Issue with Paywave

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Forums › Finance and wealth management › Issue with Paywave

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raytaylor

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#1417931 31-Oct-2015 23:49

Ahh Yes I should clarify my question relates to debit cards.

One would assume the fact that paywave / paypass appear to be products of Visa and Mastercard - American corporations that dont really need to be involved in a simple Eftpos transaction where our local banks can handle it, aside from the RFID technology they have bought to the terminal.

So now I am thinking - those RFID chips in your phones - does mastercard or visa need to be involved there? Could the local NZ based bank just create an app that presents your eftpos card via your phone's RFID chip?
Perhaps this is already happening.

Ray Taylor

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freitasm

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#1417932 31-Oct-2015 23:52

Kyanar:
freitasm: Paywave charges for merchants are the same as credit card.

This is not actually true. The Mastercard Interchange Fees show a different rate for contactless (treating it the same as a Strategic Merchant). Visa appear to vary per issuer.

If you're signed up to Interchange Plus, then you will see that reflected as lower merchant fees. However if you're signed up as Blended, every transaction is the same.

Even better then. People seemed to think Paywave was MORE expensive.

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Kyanar

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#1417939 1-Nov-2015 01:04

raytaylor:
So now I am thinking - those RFID chips in your phones - does mastercard or visa need to be involved there? Could the local NZ based bank just create an app that presents your eftpos card via your phone's RFID chip?
Perhaps this is already happening.

Unfortunately no. There would need to be terminal support for the NFC and eftpos application as well. Here in Australia we are currently trialling an eftpos contactless chip and (so regular bank eftpos cards support tap and go). I would expect once it's up and going, New Zealand will adopt similar technology. That's a way away though.

richms

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#1417942 1-Nov-2015 01:41

Kyanar:

Unfortunately no. There would need to be terminal support for the NFC and eftpos application as well. Here in Australia we are currently trialling an eftpos contactless chip and (so regular bank eftpos cards support tap and go). I would expect once it's up and going, New Zealand will adopt similar technology. That's a way away though.

I was under the impression this was the whole end game for semble in NZ?

If all they are doing is to put a visa card in my phone and call that done then they are pretty pointless.

Richard rich.ms

sbiddle

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#1418073 1-Nov-2015 10:34

raytaylor:
My question to those in the know is How much of those merchant fees stay within New Zealand, and How much go overseas to Visa or Mastercard?

The answer to that isn't going to be well known, but most of it will stay with the banks.

Those fees are primarily what funds credit card loyalty programs which at the end of the day is the bank giving you back some of the fees that you've paid. It's the reason why Airpoints earn on the new Westpac debit card for example is so poor compared to a Westpac Platinum card - because the fees they earn on a debit card are a lot less.

The EU is seriously clamping down on interchange fees, and after a lot of talk Australia is once again promising to clamp down on excessive fees by retailers. They have promised the same thing a few times in recent years with no noticeable impact though.

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