MCX Considers NFC, Retailers Won’t Be Fined for Accepting Apple Pay

MCX CEO Dekkers Davidson held a virtual press conference with the press yesterday to address questions and concerns over CurrentC, its upcoming mobile payments solution.

Davidson noted MCX is open to other forms of tech beyond QR codes, but if need be they will move to NFC, saying “We’re agnostic about technology. We started with QR code-based technology that allows us to go to market broadly. If we need, we can pivot to NFC.”

MCX is already working with retailers to implement “other technology that goes beyond QR codes”, such as Bluetooth Low-Energy implementations.

Addressing the New York Times piece which claimed members could be fined if they were to accept rival mobile payment services such as Apple Pay, Davidson said the information was false, stating “it’s simply not true, there are no fines,” according to TechCrunch.

As for the recent hack that resulted in some stolen emails, the CEO noted “the hack reminds us that there are people that are motivated to steal information. Our systems have been attacked repeatedly in the last 7 to 8 days…clearly any type of attack or incident is one you have to learn from to get stronger –  and we will get stronger. We’re challenging the status quo…when you poke at a large ecosystem like that, you should expect attacks.”

When asked about CurrentC being available alongside Apple Pay and other mobile payments, he said “In the future, that could be entirely possible…there will need to be two to three strong players in the ecosystem. One won’t simply build the market.”

Despite MCX’s CEO answering these questions, the bottom line is the large group of retailers is looking for a way to bypass fees charged by credit card companies currently eating away at their bottom line.

According to some estimates, US retailers paid $48 billion in fees to credit card companies in 2013. CurrentC would allow retailers to recoup some of those fees and many seem willing to take their chances with the QR-code based payments system tied to customer bank accounts.

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  • Al

    “… the large group of retailers is looking for a way to bypass fees
    charged by credit card companies currently eating away at their bottom

    Holy crap, Gary… no…no…NO. Quit believing hysteria you’ve gleaned elsewhere and do some friggin’ research before you write an article. I would have thought you would have learned from yesterday when I tried to explain to you what is REALLY going on.

    I’ve already explained this in past posts, but here it is, one more time for you…

    Credit card fees are NOT, I repeat… NOT… costing retailers anything. The fees are built into the prices of the products. Consumers pay the fees. So, for large retailers, when the bill comes for an average check-out of, say, $50… approx. $1 is built into all the items we have bought (typically pennies per item) and goes to the credit card company. This is NOT a big friggin’ deal. It’s the cost of convenience. It’s the cost of borrowing money. It’s the cost of not having to carry around cash and the insurance that it can’t be stolen.

    And do you honestly think that MCX isn’t going to take a cut? Seriously?!

    So, absolutely… positively… and without question… retailers are NOT looking to bypass credit card fees with the CurrentC system. They are looking for data, first and foremost.Exceedingly VALUABLE data.

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  • bspence88

    I own a chain of retail stores and I would love to bypass credit card fees. I wouldn’t say I raise my prices to accommodate credit card fees but if I can improve my profit margin by not having to pay those fees, I’m on board. Al, you sure know it all don’t ya?

  • Seriously? Why the link to a customer’s bank account then? For real

  • Al

    I would hardly call selling ZAGG products in those retail carts a “chain of retail stores”.

  • Al

    I don’t understand the relevance of your comment.

  • Real commentary from an actual business owner!

  • bspence88

    I own 9 permanent kiosks. They aren’t mall carts. I would consider that a chain.

  • Al

    If he doesn’t account for the cost of credit cards in his retail prices then… well… (I’ll hold off on the insult)

  • Al

    … ok

  • bspence88

    Classic Al. Always has something to complain about. If you don’t like Gary’s articles, why do you even read them? You don’t have to troll every single post. Every time I see that Simpsons character I know I’m about to read something from negative. Anyways,
    I’m not going to argue with you. All I know is if retailers can save 1.5% to 3% in profit from credit card fees they are obviously going to do it. And don’t expect them to lower prices since they are saving on the fees. It’s common sense.

