    Ref: http://www.statista.com/chart/2534/m...age-in-the-us/

    Of course, the 79% of the 2000 surveyed represents those who have in the past used PayPal for “online” payments, not “mobile” payments. Purchases/payments by “mobile”, as opposed to card payments, are still relatively so insignificant (~1% of total commerce) they are barely worth mentioning.

    Apple's opportunity in payments

    … the Sanford Bernstein team notes that Apple's credit card database makes it very well-positioned to "offer a seamless web and in-app purchase experience." They believe the company could even offer lower fees to commerce companies compared to traditional credit card companies. http://seekingalpha.com/article/2439...said-than-done

    Assuming Apple does come out with NFC on the iPhone 6, it will unlock a wave of merchant point of sale upgrades to terminals that are NFC compatible. Apple will effectively solve the problem of merchants not having any interest in NFC. Merchants will rush to support the large installed base of Apple users and ensure that they can support their own merchant program within the Apple's Passbook for in store use by consumers. http://seekingalpha.com/article/2445...into-overdrive

    “For years, Apple was seen as the ‘elephant in the room’ with respect to mobile and online payments, and the source of speculation around the presumed launch of a consumer payments ‘iWallet,’” Baird analyst Colin Sebastian said in a note. “While there is no shortage of competition in payments, we view Apple as perhaps the most legitimate potential threat to PayPal’s strong position [—particularly with respect to growth opportunities at point of sale.]”
    http://www.marketwatch.com/story/app...oom-2014-09-03
    http://www.businessinsider.com.au/ap...-paypal-2014-9

    More nonsense; the individual merchant-account issuing banks set the discount rate for the individual merchants, not MasterCard/Visa, so how Apple could offer a cheaper discount rate is beyond me; and, merchants will upgrade to EMV/NFC-compatible terminals because of the new, more secure, EMV/NFC cards which are the vehicle for >94% of commerce payments, and because MasterCard/Visa will require them to do so (or the merchant will be accepting the risk of any fraud), not because of any desire to service “mobile” commerce, which presently represents only about one percent of total commerce. And, only the ignorant could possibly think that Apple is of any threat to PayPal’s online operations, and PayPal’s “Pay Here With PayPal” POS mobile operations are negligible, and clunky. Regardless, it is MasterCard’s “MasterPass” and Visa’s “Visa Checkout” that will ultimately put “PreyPal” back into its eBay “pine box”, not Apple …

    In our July article, we warned that eBay would be a major victim of Apple's ambitions in the mobile & online payment business. Following Apple's keynote, we are pretty convinced that the seamless user experience (one touch checkout) offered by Apple Play [sic] (on the iPhone and probably soon on the iPad) will enable the Cupertino firm to gain share at the expense of PayPal in online payments and will shatter PayPal's ambitions in physical transactions. http://seekingalpha.com/article/2485...nning?uprof=46

    Again, it is simply absurd to suggest that “Apple Pay” will have any great affect on PayPal’s online operations; it may however have an affect on PayPal’s off-line “mobile” operations at physical point-of-sale, but those operations are negligible and were never going to be successful for such a clunky middleman anyway, such idea being simply another of eBay’s Johnny Ho’s delusions. And again, regardless, any serious damage that will be done to “PreyPal” will ultimately be done by MasterCard’s “MasterPass” and Visa’s “Visa Checkout”, not Apple …

    Payments are broken, CEO Tim Cook said on stage today, and it's exactly the kind of problem Apple is in the perfect position to fix. "This whole process is based on this little piece of plastic, whether it’s a credit or debit card," Cook said on stage today. "We’re totally reliant on the exposed numbers, and the outdated and vulnerable magnetic interface—which by the way is five decades old—and the security codes which all of us know aren’t so secure." http://www.theverge.com/2014/9/9/608...mobile-payment

    Gee, and this is something that the credit card companies don’t already know? What then is EMV/NFC and the “MasterPass” and “Visa Checkout” mobile Apps all about? Mobile commerce currently comprises ~1% of total retail commerce, which means that ninety-nine percent of consumers aren’t interested in Apple’s “improved security”—most buyers, in the rest of the world, have been using the more secure EMV/NFC cards for up to ten years; best Mr Cook save his vaudeville act for all those merchants in the U.S. who are still using "outdated and vulnerable" swipe terminals, because, until they convert to EMV/NFC terminals, Apple Pay is little more than hot air—dream on Apple fanboys …

    The overwhelming response from industry analysts and executives is that Apple Pay rejuvenates a technology (NFC) many believed was dead and needed a huge shot in the arm. http://www.mobilepaymentstoday.com/a...to-the-market/

    More rubbish! EMV/NFC has been alive and well in the rest of the world for approaching ten years; it is the U.S., particularly its retailers (who apparently do ~33% of the world’s retail commerce but have ~50% of the credit card fraud), that apparently are still living in the payments “stone age”. Ninety-nine percent of consumers are perfectly happy with their new, secure, EMV/NFC cards. Mobile payments therefore is an answer looking for a problem that simply does not exist; even with EMV/NFC well established in the rest of the world, mobile commerce still represents only ~1% of total commerce. Regardless, if anyone is going to invigorate “mobile” payments it will be the no-cost MasterCard “MasterPass” and Visa “Visa Checkout” mobile Apps …

    The new Apple payments system will still rely on the credit card networks run by Visa, MasterCard and American Express and the banks. http://www.smh.com.au/business/retai...10-10eznq.html

    Ah, there it is, in black and white; Apple Pay is just another middleman, riding on the backs of “Visa, MasterCard and American Express and the banks” (and don’t forget the junior bankcard member, “Discover” which nevertheless still processes more transactions than does eBay’s clunky “PreyPal”); and no specific mention of ACH, probably because ACH is not interactive and is therefore not suitable for POS transactions; and, the idea that Apple Pay would support eBay’s “PreyPal” (or any of the other middlemen) is an absurdity; that would be a clunky middleman riding on the back of another middleman riding on the back of …

    Still, it’s nice to see all the hot air generators working at full capacity; but, still no mention anywhere here of the two large “bull elephants” that have recently entered the room, MasterCard’s “MasterPass” and Visa’s “Visa Checkout”!


    Where does it all this nonsense come from? There is so much hot air being generated by contributors and commenters, I wonder if any of these supposed technology / financial / stock-market commentators (and various fanboys) have even the slightest understanding of how the world’s banks’ retail payments system actually works, or how eBay’s clunky “PreyPal” actually works (or, too often for the payee, does not work)?

