When will paywave be mandatory ??

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Forums › Finance and wealth management › When will paywave be mandatory ??

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Ultimate Geek

#1232655 7-Feb-2015 18:38

I'd imagine the fact that PayWave uses the Visa/MasterCard network is the reason that Countdown don't allow debit/EFTPOS cards to use PayWave. Why suffer a 2% (for example) loss on transactions, when you can easily disable to feature on debit cards and force them to use the EFTPOS feature which is essentially free for them.

The day PayWave becomes free/much cheaper is the day that many more stores get on board, especially placed like dairies, bakeries and other small stores.

-A.

sbiddle

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#1232657 7-Feb-2015 18:50

sdavisnz: Ok,

so there is no definite timeframe on a requirement.

im just going to boycott any retailer that has a contactless ready terminal that chooses to not activate the contactless feature.

What's really annoying is the terminals out there (one of the DPS ones from memory) that has the Paywave/Paypass logos on the top of the LCD screen but I've yet to encounter a single one of these terminals that actually has the functionality enabled. My local 4square even has a p-touch label on the terminal saying "NO PAYPASS" to try and cover it up, so presumably this can't be removed if the retailer decides not to enable it.

As for terminal support going back a few years ago a date of late 2014 was set for all major retail chains to have capable terminals, and credit card companies were pushing for NFC to be mandatory on all terminals. I'm not aware of any actual date where NFC support is required.

sbiddle

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#1232658 7-Feb-2015 18:51

AidanS: The day PayWave becomes free/much cheaper is the day that many more stores get on board, especially placed like dairies, bakeries and other small stores.

-A.

You can thank our Commerce Commission the ACCC for the current rates structure of credit card transactions. The legal action taken in both countries has basically achieved the opposite outcome that they aimed for.

MikeB4

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#1232659 7-Feb-2015 19:19

Its one of those things that I really don't care about, if its available I will use it, if not don't care.

dafman

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#1232666 7-Feb-2015 19:28

It's really difficult, putting in a 4 digit pin. Hell, it takes at up to at least 10 seconds, time I don't have... I have to spend... spend... spend (-;

coffeebaron

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#1232677 7-Feb-2015 19:41

sdavisnz:
coffeebaron: Once they have a Bank Debit card compatible option, then I think it will take off more. At the moment it is only credit card transactions, so attracts applicable fees.

I have a paywave feature on my anz visa debit and no credit account accossiated to the card.

Treated as a credit card.

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Gozer

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#1232678 7-Feb-2015 19:44

It will never be mandatory in policy its as simple as that.

You will get to a point where all new terminals are shipped with it but as with now it will be up to the retailer to decide if they want to enable it.
This is the way the system works and it is unlikely to change.

What they do instead is shift liability and or charge more money. For example retailers are charged for "card not present" transactions. And you can still sign for things but there is much more liability if there is a dispute with the transaction.

What they plan to do in the US apparently, is to make whomever has the lesser technology responsible if there is a dispute, so if some steals your card that has Apple pay and they take it to a retailer who insists they sign because they don't like technology, then the retailer would be the one to refund the fraud.
But to counter act this they now have some of the massive retailers with competing payment schemes lobbying and winning in court to insist that ID must be shown and recorded when using Apple pay because its so "new and unsafe".

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Lurch

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#1232679 7-Feb-2015 19:56

coffeebaron: Once they have a Bank Debit card compatible option, then I think it will take off more. At the moment it is only credit card transactions, so attracts applicable fees.

Strange, I use my Debit cards from Kiwibank and ANZ all the time with Paywave.

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#1232684 7-Feb-2015 20:14

Lurch:
coffeebaron: Once they have a Bank Debit card compatible option, then I think it will take off more. At the moment it is only credit card transactions, so attracts applicable fees.

Strange, I use my Debit cards from Kiwibank and ANZ all the time with Paywave.

Debit cards can be used at Paywave/Paypass terminals at many outlets, however such transactions are processed as credit card transactions and incur additional merchant fees from some merchants, hence some retailers blocking these from being used as a contactless transaction and requiring a regular chip based EMV transaction.

khull

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#1232702 7-Feb-2015 20:39

roobarb:
khull: For me, if the place takes cash/eftpos only, I'd think twice before I walk in.

Which is not a good way to support your local high-street small shop that is already being squeezed by the big-box stores.

Was in AU for a work trip and went to a local cafe for a morning cuppa on the way - cash only; right in the middle of the CBD. I had to fumble with oversized coins and realised I was short. Handed a note and got more coins in return.

Next day I went straight into Starbucks with contactless in retaliation

sdavisnz

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#1232705 7-Feb-2015 20:45

While we're talking about it....

Would love to be able to use Apple pay in nz.....

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richms

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#1232706 7-Feb-2015 20:46

Before they worry about paypass being everywhere, I want all the terminals where you have to hand your card over gone. I intentionally hand over my worn out swipe card that needs to be swiped backwards thry some terminals to read to places that insist on not using a terminal with the card going in on the customer half of the machine.

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sdavisnz

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#1232708 7-Feb-2015 20:48

richms: Before they worry about paypass being everywhere, I want all the terminals where you have to hand your card over gone. I intentionally hand over my worn out swipe card that needs to be swiped backwards thry some terminals to read to places that insist on not using a terminal with the card going in on the customer half of the machine.

Agree - in 2015 a retailer should not have the right to hold my debit card in their hands..

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sbiddle

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#1232715 7-Feb-2015 21:07

khull:
roobarb:
khull: For me, if the place takes cash/eftpos only, I'd think twice before I walk in.

Which is not a good way to support your local high-street small shop that is already being squeezed by the big-box stores.

Was in AU for a work trip and went to a local cafe for a morning cuppa on the way - cash only; right in the middle of the CBD. I had to fumble with oversized coins and realised I was short. Handed a note and got more coins in return.

Next day I went straight into Starbucks with contactless in retaliation

Australia is a cash society - if you visit there you have to accept that.

If you want to use EFTPOS or a credit card you just have to abide by their minimum purchase limits due to their merchant fees.

KiwiSurfer

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#1232719 7-Feb-2015 21:24

I prefer not to use Paywave and use my old magnetic strip EFTPOS card not because I don't like the technology, in fact I think contactless payments is a *great* idea, but because it's been badly implemented in NZ (and probably elsewhere too).

I dislike that all transactions has to be processed via Visa/Mastercard even if it could be processed locally. 2% may not sound like much until you think someone spending $20,000 a year on good and services in NZ will see $400 a year going off-shore to Visa/Mastercard just for merchant's access fees to their network.

If that still doesn't sound like much, assume there are 2million working adults in NZ spending an average of $20,000 a year... Thats a potentinal total of $800,000,000 a year going to Visa/Mastercard if everyone decided to use Paywave for their daily shopping.

I can't see the point in that much money going off NZ shores to fund Visa/Mastercard's payment infrasturcture when we already have a perfectly good EFTPOS system here in NZ that will cost us (both consumers and merchants alike) far less.

I would be disappointed if all mercants were required to accept only NFC payments and I would probably switch to cash in protest if this was the case. I don't think this will happen for some time yet though.

If banks ever release a NFC card that has transactions routed via the local EFTPOS system I'll be first in line. Until then I'm sticking with my old strip card. Even the chip card would be fine when my bank eventually transitions to those.

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