Comments on: Home Depot, Best Buy In Contactless Interchange Fee Showdown http://storefrontbacktalk.com/payment-systems/home-depot-best-buy-in-contactless-showdown/ Techniques, Tools and Tirades about Retail Technology and E-Commerce Wed, 08 Feb 2012 16:02:40 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: Vinny http://storefrontbacktalk.com/payment-systems/home-depot-best-buy-in-contactless-showdown/comment-page-1/#comment-62938 Vinny Sun, 26 Jul 2009 15:55:16 +0000 http://www.storefrontbacktalk.com/?p=3356#comment-62938 I find it interesting how these companies are each going about implementing the contactless based system. I wonder how the hackers are going to react to this actually. Will we see an updated security for those making a purchase. I find it interesting how these companies are each going about implementing the contactless based system. I wonder how the hackers are going to react to this actually.

Will we see an updated security for those making a purchase.

]]> By: Conrad S http://storefrontbacktalk.com/payment-systems/home-depot-best-buy-in-contactless-showdown/comment-page-1/#comment-62936 Conrad S Fri, 24 Jul 2009 14:57:35 +0000 http://www.storefrontbacktalk.com/?p=3356#comment-62936 For non-micropayments, the contactless card still needs a signature, which is what takes the time. Plus, payment processing is rarely the bottleneck in retail lane throughput. There is no business case for the retailer and its a gimmick for the consumer and yet another clever mechanism for the associations to raise interchange. For non-micropayments, the contactless card still needs a signature, which is what takes the time. Plus, payment processing is rarely the bottleneck in retail lane throughput. There is no business case for the retailer and its a gimmick for the consumer and yet another clever mechanism for the associations to raise interchange.

]]> By: Todd Michaud http://storefrontbacktalk.com/payment-systems/home-depot-best-buy-in-contactless-showdown/comment-page-1/#comment-62921 Todd Michaud Thu, 16 Jul 2009 14:14:54 +0000 http://www.storefrontbacktalk.com/?p=3356#comment-62921 The biggest challenge with contactless in today's retail environment is that all of the different players involved: Customers, Merchants, Acquirers, Associations, Hardware Manufacturers, etc. all have different motivations for wanting contactless implemented, and those motivations aren't in alignment. Just like in the commercials when everything comes to a halt in the store when someone uses cash or check, Visa and Mastercard are motivated by the "Cash is Bad" mantra. The more you use electronic payments, the more money we (Associations) make. If contactless cards can get one-tenth of one percent of cash payments turned to electronic, then it is good for them. The merchants are looking to enhance speed and improve brand loyalty. The lack of acceptance by the customers are causing those benefits not to materialize. Worse yet, the few customers that are using the technology are causing the merchants to pay higher fees, so they actually hurt the business. As far as the customers go, I personally don't think we will see widespread adoption until NFC, or a competing standard, becomes commonplace. Since the carriers, device manufacturers and associations can't get their act together on who is going to get paid in an NFC world, I'd personally like to see a bluetooth solution created (Thank you Apple and Google) that does an end-run around NFC. The biggest challenge with contactless in today’s retail environment is that all of the different players involved: Customers, Merchants, Acquirers, Associations, Hardware Manufacturers, etc. all have different motivations for wanting contactless implemented, and those motivations aren’t in alignment.

Just like in the commercials when everything comes to a halt in the store when someone uses cash or check, Visa and Mastercard are motivated by the “Cash is Bad” mantra. The more you use electronic payments, the more money we (Associations) make. If contactless cards can get one-tenth of one percent of cash payments turned to electronic, then it is good for them.

The merchants are looking to enhance speed and improve brand loyalty. The lack of acceptance by the customers are causing those benefits not to materialize. Worse yet, the few customers that are using the technology are causing the merchants to pay higher fees, so they actually hurt the business.

As far as the customers go, I personally don’t think we will see widespread adoption until NFC, or a competing standard, becomes commonplace. Since the carriers, device manufacturers and associations can’t get their act together on who is going to get paid in an NFC world, I’d personally like to see a bluetooth solution created (Thank you Apple and Google) that does an end-run around NFC.

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