Apple Pay: do they take a comission?

[space-time]

all credit cards take a comission, which drives prices up for all of us. We get some of this back in form of rewards, miles, points, etc.

From what I have seen in the keynote, ApplePay is on top of the credit cards, i.e. you still need an AMEX, a VISA or MC. Apple is not a bank. So do they add a comission on top of the Credit Card comission? will this drive prices up even further?

[graylocks]

space-time wrote:
all credit cards take a comission, which drives prices up for all of us. We get some of this back in form of rewards, miles, points, etc.

From what I have seen in the keynote, ApplePay is on top of the credit cards, i.e. you still need an AMEX, a VISA or MC. Apple is not a bank. So do they add a comission on top of the Credit Card comission? will this drive prices up even further?

i would think that even if Apple did take a cut it would be negotiated from the CC companies taking a lower cut than they normally do.

[mattkime]

I'm not sure how it works but the answer appears to be no. That said, you'll still use a payment processor and they'll take their cut

[RAMd®d]

I'm not sure how it works but the answer appears to be no.

I don't know either, but I'd bet "no".

And as gl said, if Apple got a slice, it would most likely come from the CCCs and not the consumer.

That would be just begging for backlash.

[Racer X]

If Apple's process cuts down on fraud and loss, you can bet the credit card processors and banks will cut a deal.

[Bimwad]

The card associations (Visa, MasterCard) are owned by the banks, and serve to license the trademarks, handle the transactions (authorization, processing, settlement), and administer the rules of the programs (merchant fees, merchant rules, security, etc.). I'm not sure how much, but at least some of the actual transaction processing is done by smaller companies under contract.

The member banks pay fees to take part in these programs, and issue the branded cards.

Like any other member, Apple will have to pay the association dues to participate in these programs, and fees for the transactions that are processed through their systems. Given their size, potential volume, and clout, they were probably able to negotiate a deal as good, if not better than most other banks, but there are still transcation fees involved.

It costs money to establish and operate these networks, and given a choice, few people, and companies will work for free. Visa and MC are no different. They owe it to their shareholders not to.

AMEX entered the business a little differently. They started by issuing charge (not credit cards), but now are mostly similar to the other two.

[Speedy]

Racer X wrote:
If Apple's process cuts down on fraud and loss

There is always a way to steal. Local merchants are having their credit card swipe machines stolen. The bad guys then empty the merchants' bank accounts and apply charge backs to cards the crooks have.

[RAMd®d]

There is always a way to steal.

He said cut down, not eliminate.

[rgG]

Apple Inc. will reap fees from banks when consumers use an iPhone in place of credit and debit cards for purchases, a deal that gives the handset maker a cut of the growing market for mobile payments, according to three people with knowledge of the arrangement.

http://www.bloomberg.com/news/2014-09-10...ource=digg&utm_medium=email

[GuyGene]

Racer X wrote:
If Apple's process cuts down on fraud and loss, you can bet the credit card processors and banks will cut a deal.

That's the ticket, Racer!! And, it is the REASON I will finally buy an iPhone! Full price. It will be worth it to me not to have my credit card number stolen again.