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Visa, MasterCard, AmEx... Driver's Licenses?
from the no-cash dept
Credit-card processing fees continue to be a growing burden for retailers, particularly in low-margin operations like grocery stores and gas stations. This is fuelling a lot of interest in alternative payment systems that seek to cut out credit-card companies, though they face formidable competition in the form of the cards' ubiquity and convenience. One company is seeking to overcome that by turning people's driver's licenses into debit cards (via Payments News). Users link their bank account to their driver's license number, and make purchases at participating retailers using the license and a PIN code. The service is already being used by some gas stations, who are very happy with it since the company charges a flat 15 cents per transaction, rather than a variable percentage, as credit cards do. The main sticking point is, of course, security -- with plenty of people hesitant to start using their drivers' license for payments, and authorities saying they don't endorse the idea. This may not be a perfect solution, but it does indicate the sort of system that will be needed to meet the demand for a payment alternative to credit cards. Since this change will be retailer-driven -- as the costs of payment processing are generally invisible to consumers -- any viable solution will have to offer benefits to consumers that are at least equal to those offered by existing payment mechanisms.
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Microcurrencies
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This way illegal aliens can have full financial access.
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But seriously...
I was in a bar in Las Vegas over the weekend and wanted to run a tab, he said "we only accept cash". I looked at him with that "did we move to a 3rd world country?" look. Needless to say that bar earned much less that evening (from me) than they might otherwise have.
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We do, but most people (customers) do not want to use them because they get charged exorbitant ATM fees by gas stations/retailers when they use them. Since most debit cards in the US double as Check cards customers tend to use check cards and run them at the retailer as credit rather than debit. When run as credit, the card behaves as a debit card to the customer, but the retailer gets charged a typical credit card fee.
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Solution in need of a problem
The only benefit is carrying one DL/debit card instead of two cards. This is far outweighed by security and privacy concerns, not to mention the roll of red tape required to implement it.
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Solution in need of a problem
The only benefit is carrying one DL/debit card instead of two cards. This is far outweighed by security and privacy concerns, not to mention the roll of red tape required to implement it.
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Solution in need of a problem
The only benefit is carrying one DL/debit card instead of two cards. This is far outweighed by security and privacy concerns, not to mention the roll of red tape required to implement it.
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Re: But seriously...
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Default choice at checkout
Credit card companies typically charge more for credit transactions than for debit card tranactions. So the machines are force feeding you to go down the debit path....
My two cents.
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Pay by Touch!
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Anything that sticks to the CC companies
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See, my bank, Citizens, charges me $2 every time I do that, cuz it counts it as a foeign ATM. So it really, really, pisses me off.
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If you can't discipline yourself to do that, then stop blaming the cc companies and just pay cash. Done. I'll admit the cc companies have some reprehensible behaviors, but as far as I'm aware, if you pay off the balance entirely each month you'll never be exposed to that sort of thing. And, it will help build/rebuild your credit for a car or house down the road.
For those suggesting the use of debit cards, thats a huge, huge financial risk on your part since its tied directly to your money. With a cc you are protected usually with ZERO liability, and the merchant is difficult you can even refute the charge.
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from a retailer POV
the credit card company are just getting a cut at every single step of the way. also voiding and giving a customer credit you get dinged a charge.
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dl as debit cards
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Its one thing to have $5K on your credit card statement (that you have not paid yet) but its another when you have $5K removed from your account.
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Re: debit cards
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octopus card
They have no processing fee, and actually enable to cut several costs as they leverage and scale on technology built for the transport system....
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Driver's License as a debit Card
The ACH system is the same system used for collection of Mortgages, paying utility bills, and by the Card Association to clear payments between Banks. This is a Free Market attempt to mitigate the growing costs associated with payment acceptance for Merchants. See www.unfaircreditcardfees.com. Merchants offer Consumers a reward for using their Driver's License instead of a Credit or Bank issued Debit card. And they take their cash flow back from Visa and MasterCard.
This is not Big Brother at work. As it is voluntary on the part of Consumers. It can also be tied via a pin to multiple accounts.
Randall Shake
CEO
ACH PAY LLC
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who accepts
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