    The now safer way to pay or be paid online: Payer’s Bank > MasterPass / Visa Checkout > Merchant’s Bank.
    The unsafe way to pay or be paid, anytime: Payer’s Bank > “PreyPal” et al > Credit Card / ACH > Merchant’s Bank (?)

    Online or at physical point-of-sale, via plastic or mobile phone—from the merchant-payee’s point of view—all of the “non-financial institution” payments pretenders (and Amex) suffer the same material handicap that eBay’s clunky PayPal suffers—none have interactive access to buyers’ funds held in retail banking debit accounts nor to retail banking credit accounts (as do have the “bankcards” MasterCard and Visa). The pretenders’ only reliable access to payers’ funds is via a Credit Card Merchant Account with their own retail banker (which is what “PreyPal” claims to be doing when it wants to appear, to the various banking regulators, to be not operating its “pretend bank”).

    The professional retail payments networks—ie, the "bankcards", Discover (~2%), MasterCard (~33%) and Visa (~52%), plus Amex (~12%)—still process ~99% of the world's retail payments between them; the "bankcards" already offer an "instant loan" model—for what otherwise is a "credit" card? (The interest rate on credit card “loans” is high enough; can you imagine what the middlemen will be charging?) And, Amex (even with its “snob” value) will have difficulty growing its market share because it has little chance of ever matching the vast merchant coverage of MasterCard/Visa until it matches the lower merchant discount fees charged by MasterCard/Visa … http://www.bloomberg.com/news/2014-0...eep-trust.html

    Notwithstanding the constant talk of “disruption” from the various commentators, invariably regurgitated from the various “departments of spin”, it appears that nothing has yet disrupted the two major bankcards; and I have no doubt that absolutely nothing in Apple’s “mobile” plans (short of buying their own bank, which still will not give them unfettered, interactive access to depositors’ funds in other banks—except via MasterCard/Visa) will disrupt the two major bankcards.

    The fact is, Apple does not have direct interactive access to depositors’ funds or credit in retail banking accounts of the various banks around the world, nor is Apple, or anyone else, ever likely to get that access—except via MasterCard/Visa; any other way is at the consumers’ peril, particularly so for merchants, as the great many negative stories all over the internet about eBay’s clunky “PreyPal” attest.

    Like all the other payments pretenders, “Apple Payments” will always be riding on the back of the same retail banking networks that it currently does, via a retail banker, as simply one more, albeit very large, "Credit Card Merchant Account" operator. And, any credit that Apple might offer to supply will still have to be provided via an agreement with a licensed and regulated credit provider (ie, a real bank), as is already the case with that infamous other "payments pretender", eBay's clunky "PreyPal" …

    All these “pretenders” are simply parasitic middlemen that ride, in the main, precariously, on the backs of the retail banks’ existing systems; they make their money out of the difference between what the banks/MasterCard/Visa charge them and what they then charge their merchant-payee customers; therefore, their services, invariably, are going to be dearer, or are unlikely to be cheaper, unless they are subsidizing those fees (as probably eBay Inc. is doing with “Pay Here With PayPal” POS installations); and anyone that thinks otherwise has been drinking too liberally of the disingenuous nonsense that habitually flows from the eBay Dept of Spin …

    An Update on the Announcement of Apple Pay

    The fact is, the world’s banks don’t need Apple; Apple needs the banks; “Apple Pay” is just another intermediary, like eBay’s clunky “PreyPal”, riding on the back of the banks’ existing systems. Consumers’ funds are invariably stored in retail banking accounts, not in apples, and the only interactive access to those funds is via a bank-issued device, usually a “bankcard”. Given the suggested current sorry state of EMV, let alone NFC, terminals in the U.S. (~2% of merchants is the suggestion), why any of the U.S. banks or MasterCard/Visa would be so excited about “partnering” with Apple is incomprehensible to me, particularly given that both MasterCard and Visa have recently launched their own digital/mobile wallet application extensions to their card systems (“MasterPass” and “Visa Checkout”) for those smartphone user in the U.S. who are prepared to search for an NFC terminal so that they can use their phone instead of their card. And what is Apple Pay anyway, other than a extension of MasterCard/Visa/Amex by yet another intermediary, Apple?

    Automated Clearing House

    Even if these payments middlemen make use of direct debits via the banks’ Automated Clearing House (ACH) system (as “PreyPal” prefers to do via its banker, the infamous Wells Fargo—if users are silly enough to give “PreyPal” such authority) to more cheaply access payers’ funds, such access is not interactive—there is no immediate acceptance of the debit by the bank, nor any guarantee that, the following day, the bank won’t reverse the debit due to an insufficiency of funds, and that’s why “PreyPal” also wants your credit card on file. What happens if the credit card too is “maxed out”? Well, that’s when an offline, and sometimes an online, merchant may lose his goods and the payment therefor.

    The simple fact is, direct debit via ACH is not a suitable mechanism for physical point-of-sale transaction payments where the goods/services involved are going to immediately walk out the door—nor was the relatively primitive inter-bank ACH system ever intended to be used as a mechanism for non-bank middlemen to access funds for such transactions. The only safe route for merchants for such transactions (credit or debit) is via a retail bank Credit Card Merchant Account with its interactive linking to the retail banking system …

    Liability for Credit Card Fraud

    The October 2015 "deadline" in the U.S. for the transition to EMV/NFC terminals isn't a hard deadline; it's just when the liability for fraud shifts. Right now, if someone uses a credit card fraudulently, and the merchant has followed the basic acceptance rules, then the credit card issuer is liable. After October 2015, if the merchant has a chip-capable terminal, but the credit card itself is a non-chip card, then the credit card issuer is still liable. But, if the credit card company has issued a chipped card, but the customer has to run it using the stripe because the merchant hasn't upgraded to EMV/NFC terminals, then the merchant will be liable for any fraud. Only time will tell is that shift in liability will be sufficient to get U.S. retailers to move themselves out of the payments “stone age” …

    Mobile Commerce—Payments

    Out of all the disingenuous hype, spin, hot air, you can occasionally find a statement about mCommerce that is based in reality … http://www.mobilepaymentstoday.com/b...on-for-the-90/

    I was surprised to read the other day that despite all the hype, still only about 1% of commerce transactions happen in mobile devices according to eMarketer. Even total e-commerce, around from the early days of the Internet, still represents barely 6% of total retail commerce.
    Ref: http://www.emarketer.com/Article/Tot...Growth/1010756

    These numbers are consistent with the numbers published by the National Retail Federation from the U.S. census bureau. eMarketer even projects that by 2018 e-commerce (of which m-commerce is a part) will still represent less than 9% of total commerce. And those numbers are for the US, the birthplace of the Internet, iPhone and Uber. We can only assume the number will be considerably lower on average internationally.
    Ref: http://research.nrffoundation.com/De...6#.U_LFeq0cRzm

    The numbers provide a perspective on how much we still shop "offline" at brick and mortar stores with our feet and our good old plastic cards. For all the hoopla that companies like Uber are generating for connecting mobile users with physical world resources, there is a long, long way to go to enable the physical world for mobile commerce. We need a better connection between the mobile consumer and the retail stores where we perform the other 90 percent plus of commerce transactions.

