Amex, Legislation, Mobile, Payments, Trends, Uncategorized

American Express Allowed To Continue Charging Higher Swipe Fees; Merchant Fees Vs Consumer Balance Interest Cited

American Express’ model makes money from charging merchant fees on a per purchase basis (swipe fees), whereas MasterCard/Visa charges consumers interest on balances.  Due to the discrepancy in business models, it’s argued that American Express can charge a higher swipe fee than its competitors, though Premium MasterCard and Visa also charge higher fees.

How they voted:

AmexSwipeFeesVoting

The argument of the National Retail Federation is that higher swipe fees ultimately get passed down to the consumer and by pushing swipe fees to the merchant, consumers are unable to make informed purchase decision.  Whether this is true or not, remains to be seen.  Personally, I have yet to be charged more for Amex purchases but I’m aware the inequity existed before this cash and try to use cash as much as possible for small businesses.

In the advent of increased mobile purchases using a linked credit card, will swipe fees effect consumer pricing?

Supreme Court Favors Amex Higher Fees – Investors.com

Amazon, Ecommerce, In-Store, NYTimes, Payments, Uncategorized

Supreme Court Decides on South Dakota Vs. Wayfair And Online Retailers Must Charge State Taxes

The 5-4 decision, in South Dakota v. Wayfair Inc., was a victory for brick-and-mortar businesses that have long complained they are put at a disadvantage by having to charge sales taxes while many online competitors do not. And it was also a victory for states that have said that they are missing out on tens of billions of dollars in annual revenue.

How they voted:

OnlineTaxesVoting

For most large online retailers (including Amazon — the country’s largest), the decision will have little impact, since they’ve been voluntarily paying state sales taxes for years. Instead, the burden will be on earlier-stage companies that don’t have the same sort of scale and which will be facing more operational costs as a result.

Supreme Court Sales Taxes On Internet Merchants – NYTimes

Apps, Google, Mobile, Payments, Starbucks, Uncategorized

Starbucks App Leads In Mobile Payments

Coffee consumption is, for many people, an everyday activity so it’s a no-brainer that Starbucks Order and Pay App leads in mobile payments.

“The Starbucks app is one of the bigger success stories in mobile proximity payments.  It has gained traction thanks to its ability to tie payments to its loyalty rewards program. For users of the app, the value of paying with their smartphone is clear and simple—you can save time and money at the register, all while racking up rewards and special offers.”  Cindy Liu, eMarketer analyst

Emarketer Apple Pay

Starbucks App Leads Mobile Payment Competitors – eMarketer