Paywave: the technology where you wave your credit card or eftpos paywave enabled card in front of an eftpos machine to pay for a purchase. Seems like a simple and straightforward invention, but is it a spend money devil in disguise?
At first people embraced the new technology and started to wave cards around everywhere spending money in a flash. When my business had not received a new paywave enabled machine customers were not impressed with using the old method, which only took a couple of extra seconds anyway. They desperately wanted to use paywave for one reason or another.
When the machine did arrive it was like someone had invented white sliced bread all over again. The customers thought the Paywave technology was fantastic and probably did spend more money, but I hated it from day one.
Easy Guilt Free Spending With Paywave Technology
Yes it was guilt free spending as you didn’t have to open your wallet and get your hard earned cash out or even sign for your purchase. A mere wave of a card over the eftpos terminal would pay for your purchase without hassle or effort. People already spent more money after the invention of credit cards, now paywave just made that process a whole lot easier. Wave wave wave, spend spend spend. It was that easy.
You Must Be Cool If You Use Paywave
What could be easier than swiping a card over a machine to pay for something? It looks so cool on the TV ads. The music plays, the purchasing in a busy cafe runs smoothly, that is until an uncool person tries to pay for his goods with cash. The music stops, the flow of business stops, everyone looks at him like he is an absolute idiot. Make sure you watch the video below.
How cool do those people look all in a line waving their cards to pay? Now did you notice the guy who pays cash. I can’t believe we watch this kind of ad and don’t notice these details.
Now why do you think they promoted paywave like this? Well if you’re the idiot who pays cash, the bank doesn’t get to charge any fees.
Why didn’t they make a TV commercial showing how a thief can use your card up to 10 times in one day with all purchases just under $100 to use paywave. No pin number needed, no signature, nothing.
Sneaky Paywave Fees For Merchants
After enabling Paywave in my business I noticed my monthly merchant fees had increased. I thought maybe we had a busy month, but that was not the case.
Sneaky merchant fees. So I decided not to allow paywave in my business.
When I stopped using paywave in my business, I noticed that the people that used this payment method actually had savings accounts and not real credit accounts. Therefore my business was getting charged credit card fees and not the flat rate that a savings account incurs. A sneaky and unnecessary fee for me. Please note: It is only when you actually stop using paywave and actually ask the customers cheque, savings or credit, do you notice this amazing revelation, they actually DO HAVE SAVINGS ACCOUNTS.
For example if a customer bought $80 worth of petrol, fees for a savings account are only 19 cents compared to 80 cents to $1.00 for credit purchases. The fess are even larger if a premium credit card is attached to their savings card.
Why Banks Love The Paywave Technology
- The banks want you to spend money faster and without too much effort.
- The easier it is to swipe your card and spend money, the less guilt you have.
- The banks get more fees from the actual transactions as paywave is counted the same as using a credit card. Smart on their behalf.
- Credit card spending could easily increase for some people as this method takes the hassle from spending.
- Banks are in a win win situation. The consumer spends more and the merchant pays more fees. This is why they can risk credit card theft via paywave.
- Banks think you’re an idiot and waste other people’s time if you use cash.
I personally feel as if I have been tricked into this paywave technology as it doesn’t benefit the consumer or the merchant, but only the banks. Sure you can wave your card over a terminal to pay for a purchase faster but so can someone who has stolen your card.
Did you watch the video advertisement above? Are you using the Paywave Technology to please others and stay in the cool line?