    —Marcelo Delima, Vice President of Marketing for Sequent Software.

    And what does Amex have to say about “mobile” payments …
    http://www.pymnts.com/news/2014/amex...nts-a-failure/

    On the eve of Apple’s unveiling of its new iPhone-based payment system, a top executive at American Express said that, so far, efforts to get consumers to pay using mobile wallets have failed, according to American Banker.

    “On wallets generally, we have had wallets in the market for quite some time, and there has been fairly limited adoption of those wallets. I think ‘fairly limited’ is generous for many of them,” Josh Silverman, Amex’s president of consumer products and services, said at an industry conference in New York.

    The problem, Silverman added, is that mobile wallets don’t solve a real problem because swiping a payment card isn’t a big imposition. “It’s my opinion that the swipe isn’t especially broken,” he told an audience at the Barclays Global Financial Services Conference.

    Lack of enthusiasm by consumers has resulted in unwillingness by retailers to invest in new terminals to process mobile payments, he said. In addition, various companies in the payments chain, ranging from card issuers, to merchants and terminal vendors, have different ownership structures and different interests. “It’s difficult to get any really powerful new value proposition to market unless you can get most, if not all, of those components of the value chain together,” Silverman said.

    Dream on Apple and “mobile” fanboys …

    The New “MasterPass” and “Visa Checkout” Digital/Mobile Wallets

    “MasterPass” and “Visa Checkout” are simply the logical, and long-overdue, extensions to the existing, robust, retail banks’ MasterCard/Visa credit card systems that allow consumers to even more easily facilitate online payments; they are also available as Apps to facilitate “mobile” payments on NFC-enabled phones …

    People should therefore stop kidding themselves; not Apple nor any of the other "payments pretenders" (including Bitcoin) are ever going to have a noticeable effect on the “bankcards”, MasterCard/Visa, and their new “digital wallet” extensions—other than to make both MasterCard and Visa even better long-term investments ...

    Neiman Marcus department stores have just introduced “Visa Checkout” as a payment option on its e-commerce site … http://www.neimanmarcus.com/en-au/NM...51220734/c.cat

    Oh, dear me, first, after a very brief flirtation as one of eBay’s “preferred”, up-market merchants, Neiman Marcus dumped eBay as a selling partner; and now NM has introduced “Visa Checkout” as a payment option—eBay’s Johnny Ho will not be amused …

    The online checkout experience continues to be a consumer pain point with shopping cart abandonment rates as high as 68 percent, according to research firm, eMarketer. In many cases, consumers have to click through multiple screens, filling out detailed information before completing a purchase. … At the checkout screen, Neiman Marcus consumers can create a [Visa Checkout] account without leaving the retailer’s site … http://mobilemarketingandtechnology....visa-checkout/

    These new, free, robust, on-line services from MasterCard and Visa solve this abandonment problem directly for merchants without them having to incur the invariably higher discount fee that the likes of eBay’s clunky “PreyPal” take.

    And, note also the simplicity of creating a free “Visa Checkout” account! Where it is offered, online shoppers simply select it as the payment option during checkout, and enroll; then members can securely store payment information for cards with the Visa, MasterCard, American Express or Discover logo. Thereafter, upon any checkout, enrolled customers simply enter their Visa Checkout username and password without ever leaving the merchant website. Anyone that buys anything online should avail themselves of an account with both “MasterPass” and “Visa Checkout” …

    Marketing

    It’s irrelevant which of these new “wallets” is being used by an online merchant as both wallets serve the same purpose and both support all the “bankcards” plus Amex, and, I imagine which one the merchant offers will depend on which service is supported by the merchant’s retail banker …

    If there is a criticism to be made it is that MasterCard, in particular, has apparently, incomprehensibly, chosen to not market their new digital/mobile wallet directly to consumers as simply the logical and long-overdue extension of their credit card system, but apparently is leaving it up to the individual banks to, optionally, “brand” these products—as the Commonwealth Bank in Australia has done with “MasterPass” (calling it “CommBank Checkout”!), the marketing of which has been abysmal, and to this CommBank MasterCard-carrier, zero.

    Any individual-bank marketing strategy waters down the value of the MasterCard/Visa brands and undoubtedly will hold back adoption of these more professional products. This is a classic example of a clueless marketing strategy, if ever there was one! Frankly, I doubt even eBay’s cretinous Johnny Ho could possibly be so stupid—although he otherwise does try very hard; though he will be amused by this potentially inept marketing of these otherwise PayPal-crippling products; and, needless to say it is in the interests of all stakeholders that eBay’s clunky “PreyPal” operation be, at the least, driven back into its eBay Marketplaces “pine box” at the earliest possible time.

    I accept that MasterCard and Visa are merely the facilitators of payments and that they get their share of the fee regardless of who “retails” the payment process—even if it’s eBay’s clunky “PreyPal”. Yet, it is the MasterCard and Visa “brands” that have the greatest value in giving consumers confidence in the system. If the various retail banks want to maximize their share of each transaction fee, then it is in their interests, to have MasterPass and Visa Checkout become ubiquitous in the shortest possible time.

    The banks should get on with more aggressively promoting “MasterPass” and “Visa Checkout” generically to their existing MasterCard/Visa merchants that are selling online, and get those online merchants that are using it, to integrate it effectively, and more clearly indicate what it is. They should also be actively promoting to their card-carrying customers, and promoting the accompanying Apps for NFC-enabled phones to simplify “mobile” payments for those (few) consumers who may prefer to “tap” their phone instead of their card.

