WebProNews

Tag: credit cards

  • Google Wallet Ditching Prepaid Card Option

    For a while now, Google has been bribing people into installing Google Wallet on their smartphones, giving out a free $10 to some who activate the app. Now, it seems customers might want to go ahead and spend that money quickly.

    Google announced today that it will be ending the Google Prepaid Card within the Google Wallet app. The company stated that the reason for the change is that customers can now add any credit or debit card to Google Wallet.

    Starting on September 17, users will no longer be able to add funds to the prepaid card or add new prepaid cards to the app. In addition, resetting the Wallet app will cause the prepaid card to be removed. On October 17, the prepaid card will disappear from Wallet and users will not be able to spend any money they had stored on it. Google has also changed the terms and conditions for the prepaid card. Where a $2 fee was applied monthly after 180 days of inactivity, now that time period has shrunk to 30 days.

    Users who don’t spend their prepaid card balance by the cut-off date, or who are unaware of the impending deactivation can receive refunds. Google states that it will add information on how to receive a refund to this page on October 17. In the meantime, Google encourages those whose prepaid card disappears after an app reset to contact Money Network, the servicer of Google Prepaid Cards, to receive a refund.

  • Mobile Payments Could Become the Primary Method of Doing Business by 2020

    We reported earlier that cash and coins were being used and accepted less in Sweden. The shift to make cash money a thing of the past in the country has sparked controversy and impacted its people tremendously. Some people feel safer because crime has visibly decreased in the region while the rural elderly find it increasingly more difficult to make business transactions and learn how to use technology.

    A new Pew study predicts that mobile payments may replace cash and credit cards by 2020. Tech experts also believe “credit cards and cash will survive for use by some types of consumers and because of security concerns and a desire for anonymity.”

    Anonymity was another issue raised by Swedes. The problem with a cash and credit card-free economy is that there is a lack of privacy; all transactions leave a paper trail. This could be especially problematic for those who wish to donate to organizations anonymously or purchase intimate products. The solution on this end would be to offer other ways to pay for services that would protect consumer privacy.

    Some 65% of those surveyed for the Pew study agreed with the statement: “By 2020, most people will have embraced and fully adopted the use of smart-device swiping for purchases they make, nearly eliminating the need for cash or credit cards. People will come to trust and rely on personal hardware and software for handling monetary transactions over the Internet and in stores. Cash and credit cards will have mostly disappeared from many of the transactions that occur in advanced countries.”

    But other participants noticed flaws in America’s current system that complicate the shift: “Credit cards are already pretty convenient. I don’t think most consumers want to put their financial data at risk by connecting it directly to a communication device. Additionally, what’s the financial incentive for retailers to participate? They already hate paying credit card fees. Why would they pay to convert their entire revenue system again after just getting set up for credit cards?”

    The shift to digital transactions will inevitably lead to greater profits for banks and deincentivize owning a small business if current policies are not amended. This is because many business owners will face considerable overhead in transaction fees: Hanna Celik, whose family owns a newspaper kiosk in a Stockholm shopping mall, says the digital economy is all about banks seeking bigger earnings. Celik says he gets charged about 5 Swedish kronor ($0.80) for every credit card transaction, and a law passed by the Swedish Parliament prevents him from passing on that charge to consumers.

    Since the data from the study are based on a non-random sample, results are not projectable to any population other than that in the experiemnt. With that being said, the future of cash and credit cards remains uncertain.

  • Foursquare and American Express Launch Specials for Cardholders

    Back in March, just before SXSW, Foursquare announced a partnership with American Express that would see card users getting discounts, by checking in at stores, restaurants, etc. They began testing in Austin, where those who linked their AmEx and Foursquare accounts could spend at least $5 at a local merchant, and get a $5 savings applied to their monthly statement.

    “When we launched, the response was overwhelmingly positive. So, after SxSW, we sat down with American Express to plot the future,” writes Foursquare Director of Business Development Tristan Walker on the Foursquare blog. “Today, we’re happy to announce that the partnership is going national. Across the whole country, at select merchants, you can now check-in with foursquare, pay with your American Express card, and get big savings on your monthly statement.”

