There were a whole lot of special "contactless" deals rolled out under COVID, but I think many of them may be due to expire,

It will be interesting to see if the sticky-tape labels start to make an appearance again....

It was only free for ANZ customers for a short time due to Covid

@beenz Edit: Finished 30/06 answer found in 2 second google search

Various threads about it here over time.

Was re-visited last night by media as a result of your same inquiry and the contracts for free use now lapsing. Some are extending by case basis (mentioned at end)

https://www.newshub.co.nz/home/money/2020/07/small-businesses-urge-banks-to-reduce-paywave-fees-permanently.html

The crux is, you basically pay credit card fees the same as swiping or inserting it for contactless.

Taking away the paywave feature, reduces the number of likely CC/debit payments/day you will get.

Is why many coffee shops don't. One in wellington last year worked out how much they were losing based on the sheer number of transactions. It wasn't that it was more expensive, it was that more people made use of it so they had more % off profits in a lump debit

Is there any reason for the additional charge over normal eftpos?

The customer has half the required tech in the card and the retailer's unit often already has the other half in. What exactly is the rationale for any additional charge?

Geektastic:

Is there any reason for the additional charge over normal eftpos?

 

The customer has half the required tech in the card and the retailer's unit often already has the other half in. What exactly is the rationale for any additional charge?

Think Inter-Bank fees are a small percentage of it.

In large, I think those in the know explained it was down to the eftpos provider often prefers a bank to handle the transaction (paymark who the 4 banks started then sold or Eftpos NZ for instance) 

Then you have the retailers bank. And then the card holders bank that needs to shake hands with them and do the money move.

And with that you have multiple Debit providers that provide the cards and services appearing 'as' your bank, but in reality outsourced/on behalf of your bank (check the back of your CC and note for issues you call a different division/company in some cases)

Clip clip clip that ticket!

Geektastic:

 

Is there any reason for the additional charge over normal eftpos?

 

 

 

The customer has half the required tech in the card and the retailer's unit often already has the other half in. What exactly is the rationale for any additional charge?

 

EFTPOS costs are absorbed by the banks. 

It was implemented that way to get tractin when first introduced and remained like that. Because of this, there won;t be any investment in the EFTPOS infrastructure in the foreseeable future. 

Contactless (PayWave/PayPass etc) transactions go via the "Scheme Rails"  - i.e. not the EFTPOS network, but the Visa/MasterCard networks. 

There's considerable cost to maintain this infrastructure, as well as many hands to pass through. 

Merchant Service Fees for large corporates can often be cheaper for Contactless, but the smaller businesses are usually charged as a "blended" merchant rate, which means all credit card and contactless or online debit card transactions are charged at the same rate. 

Small merchant moving to contactless often find that EFTPOS transactions are converted in large numbers to contactless (therefore charged as "credit card" transactions", due to people using the contactless debit cards for the convenience of it. 

Large merchants are usually on a different (and significantly cheaper) method of charging for their card transactions and are rarely on a blended rate, meaning that the cheaper contactless or micro-transaction charges are passed through as they stand plus a margin, rather than at the same rate as a platinum or Titanium credit card etc. 

Handsomedan:

 

Geektastic:

 

Is there any reason for the additional charge over normal eftpos?

 

 

 

The customer has half the required tech in the card and the retailer's unit often already has the other half in. What exactly is the rationale for any additional charge?

 

 

EFTPOS costs are absorbed by the banks. 

 

It was implemented that way to get tractin when first introduced and remained like that. Because of this, there won;t be any investment in the EFTPOS infrastructure in the foreseeable future. 

 

Contactless (PayWave/PayPass etc) transactions go via the "Scheme Rails"  - i.e. not the EFTPOS network, but the Visa/MasterCard networks. 

 

There's considerable cost to maintain this infrastructure, as well as many hands to pass through. 

 

Merchant Service Fees for large corporates can often be cheaper for Contactless, but the smaller businesses are usually charged as a "blended" merchant rate, which means all credit card and contactless or online debit card transactions are charged at the same rate. 

 

Small merchant moving to contactless often find that EFTPOS transactions are converted in large numbers to contactless (therefore charged as "credit card" transactions", due to people using the contactless debit cards for the convenience of it. 

 

Large merchants are usually on a different (and significantly cheaper) method of charging for their card transactions and are rarely on a blended rate, meaning that the cheaper contactless or micro-transaction charges are passed through as they stand plus a margin, rather than at the same rate as a platinum or Titanium credit card etc. 

 

 

 

 

 

Thanks. I see. I think..!

The lady who does my massages said to me yesterday that when the free contactless ends, she won't renew it because for her small business it is too expensive. It seems a shame to lose something that so many find so convenient.

Handsomedan:

 

Geektastic:

 

Is there any reason for the additional charge over normal ...

 

 

EFTPOS costs are absorbed by the banks. 
...

 

Contactless (PayWave/PayPass etc) transactions go via the "Scheme Rails"  - i.e. not the EFTPOS network, but the Visa/MasterCard networks. 

 

There's considerable cost to maintain this infrastructure, as well as many hands to pass through. 

 

...

 

Paywave infrastructure is a capital cost + relatively small maintenance. The capital cost is sunk. The relatively small maintenance cost is a rounding error on large banks operating budget.

The charges for payWave are a ripoff goldmine for the providers, and there is no need for it. These charges are banned in Australia and there is no reason why they shouldn’t be banned here also.

BlinkyBill:

 

Handsomedan:

 

EFTPOS costs are absorbed by the banks. 
...

 

Contactless (PayWave/PayPass etc) transactions go via the "Scheme Rails"  - i.e. not the EFTPOS network, but the Visa/MasterCard networks. 

 

There's considerable cost to maintain this infrastructure, as well as many hands to pass through. 

 

...

 

 

Paywave infrastructure is a capital cost + relatively small maintenance. The capital cost is sunk. The relatively small maintenance cost is a rounding error on large banks operating budget.

 

The charges for payWave are a ripoff goldmine for the providers, and there is no need for it. These charges are banned in Australia and there is no reason why they shouldn’t be banned here also.

 

The banks in NZ are totally different to their parent companies in Australia. Here they would never engage in any immoral practices to inflate their profits.

Yeah right.

BlinkyBill:

 

These charges are banned in Australia and there is no reason why they shouldn’t be banned here also.

 

Having a government that appears totally indifferent to this issue is the biggest one that springs to mind, .....

1st world problem. Paywave saves you what, three valuable seconds over swiping and entering a 4 digit PIN for eptpos?

dafman:

 

1st world problem. Paywave saves you what, three valuable seconds over swiping and entering a 4 digit PIN for eptpos?

 

Maybe. But I find it handy to be able to use apple pay when I've left my wallet at home, or dont have a particular card on me, or my card's chip is stuffed and I'm sick of paying the replacement fee every couple of months to get it going again. And sometimes when you DO get the card replaced, they go ahead and give you a different number so you have to go thru all the companies billing that old card number and update them. Just a royal pain in the ass. That's my experience anyway.

dafman:

 

1st world problem. Paywave saves you what, three valuable seconds over swiping and entering a 4 digit PIN for eptpos?

 

Paywave may not be a necessity but certainly a feature I'd hate to go without, and would appreciate being rolled more widely; already I've noticed a number of retailers that have removed the feature over the past few weeks.

For me, it's not so much the saved time but the convenience provided by GooglePay - for example, not having to carry my wallet with me at all times means that I know I can pop into the supermarket on a walk. (I'm so attached to this I'd be unlikely to switch my credit card to a bank that didn't support GP.)