    Again, the banks/MasterCard/Visa should be doing the marketing for these products generically; the card-issuing banks have a material interest in the greater security that these two wallets provide and the sooner they become ubiquitous for online payments the better for all concerned …

    About Visa

    Visa is a global payments technology company that connects consumers, businesses, financial institutions, and governments in more than 200 countries and territories to fast, secure and reliable electronic payments. We operate one of the world’s most advanced processing networks—VisaNet—that is capable of handling more than 47,000 transaction messages a second, with fraud protection for consumers and assured payment for merchants. Visa is not a bank and does not issue cards, extend credit or set rates and fees for consumers. Visa’s innovations, however, enable its financial institution customers to offer consumers more choices: pay now with debit, ahead of time with prepaid or later with credit products. http://visa.com.my/aboutvisa/mediace...IA_070214.html

    A similar statement can be made about MasterCard …

    eBay’s PayPal, aka “PreyPal”

    Notwithstanding the constant stream of disingenuous nonsense that flows from the eBay Dept of Spin, "mobile" commerce currently represents only about 1% of total commerce, and "online" commerce represent about 6% of total commerce. Of the payments for that online commerce, “PreyPal” processes ~15% of that 6%, that is, equal to ~1% of total payments, and it is estimated that PayPal, in its own right—ie, from funds left (foolishly) by users “on deposit” in PayPal’s “pretend bank”—processes somewhat <1% of total payments …

    PayPal is an important partner of ours. A huge percentage of transactions running through PayPal's wallets are on our products. But we shouldn't have to rely on anyone else, given who we are with the scale and the customer base that we have.
    —Visa CEO Charlie Scharf, talking about “Visa Checkout” http://www.bizjournals.com/sanfranci...isco-apps.html

    Hmmm, to me, that Visa statement sounds ominous for the clunky “PreyPal” …

    Anyway, “PreyPal” is a partner only in the same way that is a cockroach that shares your home with you. Now, as a buyer, I don’t have a problem with “PreyPal”; it is convenient for an online purchase—and it’s virtually mandated for purchases on eBay; but, I read, all over the internet, about a great many sellers—merchants and individuals—that have had most unsatisfactory experiences with the very unprofessional transaction moderation process served up by “PreyPal”. Responsible retail merchants deserve a better service than that supplied by eBay’s clunky “PreyPal” and, for those online merchants that already have a credit card merchant account with their real bank, Mastercard or Visa can now, directly, supply that better online service via their “MasterPass” and “Visa Checkout” services; indeed, it is the merchant-payees that will ultimately dump “PreyPal”, not the payers …

    “PreyPal” is also different from the other payments pretenders in that it, by default, holds onto payees’ receipts; “PreyPal” does not by default automatically remit receipts to sellers’ bank accounts; indeed, “PreyPal” operates a “pretend bank”—the bank they, as only a licensed “money transmitter”, have to unlawfully hold onto merchant-payees’ receipts, and the bank they don’t have when the banking regulator comes sniffing around. That “PreyPal” manages to effectively skirt around U.S. banking regulations while operating this clunky, unlicensed, unregulated, non-deposit-insured, “pretend bank”, frankly, defies belief; possibly it’s due to the same bureaucratic laziness/corruption that allows eBay to knowingly and calculatedly facilitate, massive, blatant, ongoing, auction fraud on the consumers of the world … http://www.ecommercebytes.com/forums...y-Case-Study-5

    You only have to follow the negative comments all over the internet about PayPal to understand the potential problems involved for the banks with such “middleman” operators. Indeed, the suggestion is that “PreyPal” is now applying more, and lengthy, holds on their payee’s funds because “the banks” have put “PreyPal” on notice that they are not happy with the ever-increasing number of complaints from their card users about PayPal’s unsatisfactory customer support and, apparently, virtually non-existent transaction dispute mediation process. Apparently, “PreyPal”—unlike the banks—will not invest in the human resources necessary to professionally moderate such disputes, and will not now defend a charge-back by a buyer—even if it is defensible; for most payees, “PreyPal” will simply deal with the matter in the most cost effective way for “PreyPal”, and that is to acquiesce to the chargeback and let the payee take the loss. The reality is, any online merchant-payee that accepts payments via “PreyPal” does so at their constant peril, eg, http://www.mukaumedia.co.uk/complain-paypal-uk/ (420 negative comments at last count).

    MasterCard fights back against new payments players with increased transaction fees for digital wallets that don’t share data http://www.nfcworld.com/2013/03/20/323195/

    Nevertheless—even as eBay’s marketplace remains stagnant—some naïve stock market analysts suggest that eBay’s clunky “PreyPal” is going to keep eBay Inc. afloat; indeed, some now consider “PreyPal” to be the “jewel in the crown” of eBay Inc.—they are delusional, of course; next time you visit The Home Depot, ask a cashier how PayPal’s “mobile” effort, “Pay Here With PayPal”, is going—LOL!

    Then there is the rumbling sound of the of the professional “MasterPass” and “Visa Checkout” mobile/digital wallets coming down the road—let’s see how eBay’s Johnny Ho copes with that “noise” ringing in his ears …

    Digital wallets undoubtedly are the way of the future for retail payments, particularly for online/mobile payments, and with the recent arrival of the professional mobile/plastic POS/online digital wallets from MasterCard (“MasterPass”) and Visa (“Visa Checkout”), all these other “payments pretenders”—with the exception of where they are mandated and integrated into an online marketplace—are now effectively redundant …

    More “PreyPal” horror stories …

    “When PayPal refuses buyers protection against eBay fraud” http://www.theguardian.com/money/201...?commentpage=1

    92 comments on this one; see if you can find one supportive of “PreyPal” …
    Selling on eBay? Don't accept PayPal if the buyer is collecting in person—as one used-car seller found to his cost …

    “Questions of Cash: I paid by PayPal, but my MacBook never arrived” http://www.independent.co.uk/money/s...d-9658635.html

    All the comments have disappeared from this one; eBay probably “bought” them all …
    Still, of this utterly clunky operator, the never ending story …

    11 Brick & Mortar Stores That ACTUALLY Accept PayPal

    Yeah, but how many transactions are ACTUALLY being done—LOL. Still, this article is well worth a read; some of the commentary is comical (“pre-order your smoothie”; “never actually had anyone try it”). “… after calling about 10 different retailers who received press attention in the past year for accepting PayPal in-store who don’t actually do it … Stores that were rumored to accept PayPal in-store but DO NOT include Babies R Us, Toys R Us, American Eagle, Barnes & Noble, JCPenney, Jos A Bank, Tiger Direct, and Nine West.”—Kyle James

    Well, who knows, maybe they once did accept “PreyPal”—but, wisely, not any more …

    PayPal Introduces One-Touch Mobile Payments …

    Now all you have to do is find one of the few B&M retailers that accept PayPal at physical POS in the first place. Regardless, the new MasterCard “MasterPass” and “Visa Checkout” mobile wallet Apps for NFC-enabled phones don’t require even a one-touch, just a tap; and, the aggregated funds transferred go into the merchant’s bank account the following morning, not into “PreyPal” limbo.