    “Our national launch with foursquare reflects our continued focus on digital innovation aimed at bringing value to cardmembers and merchants where they’re already engaged and focused,” says Ed Gilligan, Vice Chairman at American Express. “The success of our pilot just a few months ago proved that American Express’ digital capabilities and foursquare’s expanding application created something extremely powerful. We’re thrilled to take this partnership to the next level. For us, this is just the beginning.”

    “Partnering with American Express to offer Specials to their millions of cardmembers on a nationwide basis not only allows us to provide a completely seamless redemption experience to both users and merchants, it also enables merchants to really measure the success of their offline marketing efforts with foursquare,” said Foursquare CEO Dennis Crowley. “The load-to-card functionality of the Smart Offer APIs provides the millions of American Express merchants with an effortless way to serve up Specials to our more than 10 million users.”

    At SXSW, we interviewed Foursquare Director of Business Development Eric Friedman, who talked about the partnership a bit (while Crowley played an actual game of Foursquare in the background):

    @EricFriedman
    Eric Friedman    RT @AmericanExpress Amex and @foursquare go national! Sync, explore, save… GET STARTED NOW at http://aexp.co/ZU2 10 hours ago via TweetDeck · powered by @socialditto

    @naveen
    naveen    shock-and-awe week is back: @foursquare and @americanexpress teaming up for specials again, this time nationwide: http://t.co/bxDH9nJ 9 hours ago via web · powered by @socialditto

    @AmericanExpress
    American Express    Cardmembers nationwide can now sync their Amex cards w/ @foursquare to unlock exclusive specials! http://aexp.co/AgO 1 hour ago via Amex Publisher · powered by @socialditto

    Foursquare CEO Dennis Crowley retweeted this:

    @stanmichaelbash
    Stan Bashmashnikov    Welp, looks like I’ve made a decision for my secondary credit card! – “AMEX Teams With Foursquare” – http://t.co/kfAsujk cc: @dens @naveen 9 hours ago via web · powered by @socialditto

    To take advantage, simply link your accounts, check in at participating stores and tap “load to card” on the Special in Foursquare, and pay with your AmEx card. They’re kicking off the launch with stores H&M (where you can spend $75 and get $10 back) and Sports Authority (where you can spend $50 and get $20 back). On the Foursquare blog, they also talk about several New York restaurants who are already offering specials.

    Earlier this week, Foursquare announced that it’s surpassed 10 million users.

  • Square Gets Visa Backing

    Square Gets Visa Backing

    Square has received a new investment from Visa, which is the largest credit card company in the world. While the exact amount of the investment is unknown, it’s rumored to be in the millions.

    Square COO Keith Rabbois told the Wall Street Journal that the company will continue to “explore collaborative partnerships that might make sense,” that the two companies’ visions “align”. The journal reports:

    More than eight million U.S. businesses accept Visa and Mastercard, Rabois said. Square is trying to help the 27 million businesses and entrepreneurs that don’t accept credit cards because they haven’t qualified due to poor or no credit history, Rabois said.

    The investment comes at a very interesting time in Square’s existence. The company is certainly really starting to build steam, but as you may know, Square co-founder Jack Dorsey recently returned to day-to-day operations at Twitter, in addition to remaining in the CEO role at Square. The man has his hands full, no doubt. He’s essentially taken Evan Williams’ place at Twitter, and Square continues to grow its staff.

    @jack
    Jack Dorsey    There are now 117 people at @Square. Join us! It’s going to be a huge and exciting year: http://t.co/92EYBSE 3 hours ago via Twitter for iPad · powered by @socialditto

    Interestingly enough, Rabbois told the WSJ that he interacts with Dorsey the same amount that he did before Dorsey went back to Twitter. It doesn’t sound like the Twitter gig is putting too much of a strain on Square.

