Archive for the ‘ Payments & Credit Cards ’ Category

Seven Myths About New Credit Card Fees

schropfer2.jpgIt’s been called a “Surcharge,” “Swipe Fee,” “Credit Card Fee” “Interchange,” or a “Checkout fee.” Until today, retailers were not allowed to pass these fees on to their customers. If you heard about it in the news, you may have the impression that you will have to pay 4% more for everything starting today. That is a myth, and it is not the only one:

Myth 1: A law creating new credit card fees became effective on January 27, 2013.

No new fees were created today, just the question of who pays those fees. Also, no new laws were created today either. Here is what actually happened:

For over 50 years, retailers have paid fees of about 1.5% to 3% to credit card companies (and others) every time a customer paid with a Visa or MasterCard. Also for the last 50 years, Visa and MasterCard had a rule prohibiting retailers from forcing their customer to pay those ‘checkout’ fees. Visa and MasterCard dropped that rule, effective today.

Why did they do that? Continue reading


Top 8 Features of Square-Starbucks Launch


Starbucks Mobile (Photo Credit:

Square launched at Starbucks today, and it is an interesting step forward in the world of mobile commerce – not just for Starbucks, but for other Square retailers.

For all of the good and not-so-good features of Square’s new app, remember that it is Square’s “Model T Ford.” They are just getting started in the world of feature-rich apps for consumer use. Also, integration with traditional POS systems is new for Square. Overall, this is a good start that Square will use as a foundation for future development. Here are the eight key elements of Square’s new smartphone app, including its use at Starbucks:

1) IT WORKS: The fact that this system functioned on launch day is remarkable, given Starbucks’s 7,000 stores have been working on this implementation for only three months. There is always the possibility of a major software problem with the product launch on such a large-scale. But, software glitches did not happen with Square & Starbucks. [Do you have information to the contrary? Just comment on this article.]

2) SECURITY AT STARBUCKS: So far, Starbucks is using Continue reading

Over 50 New Mobile Commerce Events

signature on phoneLooking for a sign that the mobile commerce space is growing? Take a look a the swelling number of conferences on our updated calendar of mobile commerce events.

It includes over 50 new events scheduled over the course of the next twelve months. In addition, some events that were rescheduled due to Hurricane Sandy are also included. This includes the NFC Payments USA Conference that has been rescheduled to December 10 and 11 because of the hurricane.

Predicatively, the volume of conferences falls off dramatically after December 11 for the holiday season, but picks back up by late January 2013.

Continue reading

WSJ Reports ISIS Launch Date is October 22, 2012

Wall Street Journal reports ISIS Launch Date will be October 22, 2012

A rumor that has been circulating for several days appears to have been confirmed: the Isis mobile wallet will launch in its two test cities (Austin and Salt Lake City) on Monday October 22, 2012. The rumor received some credibility when the Wall Street Journal reported it today. Also, the twitter account @paywithisis, which is unverified but appears to be legitimate, tweeted this today, “It’s official: We’re launching in Austin and SLC on Oct. 22”

It is important to note that the Isis web site has no press releases regarding an October 22 launch date as of today.

The WSJ article reports the following: Continue reading

PayPal Introduces ‘Bypass’ Model to Retail Payments

2011 Mobile Money ForumTwenty-five years ago, telecommunications was facing their biggest threat since deregulation, and most executives did not take the threat seriously. Ten years later, it had decimated international telecom revenue models and profitability. Today, it is the reason that most phone calls cost close to nothing. It’s called “Bypass,” and it has just appeared in the payment card industry. If you are a payment industry executive (or investor), don’t make the same mistake as your telecom colleagues by ignoring this trend.


PayPal’s announcement on May 25 received significant Continue reading

Contactless EMV – What is the Value to Retailers?

VeriFone can process EMV transactions using NFC through Vantiv.

Retailers often ask, “What new POS equipment should I buy?” My answer has been the same for almost 4 years: “Nothing, yet.” My logic is this: The upcoming liability shift occurs in October 2015 for merchants that have not deployed EMV. So, any retailer that wants to accept Visa, MasterCard and/or Discover after October 2015 needs to buy and deploy EMV equipment before then, if they have not already.

But EMV is predominately a contact sport -meaning that two computers need to plug into each other physically for it to function, which is why a contact EMV card needs to be inserted (or “dipped”) into the physical slot in the terminal until the transaction is over.

So, how do you ‘dip’ a Smartphone into a slot? There are two ways:

Continue reading

Bold Statement from Payment Industry Leader

Verifone's Opinion about NFC

When VeriFone speaks, they often reveal the next advances in Mobile Commerce. They spoke clearly at the GSMA conference earlier this month regarding both Near Field Communications (NFC) and Mobile Network Operators (MNOs).

In October of 2010 when VeriFone announced that for the first time their systems could circumvent the established payments industry, it received little fanfare because there was no adoption and no clear path to mass appeal. Today, every Home Depot in the United States accepts PayPal as a form of payment, and that is only the beginning. Next, in 2011 VeriFone announced its services would expand to include loyalty and social media components, and again the popular reception was, “yeah, that will be great someday.” But today, behemoth Google considers VeriFone a key strategic partner. This month, when VeriFone clarified its position on NFC and opened the doors for MNOs, it is likely reveals the next industry steps once again. They said:

Continue reading