    Mobile Commerce—POS Receipts

    Amazon too has now introduced a mPOS credit card reader—albeit not EMV—and is offering early adopters an introductory discount fee of 1.75% until the end of 2015. Amazon can do this because they are themselves operating a very large "credit card merchant account" with their retail banker and they are probably paying only a ~0.5% fee, which is probably considerably less than Square would be paying its banker, and on that basis the Square card reader may well be doomed, at least in the US where, apparently, swiping a card will still be permitted. Square probably should try to sell itself to Visa, who already has an interest in Square. But, better still, the clunky "PreyPal" may well be forced to reduce its “PayPal Here” discount fee too to fend off the Amazon competition—eBay's Johnny Ho will not be amused ...

    But, Back to Apple …

    … with the company being privy to payment card details of hundreds of millions of iTunes users http://www.mobilepaymentstoday.com/a...card-networks/

    With the advent of EMV/NFC cards and the professional digital/mobile wallets from both MasterCard (“MasterPass”) and Visa (“Visa Checkout”), I suspect that it is only a matter of time before such “payment card details” (ie, the card numbers) will not be operational for making payments (or will come with a somewhat higher discount fee, as is currently the case usually with “card not present” transactions), for it is the possible fraudulent use of these operational card details alone that is the real, and costly, ongoing weakness of the card system. From a security point of view, I see such card details eventually becoming nominal only and the likes of the “MasterPass” and “Visa Checkout” digital wallets (accessed via mobile or card, or online) becoming the dominant vehicle for all retail payments—on- and off-line—with much improved efficacy and security for all stakeholders …

    Finger print reading and NFC capability will only make a smart phone a little smarter, and maybe Apple will get “card present” rates. However, a “payments system” it does not make; but, an NFC chip would facilitate the use of the new, professional “MasterPass” and “Visa Checkout” digital wallet Apps thereon. Regardless, I doubt the financial institutions would ever subcontract the security of their customers’ deposited funds to Apple, or anyone else—“touch ID” or no. Precisely for the increased security offered, the financial institutions have agreed to the adoption of EMV/NFC cards and the new MasterCard/Visa online digital wallets. Apple iPhone users will be able to load the “MasterPass” or “Visa Checkout” Apps onto their EMV/NFC-enabled phones; but will the banks accept Apple’s “Touch ID” in place of their own secure logins? Unlikely, methinks …

    EMV/NFC cards have been on issue in Australia for the past ten years, and other smart phones also have had the same capability for years; it’s about time Apple and its fanboys caught up. Regardless, there are now no long term “spoils” in retail payments for Apple or any of the other middlemen payments pretenders—only for those that otherwise keep safe our stored funds—the licensed, prudentially regulated, deposit-insured, retail banks …

    What then about Bitcoins?

    I never could understand why anyone would choose to complicate any retail transaction by paying with Bitcoins, et al, which are effectively a volatile “foreign” currency with a ~2% FX conversion fee (~1% buy/sell at each end)—even for a local transaction—and has no transaction dispute resolution process. And where are your Bitcoin “funds” stored? In a licensed, prudentially regulated, deposit-insured facility? I think not! Regardless, the 2% Bitcoin buy/sell fee would be much greater than the (possibly ~0.5%) fee that major retailers may be paying for MasterCard/Visa transactions—Dream on Bitcoin fanboys.

    US judge calls Bitcoin company 'Ponzi scheme' and levies $40m fine
    http://www.theguardian.com/technolog...me-judge-order
    http://consumerist.com/2014/09/19/ju...llion-penalty/

    A US federal judge in Texas ordered Bitcoin Savings and Trust and its owner to pay a combined $40.7m after the Securities and Exchange Commission established that the company, which sold investments using the virtual currency, was a Ponzi scheme. In a decision dated Thursday, US magistrate Judge Amos Mazzant said Trendon Shavers “knowingly and intentionally” operated his company “as a sham and a Ponzi scheme”, misleading investors about the use of their bitcoin, how he would generate promised returns and the safety of their investments. …

    Credit Card System Anachronisms

    Yes, there are presently some anachronistic features of the credit card system—the legacy operational card details imprinted on the card and recorded on the card’s primitive mag strip are serious, fraud enabling, anachronisms, but, I would expect that those anachronisms will be phased out following the implementation of the approaching industry-mandated EMV Chip+PIN regime and the availability of the online/mobile “MasterPass” and “Visa Checkout” services, and card numbers will probably no longer have any operational, or fraudulent, use—on- or off-line …

    There is no reason other than legacy that I have to surrender my id or my credentials to the merchant and ask the merchant to drive the payment.—Commenter, MaxBaxter http://www.mobilepaymentstoday.com/a...nts-applecart/
    [An interesting exchange here between commenters that again demonstrates that contributors don’t necessarily have an in-depth understanding of just how retail payments actually work.]

    Indeed, for online transactions, there is now no reason for you to give your details to the merchant to drive the payment; that is precisely what the new digital wallets from both MasterCard (“MasterPass”) and Visa (“Visa Checkout”) are designed to avoid. On- or off-line, the merchant gets none but the information he absolutely needs; there can be no subsequent mismanagement of the credit card data that, in the wrong hands, facilitates so much of the actual and attempted fraud on the system—in short, everybody wins! Who knows, the banks—that carry the primary risk of such fraud—may even lower their discount fees if the risk to them is thereby greatly minimized—just don’t hold your breath waiting. …

    In Conclusion

    Finally, how can so many so-called stock market and/or industry analysts continue to discuss retail payments without mentioning the two elephants that have recently entered the room—the new, professional, infinitely more secure and smoother working “digital wallet” extensions of the credit/debit card system from MasterCard (“MasterPass”) and Visa (“Visa Checkout”)?—which, I have no doubt, will ultimately drive eBay’s clunky "PreyPal" back into its eBay marketplace “pine box”. …

    I am not a payments-industry insider, simply an interested, and amused, spectator, and so I invite anyone with industry knowledge to correct me where my presumptions may be wrong; but please, no delusional Apple fanboys or disingenuous “PreyPal” shills … email direct formset@exemail.com.au

