When will paywave be mandatory ??

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

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348 posts

Ultimate Geek

#1233271 9-Feb-2015 09:42

jarledb: From what I understand the average margin on groceries are very slim, so having to pay around 2% transaction fee would mean you are basically giving the groceries away. Thats why you won't see any of the big grocery chains accepting credit cards or paywave.

Untrue - I use paywave with my debit card at New World all the time.

markl

348 posts

Ultimate Geek

#1233272 9-Feb-2015 09:46

sbiddle:
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.

Sooo....it DOESN'T cost the same. EFTPOS and Paywave (whether via debit or credit card) cost different amounts for merchants, with Paywave being more expensive.

mckenndk

911 posts

Ultimate Geek

#1233274 9-Feb-2015 09:50

markl:
jarledb: From what I understand the average margin on groceries are very slim, so having to pay around 2% transaction fee would mean you are basically giving the groceries away. Thats why you won't see any of the big grocery chains accepting credit cards or paywave.

Untrue - I use paywave with my debit card at New World all the time.

Its only Countdown that does not take debit paywave to avoid the transaction charges.

coffeebaron

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#1233275 9-Feb-2015 09:51

http://tvnz.co.nz/content/191286/423466/article.html

I believe VISA and MasterCard chased the Supermarkets to accept their cards; then later tried to hike their fees.

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markl

348 posts

Ultimate Geek

#1233276 9-Feb-2015 09:53

mckenndk:
markl:
jarledb: From what I understand the average margin on groceries are very slim, so having to pay around 2% transaction fee would mean you are basically giving the groceries away. Thats why you won't see any of the big grocery chains accepting credit cards or paywave.

Untrue - I use paywave with my debit card at New World all the time.

Its only Countdown that does not take debit paywave to avoid the transaction charges.

Correct - typical consumer-last behaviour from them

markl

348 posts

Ultimate Geek

#1233277 9-Feb-2015 09:54

coffeebaron: http://tvnz.co.nz/content/191286/423466/article.html

I believe VISA and MasterCard chased the Supermarkets to accept their cards; then later tried to hike their fees.

Is that still relevant? That article was posted 12 years ago!!!

mckenndk

911 posts

Ultimate Geek

#1233278 9-Feb-2015 09:56

markl:
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

It was announced in the US in 2007, don't know if there was any terminals out.
I remember people wanting to try out google wallet when it was released had to search far and wide for a contactless terminal to test it out.

I first saw them in London in 2008 at McDonalds.

In NZ the first place I saw them was at a small movie theatre in Courtney place and they had a terminal similar to this around 2011, the exception being the McDonalds one which I never had a chance to try.

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Geektastic

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#1233280 9-Feb-2015 10:02

markl:
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

Mobil was one of the most notable early adopters of this technology, and offered their "Speedpass" contactless payment system for participating Mobil gas stations as early as 1997. Although Mobil has since merged with Exxon, the service is still offered at many of ExxonMobil's stations. Freedompay also had early wins in the contactless space with Bank of America and McDonald's.

(Wikipedia)

Geektastic

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#1233282 9-Feb-2015 10:13

markl:
jarledb: From what I understand the average margin on groceries are very slim, so having to pay around 2% transaction fee would mean you are basically giving the groceries away. Thats why you won't see any of the big grocery chains accepting credit cards or paywave.

Untrue - I use paywave with my debit card at New World all the time.

Margin very slim = BS in many cases.

Look at how much the supermarkets spend on advertising to us these slim pickings.....and how much they turn over. They have adequate funds to buy television advertising time to tell us that chicken thighs have a dollar off, for example...

My wife buys milk in the Fonterra staff shop at less than 50% of what it retails for and you can bet that Fonterra are still making a few cents even at that price.

nzkiwiman

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#1233308 9-Feb-2015 11:31

I don't yet have a card that supports Paywave/pass
Maybe when both the eftpos and debit cards get refreshed this year I'll get a support card and then I can "test"

mckenndk

911 posts

Ultimate Geek

#1233311 9-Feb-2015 11:37

nzkiwiman: I don't yet have a card that supports Paywave/pass
Maybe when both the eftpos and debit cards get refreshed this year I'll get a support card and then I can "test"

Most banks charge $10 a year for them so unless you want to use your card online or make it easier while traveling places it's not really needed.

Both my UK and Canada banks only give debit cards as your main card.

coffeebaron

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#1233330 9-Feb-2015 12:03

markl:
coffeebaron: http://tvnz.co.nz/content/191286/423466/article.html

I believe VISA and MasterCard chased the Supermarkets to accept their cards; then later tried to hike their fees.

Is that still relevant? That article was posted 12 years ago!!!

Yeah, noticed that just after posting. I do recall a more recent episode of this, so maybe it's not the first time they tried to hike fees. Main point though is the supermarkets get a less than 1% fee deal, and I believe this is still the case.

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muppet

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#1233341 9-Feb-2015 12:29

I'll be annoyed when PayWave becomes so accepted that people don't stare at me like I'm an Alien when I pay with my ASB PayTag.

Especially in Small Town Napier.

The only places that seem to have it are the big stores (New World, Harvey Norman, the 1 letter petrol station) - the local bottle store has a sign on their terminal that says "NO PAYWAVE", they must have been annoyed by people asking/trying.

old3eyes

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#1233346 9-Feb-2015 12:43

Geektastic:
markl:
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

Mobil was one of the most notable early adopters of this technology, and offered their "Speedpass" contactless payment system for participating Mobil gas stations as early as 1997. Although Mobil has since merged with Exxon, the service is still offered at many of ExxonMobil's stations. Freedompay also had early wins in the contactless space with Bank of America and McDonald's.

(Wikipedia)

Pity Mobil in NZ dropped the ball with technology and removed pay at the pump features..

Regards,

Old3eyes

bongojona

253 posts

Ultimate Geek

#1233348 9-Feb-2015 12:45

My local small florist told me it's very expensive for the retailer to set it up so they have decided not to.

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