    The backing of Visa should alleviate any of the concerns out there about Square’s potential for success, and about security, for that matter. You may recall earlier this year when Square competitor Verifone blasted Square over a security issue. The claims ended up being blasted themselves, and essentially called out as being a back-handed competitive stroke.

    Now, you have to wonder if investments from other major credit card companies will follow.

  • Foursquare Partners with American Express

    Foursquare Partners with American Express

    Foursquare and American Express have entered into a partnership that will see card users getting discounts at stores, restaurants, etc. via Foursquare.

    WebProNews recently exchanged a few tweets with Foursquare CEO Dennis Crowley, following an article we posted questioning how Foursquare will continue to compete with Facebook and its Places service. You can see that exchange here. In a nutshell, he explained that Foursquare has different use cases, and that we should talk after SXSW, implying that multiple announcements were coming.

    Now, news of the American Express deal has come out via the Wall Street Journal. This may be the main thing Crowley was referring to as it should be a pretty big deal for Foursquare. The publication reports:

    Under the arrangement, AmEx customers can register their cards in the Foursquare system to get access to special offers from merchants who are also Foursquare participants. Customers who shop at those merchants with an AmEx card will receive credits and electronic notification that they have redeemed the offer. Merchants who participate in the program would potentially see more sales.

    The partners will pilot the service next week in Austin, Texas, at the South by Southwest Interactive Festival, a weeklong conference for technology start-ups. Sixty local merchants will honor the “spend $5, save $5” promotion.

    The two companies will reportedly expand the program into various cities.

    In addition, Foursquare mentions that Foursquare 3.0 is coming soon on the company’s SXSW page (as well as some parties, panels, and new badges). It will be interesting to see what comes with version 3.0 in terms of features that Facebook will have a hard time matching. I’m sure credit card partnerships aren’t out of the realm of possibility for the company whose valuation continues to increase.

  • Square Eliminates Transaction Fee, Calls it a Revolution

    Square, the mobile payments company co-founded by Twitter co-founder Jack Dorsey, just announced that it is removing a 15¢ transaction fee on credit card payments – a move that is sure to capture merchants’ attention. The company says:

    Now when you swipe a card with Square there is just one fee: 2.75%. What you see is what you pay.

    Square lets you accept credit cards quickly and easily, using what you already have in your pocket: your phone. When you want to know how much money you’ve made, you no longer have to wade through a complex maze of hidden costs and fees. Just simple multiplication and you know what will be in your bank account.

    Before dropping the fee, users had to pay both the 2.75% and the 15¢ fee. 

    Today @Square removed the 15¢ fee on credit card payments. Swipe every card, pay 2.75%. Simply revolutionary: http://j.mp/sq-pricingless than a minute ago via webSquare, Inc.
    Square

    Merchants don’t know how much they pay to accept credit cards (a lot). That cost is passed on to you, the payer. No more: http://j.mp/g5601Fless than a minute ago via Twitter for iPhoneJack Dorsey
    jack

    You know all those "under $10 cash only" signs you see? That’s because of the 15 to 30 cents merchants pay. No more: http://j.mp/g5601Fless than a minute ago via Twitter for iPhoneJack Dorsey
    jack

    @jack @square I am changing my frozen yogurt business over to Square + iPad because of the no fee change! Can’t wait to chuck my P.O.S. POS!less than a minute ago via webZoli
    zolihonig

  • Will You Be Paying Restaurant Checks with Google This Year?

    Google may launch a mobile payments service as early as this year, according to a report from Bloomberg BusinessWeek. This would be based upon NFC (near field communication) technology, which lets mobile device exchange data at close ranges. 

    Google CEO Eric Schmidt hinted at such a service in November, saying "You’ll be able to walk in a store and do commerce. You’d bump for everything and eventually replace credit cards." Now, BB cites "two people familiar with the plans" as saying the company is "considering building a payment and advertising service that would let users buy milk and bread by tapping or waving their mobile phones against a register at checkout," and that the service may debut this year. 

    Will Mobile Carriers Eliminate the Need for Credit Cards?Actually, it’s not just Google that is looking for inroads in this area. PayPal and Apple would also appear to be interested. In fact, the report suggests that PayPal is even open to partnering with companies like Google.