  • Al

    Look who’s talking about trolling. You tried to discredit me by CLAIMING you owned a “chain of retail stores”… like you were some hot shot. And yes, you are just operate out of a few square feet of space. Good on you for creating your own business, but don’t make yourself out to be the owner of a bunch of actual “stores” just to discredit me.

    If you don’t want to pay the service fee, then don’t accept credit cards. If you don’t want to sacrifice the business that you would lose from not taking credit cards, then shut the hell up.

    I made a very clear statement in a discussion that was based on fact. I’m not some friggin’ lemming that just bends over and takes it in the a$$ from people who make false statements and declare them to be true.

    If you don’t like reading the truth, don’t read what I posts. If you don’t like people who question others, don’t read what I posts. If you like to be lead around by the nose by incompetent people, don’t read what I posts. If you prefer to be misinformed and stay huddled in the dark, then don’t read my posts.

  • bspence88

    Claiming? Hot shot? Truth? I don’t even need to defend myself. Your posts speak for themselves.

  • Al

    They do indeed.

  • Al

    Maybe I should tell you how to research. Here’s a hint… Go to the source.

    Show me where having no fees is highlighted as a feature of CurrentC. Heck… show me where they have even briefly mentioned the absence of fees as a benefit of using CurrentC.

  • PaulP

    Your argument doesn’t make sense. If everybody only used credit cards or they agreed to remove the built in fee when not using a credit card, your argument would be valid. That’s not the case. Whether I choose to use cash or credit, I’m paying the same price for the product. The retailer puts more in their pocket if I pay cash.

  • Al

    I didn’t want to elaborate too much, as the sentiment wouldn’t change. But to address your thoughts…

    A retailer will do one of two things…
    1. They will account for the entire cost of service fees in their retail price (in which case, yes, they will pocket the additional “bonus” profit), or…
    2. They will calculate the average cost based on historical trends related to percentage of credit card transactions. In other word, if a merchant pays 2% but only half of their transactions are credit cards, then the cost of items will account for 1% increase to cover service fees.

    10-20 years ago, I did the second, because my percentage of credit card transactions was about 30%. Today, I do the first, as my credit card transactions are now about 85%.

    Either way, the sentiment remains… The retailer isn’t out of pocket for the service fees.

  • Al

    Show me where the notion of saving the credit card fees is expressed by MCX. It isn’t. That’s my point. It’s a valid point. Gary’s declaration to the contrary is clearly wrong. Heck… it’s a lie.

    Do you not like dealing with the truth?

  • PaulP

    I think we’re are looking at this from two different ends. You’re saying the retailer isn’t out of pocket. I agree, because the fees are built into the costs. Today, you’re accounting for 85% of people using credit cards, which means 15% of people are paying more for their products than they should be ie “Bonus Profit”. But, If people stop using credit cards, those prices will not change, and therefore the increased “Bonus Profit” adds to the retailers bottom line. So, while the fees are maybe not “eating away” at their bottom line, eliminating those fees would give their bottom line a boost. Could that margin be erased over time with healthy competition, sure.

  • Obviously they aren’t going to mention that as a feature. It’s well known that is their plan.

    BTW: is it Al or Ai (AI)?

  • Al

    Why wouldn’t they mention it as a feature (if it were one)? I don’t see the rationale as to why the “obviously” wouldn’t.

    As I said before, you don’t seriously believe MCX isn’t going to take a cut, do you? There will still be fees of some sort.

    You can’t declare it’s “well known” by going by uninformed assumptions made by others.

  • Al


  • Walmart is suing Visa over allegations it fixes fees the latter charges retailers. It’s well known they want to avoid credit card fees, sillyhead.

  • Al

    The article has no point of reference to confirm its assumption. This is the same publication that falsely reaffirmed that MCX would fine retailers for accepting ApplePay. Therefore… No credibility.

    Walmart appears to just want favoritism (lower rates than others), so they can shave off a couple of extra pennies.