    And a Few Words about PayPal’s Ugly Adoptive Mother, eBay Inc. …

    Notwithstanding that the eBay Dept of Spin has previously claimed a “400% increase” in eBay’s stock price from its ~$10 low during the 2008–2012 global recession, the fact is, in August 2007, immediately prior to the beginning of the GFC, when the "Pain From Bain", John Joseph Donahoe II (aka Johnny Ho)—now into the eighth year of his planned “three-year turnaround” of eBay—was already effectively in control of eBay, the share prices of eBay and Amazon were both ~$40. With eBay recently less than $50 and Amazon greater than $300, clearly, the “smart money” on Wall Street recognises eBay Inc. to be a "dog", and Johnny Ho to be a very poor dog handler. The fact is, relatively speaking, eBay’s “long” stockholders have been going backwards ever since the arrogant, cretinous, narcissistic, sociopathic Johnny Ho took the helm, and not even a penny in cash dividend in compensation for them; Johnny Ho and his gang of fellow stooges are the only ones that have taken any cash out of eBay in the form of performance bonus shares—if only there had been any performance …

    Had Pierre Omidyar in August 2007—before he allowed the control of eBay to pass to the delusional Johnny Ho—traded in just the ~108 million eBay shares that he still holds today for shares in Amazon, instead of his current ~$6 billion, his worth would now have been ~$32 billion! Now that, surely, is something for all of eBay's long-suffering shareholders, and its shills, to think about, is it not? ...

    You need any more proof of Johnny Ho’s capacity for destruction? Well, you could start by following any article about eBay or PayPal on the internet that not only has a comments facility but actually allows un-moderated reader comments; for example, the http://www.theguardian.com or http://www.telegraph.co.uk/ websites—always a great many reader comments, now almost invariably ~100% negative …

    Need still more? What about from the mouth of the cretin himself? See if you have the stamina to peruse the whole of the transcript of his September 2007, Legg Mason “Thought Leader Forum” presentation. Ten prizes of “A Mentoring Day With John” are on offer for each of the first ten readers that can find the stamina to actually complete this grueling task, without their heads exploding—LOL. … http://bit.ly/16McqO1

    You need even more, still? Try perusing eBay’s Q3 2014 Results–Earnings Call Transcript (15 Oct 2014) at
    http://seekingalpha.com/article/2565...pt?part=single
    For those of you that find they don’t have the stomach for the whole transcript, Ina Steiner has filtered out therefrom a bunch of utterly inane statements by Johnny Ho at
    http://www.ecommercebytes.com/C/blog...414010502.html
    Carl Icahn has got at least one thing right about eBay, Johnny Ho is a fool …

    And what then about ex-PayPal chief, David Marcus? Don’t kid yourself, if he was not fired, he left eBay/PayPal because he could read the writing on the wall, and I don’t mean the sign in the eBay Trust & Safety [sic] department that says “No Touchy Jackie Sheng” …

    The ugly reality of eBay Inc.:
    eBay’s ongoing, calculated, facilitation of fraud on its auctions marketplace ... http://bit.ly/11F2eas
    eBay Motors (UK sampling): Auction Fraud Galore ... http://bit.ly/I2gTEU
    eBay Cross-Site Scripting (XSS) Redirect Phishing Scams ... http://wp.me/p4zfF4-2tw
    eBay XSS infected listings still on the site ... http://tamebay.com/2014/09/ebay-xss-...-the-site.html
    eBay under pressure as hacks continue ... http://www.bbc.com/news/technology-29310042
    Barclays Bank–eBay/Gumtree Motors Scams … http://bit.ly/1c9Uwck
    Retail Payments (and PayPal)—The Reality ... http://bit.ly/1nSA1Zl
    More on eBay's clunky "PreyPal" operation ... http://bit.ly/UVXx53
    The ongoing joke of eBay Inc. ... http://bit.ly/YvxFEg
    A summary of quotes from the eBay executive suite ... http://bit.ly/12xvzyA
    Johnny Ho’s “Thought Leader Forum” transcript … http://bit.ly/16McqO1
    Johnny Ho: An obituary ... http://www.ecommercebytes.com/C/abbl...412082049.html

    The difference between eBay and the Mafia is that most eBay employees are unaware that they are working for a demonstrably criminal organisation … http://bit.ly/11F2eas

    The eBay executive suite—where the incompetent mingle with the disingenuous, the malevolent and the outright criminal, and the just plain stupid ... http://bit.ly/11F2eas
    Last edited by PhilipCohen; Today at 01:54 PM.

    “Today we’re dealing with phase two or phase three [he can’t remember which one] of disruptive innovation. We’ve had the disruption, now we’re having to disrupt the disruption. ... Based on our experience, here’s how innovation at the core worked. We had to create a mind shift at our company—we had to think bold and not just incremental. We had to create a vision of the future so people could let go of a very successful past.”—John Donahoe, Legg Mason "Thought Leader Forum" (26 Sept 2007)—The whole interview transcript at http://bit.ly/16McqO1. Ten prizes of a "Mentoring Day With John" for anyone that can read the whole of it—without their head exploding ...

    "Our ambition is to be the strategic partner of choice for every leading retailer, brand and manufacturer across the world ..."—eBay Employment Ad (2013)—Dream on Johnny Ho, Ho, Ho ...

    Some other fun quotes from the eBay executive suite ... http://bit.ly/12xvzyA

    “The difference between genius and stupidity is that genius has its limits.”—Anon.

    Note: All the statements made by me and contained herein are my opinion only; readers must form their own opinions from the facts presented.

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    eBay/PayPal Media Release—Draft—Confidential …

    “It is with great sadness that eBay’s chief headless turkey, Johnny Ho, announces the anticipated incapacitation of eBay’s most ugly adopted daughter, PayPal. Undoubtedly, ‘PreyPal’ is about to be adversely affected, severely, by the new, particularly virulent, strains of professional digital wallet: MasterCard’s ‘MasterPass’ and Visa’s ‘Visa Checkout’; that, in addition to the financial institutions’ displeasure due to ‘PreyPal’ transactions resulting in far too many credit card charge-backs, and also much ‘PreyPal’ merchant-payee dissatisfaction regarding PayPal’s unprofessional transaction dispute mediation process (or total lack thereof) and arbitrary and unlawful holds (in contravention of their licence as only a money transmitter) on payees’ funds, and latterly, 180-day “buyer protection” in the U.K. …

    “‘PreyPal’ may therefore be expected to soon begin to deteriorate in health and, if ultimately not completely incapacitated, will most likely be eventually confined to its effectively mandated servicing of what little there will be left, by then, of the Johnny Ho-devastated eBay marketplace, and to being the merchant account provider of last resort for those small online sellers that do not have the confidence of their own retail banker.