    A service could indeed debut this year from Google, but it seems unlikely that it would gain a great deal of traction so soon. As TechCrunch’s Erick Schonfeld notes, "A lot of things need to happen before it catches on. The chips first need to be embedded in lots of mobile phones (Google, Apple, and Nokia are working on that). But then on the flip side, merchants need to install NFC chip readers at their cash registers, which is an expensive proposition (a few hundred dollars worth of equipment per cash register)."

    The original report says, however, that Google is "ramping up efforts to seed merchants nationwide with NFC tags." The company has been handing out NFC kits, including window tags. 

    Should credit card companies be worried? 

    It was reported back in August that AT&T, Verizon, and T-Mobile were planning a "venture to displace credit and debit cards with smartphones". Meanwhile, companies like Visa and MasterCard were preparing their own potential PayPal competitors.

    If Google does release a mobile payments service, it will be interesting to see if it taps into the Google Checkout brand. 

  • Major Mobile Carriers Teaming Up to Eliminate Credit Cards?

    Will the mobile phone replace the credit card? It sounds a bit like science fiction, but it appears that mobile carriers are trying to make it a reality.

    Bloomberg reports that AT&T, Verizon, and T-Mobile USA are "planning a venture to displace credit and debit cards with smartphones". The companies would work with Discover Financial Services and Barclays Plc to test a system starting in Atlanta and three other unnamed U.S. cities.

    "The trial would be the carriers’ biggest effort to spur mobile payments in the U.S. and supplant more than 1 billion plastic cards in American wallets," say Peter Eichenbaum and Margaret Collins in Bloomberg’s collaborative report. "Smartphones have encroached on tasks ranging from Web browsing to street navigation and now may help the phone companies compete with San Francisco-based Visa and MasterCard, the world’s biggest payments networks."

    Will Mobile Carriers Eliminate the Need for Credit Cards?Even if the mobile carriers are successful in their venture, it will be a long time before the credit card is truly replaced. Smartphone usage is growing, but these devices are a long way off from being in everybody’s hands.

    Meanwhile, it’s not as if the credit card companies are standing still in a stagnant pool of their old world ways. Visa and Master Card have both made moves recently that indicate they are going after PayPal, which is currently a big player in the mobile payments space.

    MasterCard announced a developer initiative place MasterCard payment technology in mobile and online apps, while Visa launched its own PayPal competitor starting in Australia.

    Om Malik at GigaOm has a good article on the mobile payments industry. He points out that a venture from the mobile carriers may hurt mobile payments startups. 

    Would you like to replace your credit cards with your mobile phone? Share your thoughts.

  • PayPal Lets Apps Accept Credit Cards

    PayPal Lets Apps Accept Credit Cards

    PayPal has announced that it now accepts credit cards in apps. The company’s payments platform, PayPal X, now has a Guest Payments feature.

    "With this new feature, developers will now be able to accept credit card payments without requiring customers to open up a PayPal account," a spokesperson for the company tells WebProNews.

    PayPalGuest Payments is a product of PayPal’s Adaptive Payments API, and has been a heavily requested feature for users. PayPal says Guest Payments eliminates the complications merchants, developers, and startups face in accepting credit cards.

    "We’re aware that no matter how innovative the ideas are, our developers look to us to provide the features to make it all possible," says Naveed Anwar, senior director of PayPal’s Developer Network. " We’re thrilled to provide this new functionality to meet this need and look forward to seeing the ground-breaking apps our developer community will create with this."

    PayPal is starting to get some competition from the credit card companies themselves. Last month, MasterCard announced a new developer initiative, which would place MasterCard payment technology in mobile and online apps. This week, Visa launched new payments service called PayClick in Australia.

  • Are Credit Card Payments the Biggest Obstacle to Mobile Commerce?

    Retrevo has provided us with some results from a recent survey looking at consumer behavior with regard to making purchases using mobile phones. Based on these findings, it appears credit cards may be getting in the way.

