When will paywave be mandatory ??

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

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#1232922 8-Feb-2015 14:37

I've managed to get a few dairys to shift their broadband capable EFTPOS off dialup and onto broadband. I lot of it is just lack of knowledge of the options.

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SteveON

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#1232946 8-Feb-2015 15:54

Pay wave costs retailers extra $$$ - Till it costs the same, then nothing will change.

sbiddle

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#1233022 8-Feb-2015 17:51

SteveON: Pay wave costs retailers extra $$$ - Till it costs the same, then nothing will change.

No it doesn't. The only exception is debit cards.

sdavisnz

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#1233065 8-Feb-2015 18:49

sbiddle:
SteveON: Pay wave costs retailers extra $$$ - Till it costs the same, then nothing will change.

No it doesn't. The only exception is debit cards.

Please explain

Voice gives context

sbiddle

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#1233067 8-Feb-2015 18:51

sdavisnz:
sbiddle:
SteveON: Pay wave costs retailers extra $$$ - Till it costs the same, then nothing will change.

No it doesn't. The only exception is debit cards.

Please explain

As discussed in many posts above, debit cards when used for Paywave/Paypass incur additional charges over a debit card used in the chip reader as it's processed as a credit card transaction, which can incur higher merchant fees.

sonyxperiageek

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#1233095 8-Feb-2015 20:01

I use PayWave whenever I can. It's quick and easy, especially for all my small purchases e.g cafe, Maccas etc. I am still annoyed by Countdown's PayWave policy on Debit cards; I'm sure they make enough money over the year to justify that extra convenience for customers?! Plus like someone else here said, they probably get a better-than-everyone merchant rate for processing VISA transactions...

The other PayWave thing I use is PayTag by ASB which sticks to the back of your phone. If a retailer accepts PayWave, the checkout operator always says: "Were you just going to pay with your phone?!"

We all know that isn't 100% true!

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nate

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#1233192 8-Feb-2015 22:53

jarledb: I have seen merchant fees around 1.25% (don't know about NZ, this was in Norway). So it certainly is possible to get them lower than 2-3%.

That would be nice, my rate isn't close to that. I also have a client who does $1 million a year and isn't getting close to that either.

richms: If they would put a heavy surcharge on places using dialup still - That infrastructure cant be cheap to maintain, right? ;) then it would push more places to get it on the internet and not so slow.

There is a $5 fee for dialup now - see here.

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Geektastic

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#1233209 8-Feb-2015 23:25

sdavisnz: Looking forward to the day I can pay a transaction of Bitcoin from my nfc smartphone...

By the time you can do that here, they will be accepting Omnicorp Galactic Credits via holographic tattoo implants overseas...;-)

Geektastic

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#1233211 8-Feb-2015 23:26

sbiddle:
Geektastic:

My principle objection is retailers dumping it on consumers. If they want our money, they should make it easy for us and wear the cost of doing so. Amazon, Tesco, Zappos etc don't charge more to use a credit card - I'd never even encountered such a concept until I moved to NZ.

You can thank the Commerce Commission.

Why so? Have they passed a law requiring retailers not to absorb costs?

benokobi

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#1233213 8-Feb-2015 23:41

SATTV: You have to remember that paywave is relatively new technology, merchants will start accepting it when they update their terminals.
Some people lease their terminals and change them every three years, some own them and will change them when they are forced to.
As a merchant I believe you have to pay extra to have the functionality on your terminal/

Personally I think paywave has its place, I am not anti contact less transactions, I however don't like it, I like to be able to select what account something comes from, I have had three accounts loaded on my credit card for years, now I have to go back to two cards if I want to pay for something from my personal or Joint account.

John

Do you know what account the paywave defaults to?

Aredwood

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#1233222 9-Feb-2015 01:16

benokobi:
SATTV: You have to remember that paywave is relatively new technology, merchants will start accepting it when they update their terminals.
Some people lease their terminals and change them every three years, some own them and will change them when they are forced to.
As a merchant I believe you have to pay extra to have the functionality on your terminal/

Personally I think paywave has its place, I am not anti contact less transactions, I however don't like it, I like to be able to select what account something comes from, I have had three accounts loaded on my credit card for years, now I have to go back to two cards if I want to pay for something from my personal or Joint account.

John

Do you know what account the paywave defaults to?

Paywave always defaults to "credit". This is why Countdown and some other retailers don't allow paywave on debit cards. As paywave gets processed as a credit card transaction. Meaning the store has to pay an interchange fee to their bank / merchant facility provider. Yet to the customer using a debit card the money still comes out of the same account. So no benefit to them (apart from not having to insert their card).

I see it mostly as a way of the banks trying to take a cut out of alot of the eftpos transactions. 2% of even just 1/10th of all eftpos transactions is still alot of money.

For me paywave offers no benefits. As alot of places I shop at don't accept it. The ones that do Im often spending over $80 So still have to enter my pin. (no time saving) And paying with a fuel card at gas stations is a pain. As I have to make sure my wallet doesn't get too close to the eftpos terminal. Otherwise it will charge the fuel to my credit card instead of the fuel card. This almost happened to me. The lights on top of the terminal started lighting up. Was able to move my wallet away just in time to cancel the transaction.

sbiddle

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#1233231 9-Feb-2015 07:20

Geektastic:
sbiddle:
Geektastic:

My principle objection is retailers dumping it on consumers. If they want our money, they should make it easy for us and wear the cost of doing so. Amazon, Tesco, Zappos etc don't charge more to use a credit card - I'd never even encountered such a concept until I moved to NZ.

You can thank the Commerce Commission.

Why so? Have they passed a law requiring retailers not to absorb costs?

They took Court action against the Credit Card companies (ACCC did around the same time). The outcome wasn't so much law changes, but the ability in both countries for retailers to charge a surcharge for credit card transactions, which is something that wasn't really permitted beforehand.

richms

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#1233235 9-Feb-2015 07:37

nate: There is a $5 fee for dialup now - see here.

$5 is not heavy. I'm thinking more like 20c per transaction or more.

Richard rich.ms

khull

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#1233246 9-Feb-2015 08:17

richms:
khull: I think Nate's statistics (I have yet to visit your cafe - just keep forgetting) shows a large majority of people are 'rational' and spending on food on money they actually have (cash/eftpos) - however I suspect a large proportion also load up on the credit card for larger purchases thinking it is okay to do so after being able to afford to eat out and pay settle without putting it on credit

Or they are preferring the convenience of paypass/paywave, or they are managing their money well and using the free credit for up to 55 days to allow them to leave their money somewhere else for that time.

If you have a $3000 limit and you average half that over the whole month, that's basically 2-3% of $1500 thru the year, in addition to any rewards incentives you get for using the card. Just because there are some people that cannot handle the cards and end up paying interest on things doesn't mean that everyone is useless with money.

And that is what we exactly what we need. People can budget accordingly and should - therefore paying by credit isn't the 'evil' being seen.

Especially the baby boomer generation (sorry another generalisation) attitude of withdrawing cash every week to spend that amount to stay within the limit. Except that it has moved on from cash to EFTPOS cards instead of credit.

Thinking back - how long did it take for people to switch mass addopted tech - XP to 7/8? dumb phones to smart phones? typewriters? cheques?

markl

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#1233269 9-Feb-2015 09:35

Geektastic: When you say relatively new, do you mean here? I believe it was first offered in the US in 1997..and the UK in 2008.

Paywave offered in the US???? You're kidding right? The country where they still do PAY CHECKS as a standard means of paying people, where EFTPOS is virtually non-existant, and where you still have to SIGN for credit card payments at most retailers

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