Low Paywave uptake in New Zealand

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Forums › Finance and wealth management › Low Paywave uptake in New Zealand

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#2205221 26-Mar-2019 18:33

Banks are disgusting....they take a 2% cut from merchants who work hard and risk so much. Banks assume no risk.

Billions moves through our credit card systems and banks take the attitude of taking just a bit off everyone is OK. But, the cumulative 'bit' is an absolutely ludicrous amount of money that is disproportionate to the investment in systems.

PolicyGuy

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#2205233 26-Mar-2019 18:42

Lias:

I don't care what it costs stores, it saves me time, makes my life easier and it's 2019 so if they don't give me what I want, I just don't go back.

This is what the credit card companies are relying on, that enough people will bypass no-Paywave shops that the commercial pressure on those shops becomes unbearable.

Life's good when you have a cosy duopoly

I'd be interested to see the ComCom have a look at the credit card industry. On the surface it's worse than the petrol industry: only two players (Diners & Amex really don't count), and in an environment of the lowest interest rates in a lifetime, the standard CC rate is immovably stuck at around 20%

rugrat

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#2205235 26-Mar-2019 18:44

coffeebaron:
As has been said many times. PayWave is not hiking up the price of fees. PayWave (or the other contactless payments) are all Credit Card based transactions, so attract the usual merchant fees. The current EFTPOS system does not have these same fees, but currently is not contactless capable. A long overdue upgrade of the EFTPOS system is needed to allow Contactless EFTPOS payments.

Places that take credit cards tell me that it costs them more for payWave then a chip credit card payment. So above doesn’t seem to add up.

lucky015

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#2205237 26-Mar-2019 18:46

surfisup1000:

Banks are disgusting....they take a 2% cut from merchants who work hard and risk so much. Banks assume no risk.

Billions moves through our credit card systems and banks take the attitude of taking just a bit off everyone is OK. But, the cumulative 'bit' is an absolutely ludicrous amount of money that is disproportionate to the investment in systems.

Isn't most of this mostly just on-charging the rates from Visa, Mastercard, etc?

surfisup1000

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#2205239 26-Mar-2019 18:49

lucky015:

surfisup1000:

Banks are disgusting....they take a 2% cut from merchants who work hard and risk so much. Banks assume no risk.

Billions moves through our credit card systems and banks take the attitude of taking just a bit off everyone is OK. But, the cumulative 'bit' is an absolutely ludicrous amount of money that is disproportionate to the investment in systems.

Isn't most of this mostly just on-charging the rates from Visa, Mastercard, etc?

Paywave attracts a higher fee.

I'm not against the fee, just the levels.

richms

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#2205241 26-Mar-2019 18:56

rugrat:

Places that take credit cards tell me that it costs them more for payWave then a chip credit card payment. So above doesn’t seem to add up.

Thats a lie in most cases.

Reason that work doesnt take it is that about 80% of the eftpos would become paywave because of debit cards.

They need to reign in the banks with those things making a killing when providing nothing to the user. Debit card costs are regulated elsewhere, but in NZ merchants are forced onto blended rates unless they want to pay significantly more for some credit cards (platinum cards have an absurdly high rate on non blended) and that is if the bank will even allow them to move off blended.

since signature is a higher fee again than anything else, perhaps we should all get signature re-enabled on our cards and use that at places without paywave just to slow them down and cost them more?

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rugrat

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#2205246 26-Mar-2019 19:03

richms:
rugrat:

Places that take credit cards tell me that it costs them more for payWave then a chip credit card payment. So above doesn’t seem to add up.

Thats a lie in most cases.

Reason that work doesnt take it is that about 80% of the eftpos would become paywave because of debit cards.

That’s interesting, so the bar that wouldn’t take payWave during non busy times, was wrong in thinking it would cost more, I was doing it as a CC transaction and he knew that.

DarthKermit

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#2205249 26-Mar-2019 19:23

I've got by fine in life without a paywave card. EFTPOS or cash work for me.

Geektastic

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#2205257 26-Mar-2019 19:34

I use it all the time. Never pay with my phone though.

robfish

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#2205277 26-Mar-2019 20:10

I recently had a week at Surfers Paradise using nothing but my phone or FitBit to pay for everything. I loved it.

I saw the TVNZ news item comparing charges in different countries. It made me angry.

Rob

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#2205321 26-Mar-2019 21:00

Also what can be irritating is some shops have a mix of Paywave and non Paywave terminals in the same shop.

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#2205323 26-Mar-2019 21:04

Geektastic: Also what can be irritating is some shops have a mix of Paywave and non Paywave terminals in the same shop.

In that case go to the non paywave one and then go "well I only have my phone on me" and make them re-do it at a second counter.

Richard rich.ms

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#2205430 27-Mar-2019 00:03

robfish:

I saw the TVNZ news item comparing charges in different countries. It made me angry.

It also applies to the price of building hardware. I checked the price of one piece of a gutter fitting in NZ, and compared it to the price of the same fitting in OZ in the same big box retailer, and it was almost double in NZ. $59 AUD in Oz , compared to $112 NZD in NZ, for exactly the same fitting. No wonder building in NZ is so expensive compared to Oz, we need some decent competition. A pity they don't seem to run stories on prices differences these days. Campbell live used to do it all the time with food prices.

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#2205456 27-Mar-2019 07:20

tripp:

The local shop up the road use to have paywave but got it removed as they were getting hit with 200 - 500 a month in fees just for that alone (so they told me when i asked about it). They would rather wait the extra 10 seconds for a customer to put in their card and pin. I think more retailers would have it if it was a flat fee each month or per transaction (i.e. 5 cents a transaction).

I love pay wave but I totally understand why shops don't have it with the fees that are charged.

Paywave fees are identical to normal credit card fees - there is zero difference between the two despite media continuing to spread misinformation claiming there is a difference, and some retailers believing that there is.

The problem with Paywave and Paypass is that they encourage credit card usage vs just using regular EFTPOS so retailers end up paying the higher credit card transaction fees on every transaction vs EFTPOS which is unlimited transactions for a small monthly fee. If stores disable contactless in their terminals but people still continue to pay by credit card they will see no change in the fees they pay.

A retailer has a choice of blended or unblended fees meaning they pay the same % for all credit card transactions, or pay different prices for different types of cards. Most retailers will opt for blended and be paying around 2.5% - 3% in total which covers interchange and processing fees. If you're on a non blended fee option your debit card rates will be a lot lower than credit cards .

New Zealand was expected to follow Australia and the UK and slash interchange fees with the MBIE report due out just before the 2017 election. This was delayed due to the election and was expected out around April 2018 but since then Minister Faafoi seems to have been MIA when it comes to announcing if and when this will ever appear. If people are angry about the situation he's the person you should be contacting about credit card interchange.

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#2205485 27-Mar-2019 08:45

NZ merchants are not charged for debit (cheque/savings) transactions. They are charged for credit transactions. As mentioned above, contactless transactions are processed as credit transactions. This includes Visa Debit and Mastercard Debit. In Australia merchants are charged for credit and debit transactions, so accepting contactless is less of a barrier. Part of the fee charged goes to Visa/Mastercard. Patent costs restrict the ability for local banks to offer contactless debit transactions, though this is available in Australia.

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