    Key findings include:

    – Mobile shoppers seem to have doubled since February – In a February 2010 Retrevo Study, almost 10% of people indicated they had purchased something using their cell phone. Today, that number has doubled.

    – When asked if they had ever purchased something from a retailer using a cell phone, 20% Said yes, 27% said no, but that they would purchase something from their cell phone eventually, and 53% said no, and that they don’t ever plan to.

    – When asked what would make them more likely to purchase something from a retailer using their cell phone, 24% said, not having to provide their credit card info, 13% said if their credit card was stored with the retailer, and 16% said they’re comfortable making purchases from their mobile phones now.

    Retrevo Shares Results from Mobile Commerce Survey

    Andrew Eisner, Retrevo’s Director of Community and Content says, "Note to retailers: if you want more sales from mobile customers, make it easy for them to store their credit card info and while you’re at it, keep your eye on retailers like Amazon with innovations like PayPhrase or Mobile Payments Service that might take some of the friction out of online or mobile transactions."

    He also points out that apps are making everything easier, and that includes shopping. Retrevo found that about 42% of those who have shopped with their phones said they have used apps to make purchases.

    Do you require mobile users to enter credit card info with each sale? Tell us why.

  • PayPal Announces Some Pricing Changes

    PayPal Announces Some Pricing Changes

    Today, PayPal announced that it is making some changes to its user agreements and pricing. The changes are specifically related to refunds, chargebacks, and Amex payments.

    PayPal senior director of SMB Merchant Services Eddie Davis outlines the following changes:

    1. Refund Prices – Starting August 10, PayPal will retain the transaction fee (typically $.30) when a seller issues a refund (U.S. and Canada merchants).

    2. Chargeback Prices – Starting August 24, we’ll be increasing chargeback costs from $10 to the typical industry rate of $20 (U.S. merchants only, eBay merchants enrolled in the PayPal Preferred program are exempt).

    3. Eddie Davis of PayPalAmerican Express Card Acceptance – On July 13, PayPal and American Express will enter into a new card processing arrangement that requires merchants to establish a direct contractual relationship with American Express. You’ll need to accept a new agreement with American Express if you want to continue to accept American Express cards directly through Website Payments Pro and Virtual Terminal. PayPal will continue to service American Express transactions. As part of this new agreement, the fees we charge for American Express payments will change to be on par with their typical industry rates. You’ll also need to make sure that you comply with other terms in the agreement with American Express. As part of this new agreement, American Express pricing will change to be on par with their typical industry rates. You’ll also need to make sure that you comply with other terms in the agreement with American Express. This only applies to taking American Express credit cards directly. There’s no change if a consumer chooses to pay with PayPal, no matter how the account is funded.

    Davis notes that standard transaction fees for PayPal payments and direct credit card payments for Visa, MasterCard, and Discover will remain unchanged.

    More information on the changes can be found in "policy updates" when you log into your merchant account on PayPal.com.

  • Federal Reserve Launches Consumer Credit Card Site

    The Federal Reserve has launched a new website aimed at helping consumers better understand the new credit card protections that will go into effect on February 22.

    These rules ban a number of harmful practices and require more transparency in the disclosure of the terms and conditions of credit card accounts.

    The site summarizes the main points of the rules and explains how they will affect credit card users. Two interactive features will allow consumers to learn more about the terms and fees of credit card offers and about the new features of their monthly statements.
    Elizabeth-Duke
    "These online tools and resources will help consumers make well-informed decisions about their use of credit," said Federal Reserve Board Governor Elizabeth A. Duke.

    "We will update the site regularly to provide the most useful and current information."

    Information about recent changes in credit card rules is the main focus of the site, but basic facts about common credit card options, interest rates, and fees are also included. Consumers will find a glossary of common credit card terms for quick reference along with a list of federal credit protection laws providing a basic guide for those who want to learn more about their rights.

    The site also provides information about common credit card problems–such as lost or stolen cards–and links to resources for consumers who are experiencing problems with