    “There is no cure this condition, and Johnny Ho is particularly saddened by the inevitability that, in the not too far distant future, ‘PreyPal’ will be unable to continue to underpin the eBay marketplace’s atrophying sales and stagnating revenues (albeit counterbalanced by ever increasing, percentage wise, fees).” … http://bit.ly/UVXx53

    The eBay executive suite—where the incompetent mingle with the disingenuous, the malevolent and the outright criminal, and the just plain stupid ... http://bit.ly/11F2eas
    Last edited by PhilipCohen; 09-06-2014 at 11:01 AM.

    “Today we’re dealing with phase two or phase three [he can’t remember which one] of disruptive innovation. We’ve had the disruption, now we’re having to disrupt the disruption. ... Based on our experience, here’s how innovation at the core worked. We had to create a mind shift at our company—we had to think bold and not just incremental. We had to create a vision of the future so people could let go of a very successful past.”—John Donahoe, Legg Mason "Thought Leader Forum" (26 Sept 2007)—The whole interview transcript at http://bit.ly/16McqO1. Ten prizes of a "Mentoring Day With John" for anyone that can read the whole of it—without their head exploding ...

    "Our ambition is to be the strategic partner of choice for every leading retailer, brand and manufacturer across the world ..."—eBay Employment Ad (2013)—Dream on Johnny Ho, Ho, Ho ...

    Some other fun quotes from the eBay executive suite ... http://bit.ly/12xvzyA

    “The difference between genius and stupidity is that genius has its limits.”—Anon.

    Note: All the statements made by me and contained herein are my opinion only; readers must form their own opinions from the facts presented.

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    Citibank Introduces “MasterPass” Digital Wallet
    http://online.wsj.com/article/PR-CO-...25-907574.html
    https://online.citibank.com/US/JRS/p...?ID=CitiWallet

    Citi cardmembers now have a quicker and simpler way to make online purchases with the new Citi Wallet. Citi is the first global bank to introduce its own branded digital wallet in the U.S. Citi Wallet makes checkout easy with just a few clicks. By enrolling in Citi Wallet, Citi cardmembers no longer have to enter their credit card, billing and shipping information when making purchases at thousands of merchants. … look for the MasterPass logo when shopping online.

    Well done Citibank, but, again, the marketing of these MasterCard/Visa products by the individual banks is simply absurd. The fact is, this particular Citibank wallet is a MasterCard wallet and any of the cards from Amex, Discover, MasterCard or Visa can be loaded onto it or the competing Visa wallet …
    Last edited by PhilipCohen; 09-15-2014 at 06:49 PM.

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    MarketLive Integrates Visa Checkout
    http://www.sys-con.com/node/3162929

    PETALUMA, CA -- (Marketwired) -- 08/27/14 -- MarketLive, the leading Total Commerce platform for high-growth merchants today announced they are integrating Visa Checkout directly into MarketLive's eCommerce platform.

    Visa Checkout is a new and easy way to pay online, on any device, with just a few clicks. Whether making purchases from a desktop, mobile device or from within a mobile app, shoppers simply insert a username and password to complete the payment process. Integrating Visa Checkout into MarketLive's eCommerce platform allows MarketLive's retail customers to offer the service to a growing number of consumers who are shopping via smartphones and tablets.

    "We are the first enterprise eCommerce platform to do a full integration of Visa's mobile-optimized Visa Checkout, which sets us apart from other technologies and makes it easier for our merchants to simplify the payment process for their customers," said Ken Burke, founder and CEO of MarketLive, Inc. "We can offer customers the trusted Visa brand as one of their checkout options, and help decrease cart abandonments -- especially on mobile devices."

    Goodbye clunky “PreyPal”—It has not been nice knowing you …
    Last edited by PhilipCohen; 09-15-2014 at 06:50 PM.

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    28 August 2014
    Newly Launched PayPal Alternative Visa Checkout Adds Nearly A Dozen More Partners
    http://techcrunch.com/2014/08/28/new...more-partners/

    The new partners include Bank of America Merchant Services, First Data, TSYS, Vantiv, and Wells Fargo Merchant Services, and e-commerce platform providers including CyberSource, MarketLive, and 3DCart. These partners have now signed agreements with Visa stating they will offer Visa Checkout to their own customers. In addition, the company notes that others, including BrandingBrand, Moovweb, and Skava, are already live with the service. …

    “Customers don’t want a wallet,” Sam Shrauger, Visa’s SVP of Digital Solutions, said last month. “They want to be able to pay and be done with the experience.”

    Of course, Visa is a delicate position with the likes of Checkout, not wanting to alienate PayPal, an important partner in terms of online transactions, many of which come through Visa payments. But the company wants to also offer its own solution.

    At launch, Visa Checkout announced partnerships with a number of large online retailers, including Neiman Marcus, Pizza Hut, Staples, and United Airlines in the United States, Canada and Australia, who are adding the payment option to their e-commerce websites. But Visa never really had a problem getting sign-ups from merchants or partners before – after all, as V.me, Visa scored deals with dozens of U.S. banks, Overstock.com, 1-800-FLOWERS, LivingSocial, Newegg, and others.

    Note particularly the new partner, Wells Fargo Merchant Services; Wells Fargo is PayPal’s banker through which “PreyPal” operates its credit card merchant account. And why would Visa bother if it was alienating PayPal, PayPal is the customer of Wells Fargo Bank, not Visa, and Visa collects its transaction fee regardless of who “retails” the payment.

    The only problem for these new “bankcard” wallets is to get the conservative banks to market them more aggressively to their card-carrying customers; in the meantime eBay’s cretinous Johnny Ho will continue smirking …

    Goodbye clunky “PreyPal”—It has not been nice knowing you …
    Last edited by PhilipCohen; 10-11-2014 at 02:01 PM.

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    PayPal Spinoff …

    “Ebay has been telling potential recruits for the position of PayPal CEO that it’s considering spinning off the payments business as soon as next year, according to two people briefed on the conversations.”—theinformation.com
    https://www.theinformation.com/PayPa...-Still-in-Play

    The idea that eBay may spin off PayPal is fanciful …

    If eBay did spin off PayPal, and retained no major financial interest in PayPal, then there would be no financial incentive for eBay to offer (nor indeed virtually mandate) the use of PayPal on its marketplace. eBay could simply re-create its own marketplace payments system via a credit card merchant account as Amazon has done for its buyers and sellers.

    The clunky PayPal without its virtually mandated place on the eBay marketplace would then be effectively “dead in the water” as either MasterCard’s “MasterPass” or Visa’s “Visa Checkout” will now provide a more professional online payments service for those merchants that have the confidence of their banker.

    Sorry, but eBay is never going to let go of PayPal because without PayPal eBay Inc. will simply continue to atrophy under Johnny Ho’s direction; if the two are ever divorced, they both will eventually go submarine. Regardless, the new MasterCard and Visa online/mobile products will eventually drive the clunky “PreyPal” back into its eBay marketplace “pine box”—it’s only a matter of time …
    Last edited by PhilipCohen; 09-15-2014 at 06:52 PM.

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    How Square Cash app moves cash
    http://jonbwhite.tumblr.com/post/668...are-moves-cash

    Square credits a debit card rather than a bank account

    If the funds being credited ultimately finish up in the payee’s bank account, what's the difference between Square facilitating this transfer as a credit card merchant via a debit card or as a direct credit to the linked bank account via ACH? Little that I can see.

    And what if the sender doesn’t have a debit card but uses only a credit card to also make debit purchases?

    Then, how does Square access the funds to be sent? It can’t be by debit card, because Square does not have the necessary PIN, or if it’s the likes of a DEBIT MasterCard then discount fees are incurred. So, we are back to direct debit via ACH as the source, and ACH debits are not "interactive" and may be reversed the following day by the payer’s bank if there is an insufficiency of funds ...

    Square is not a licensed financial institution; they operate their bank-to-bank transactions—like eBay’s “PreyPal”—via a “merchant account” with a licensed retail bank. Indeed, the only way for such middlemen to source funds from any real bank is via ACH, or via a credit card transaction which incurs higher fees.

    So, when sending funds, there appears to be effectively little difference between a bank account number and a debit card number—the funds still go into the bank account—except that in the case of the debit card route you are involving a middleman (Square, or some other “merchant”) to facilitate the process, and, surely, there must be a benefit to Square somewhere along the way for supplying this service.

    My experience with internet banking is that transactions between accounts at the same bank are instantaneous; if they are between different banks, presumably due to an aggregating process, the accounting occurs the following week-day. Of course, it may well take a little more work to transfer funds via your internet banking app because banks usually include a security step before facilitating a transfer to a new account …

    Am I otherwise missing something here?
    Last edited by PhilipCohen; 09-15-2014 at 06:52 PM.

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    Apple’s iPhone 6 with NFC. Is it a Game Changer?
    http://www.finextra.com/blogs/fullblog.aspx?blogid=9850

    It appears that Apple is not only planning to bypass the mobile network operators (MNOs), but also the banks. Reports suggest that Apple will offer a payment solution with card images held in an Apple wallet. The Apple wallet will use the embedded secure element (eSE) along with the user’s payment instrument that is already linked to iTunes. If this is true, then Apple has a unique solution that does not require them to partner with either issuers or MNOs. That would mean no bank wallet, no relationship with issuers and no tie up with the telcos.

    No need for the “issuers”? And what then is the “user’s payment instrument that is already linked to iTunes”? It’s a credit card number linked to a bank credit account, unless the consumer has been silly enough to give Apple direct debit (ACH) access to their bank debit account. In any case, users’ funds invariably have to be sourced from a retail banking account, so this statement seems fanciful to me.

    But, there is some logical commentary …

    … no more doubt that (at least for now) NFC is the communication method of choice at the point of sale (PoS) and, perhaps most importantly for Apple’s primary market in the USA, it’s a strong endorsement for the ubiquity of EMV.

    And, guess what, EMV/NFC is the technology that has already been adopted by those “issuers” …
    Last edited by PhilipCohen; 09-15-2014 at 06:54 PM.

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    Will Apple Touch ID-enabled mobile payments reduce interchange rates?
    http://www.mobilepaymentstoday.com/a...rchange-rates/

    … what Apple also did with the Touch ID SDK is unintentionally start a conversation about how the card networks should consider a cheaper interchange rate for Touch ID-authenticated mobile payments. …

    "It's hard for the wallet provider to go to Visa and MasterCard and try to get the same rates as a swiped transaction because inherently you could fake a keyed in transaction much easier than you can track data [on the physical payment card]," Malko told Mobile Payments Today in an interview not long after Apple opened Touch ID to app developers. "With Touch ID, which is more robustly secure, these mobile wallet providers are going to go to Visa and MasterCard and fight to be considered as a card-present transaction."…

    While Visa and MasterCard set the interchange rates, the banks who issue payment cards are the ones who benefit from those fees. …

    While Visa and MasterCard are trying to reduce consumers' heartburn at the mobile checkout with their respective digital wallets, Touch ID presents a simple interface that's as easy as pressing a button without having to remember login information.

    The same level of improved security is now available with the new EMV/NFC digital/mobile wallet apps from MasterCard (“MasterPass”) and Visa (“Visa Checkout”). Regardless, it’s not the card networks but the individual merchant-account issuing banks that by negotiation set the discount rates for individual merchants (the MasterCard and Visa interchange portion of the fee, in the US, is only ~22c per transaction). If a merchant is offering the more secure MasterPass or Visa Checkout for online purchases, then they may well be able to negotiate a lower discount rate with their bank. At POS, with an EMV/NFC credit card or mobile, most times you don’t even have to “press a button” for purchases <$100—no PIN required! …
    Last edited by PhilipCohen; 09-15-2014 at 06:55 PM.

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    How do I advertise PayPal Credit on my website?
    https://www.paypal.com/us/webapps/he...LLERS_HC&m=TCI

    PayPal offers free banner ads that you can place on your website, in emails, and on your eBay store. These banner ads tell your customers that they can get 6 months financing on purchases of $99 or more through PayPal Credit.* And even though your customers get more time to pay, you get paid up front. The ads are free to use, so you don’t pay anything beyond what you’re already paying for PayPal payment processing. To take advantage of the 6 months financing offer, your customers simply select PayPal Credit as their funding method during checkout. …

    *Applicable for qualifying purchases of $99 or more if paid in full within 6 months. Customers check out with PayPal and use PayPal Credit. PayPal Credit is subject to consumer credit approval, as determined by the lender, Comenity Capital Bank.

    Ah, PayPal Credit, probably the most expensive loan a consumer will ever take out because, once again, “PreyPal” is only a middleman. And how does this unlicensed credit provider provide this credit? They supposedly “arrange” it through a tinhorn licensed bank, Comenity Capital Bank. PayPal then buys the debt from Comenity and thereafter manages it themselves. Banking and credit providing laws mean nothing to the likes of “PreyPal”, they are simply minor obstacles to be worked around …
    Last edited by PhilipCohen; 09-15-2014 at 06:55 PM.

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