Apple reaping massive illegal profits from Apple Pay fees on card issuers, lawsuit claims

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  • Reply 21 of 26
    StrangeDaysStrangeDays Posts: 12,259member
    As I recall Apple charges card issuers because AP cuts back on their fraud exposure, due to device biometrics. It saves them money. Now they want the benefit without the cost. 
    maximarawatto_cobraFileMakerFeller
  • Reply 22 of 26
    jimh2jimh2 Posts: 447member
    As I recall Apple charges card issuers because AP cuts back on their fraud exposure, due to device biometrics. It saves them money. Now they want the benefit without the cost. 
    That is always the case. Just like the App Store. 
    Apple would have a hard time starting its own credit card network. The wagons start circling when a competitor tries to improve a long standing business model. Walmart has made moves and strategic hires with a possible goal opening their own bank. The banks are in full defense mode as they do not want any competition. Amazon could be next or could beat Walmart to opening a bank. These companies will forever change banking. 
    watto_cobra
  • Reply 23 of 26
    davidwdavidw Posts: 1,691member
    entropys said:

    Once upon a time there was a little red hen who scratched about the barnyard until she uncovered some grains of wheat. She called her neighbors and said 'If we plant this wheat, we shall have bread to eat. Who will help me plant it?'

    "Not I, " said the cow.

    "Not I," said the duck.

    "Not I," said the pig.

    "Not I," said the goose.

    "Then I will," said the little red hen. And she did. The wheat grew tall and ripened into golden grain. "Who will help me reap my wheat?" asked the little red hen.

    "Not I," said the duck.

    "Out of my classification," said the pig.

    "I'd lose my seniority," said the cow.

    "I'd lose my unemployment compensation," said the goose.

    "Then I will," said the little red hen, and she did. At last the time came to bake the bread. "Who will help me bake bread?" asked the little red hen.

     "That would be overtime for me," said the cow.

     "I'd lose my welfare benefits," said the duck.

    “I'm a dropout and never learned how," said the pig.

     "If I'm to be the only helper, that's discrimination," said the goose.

     "Then I will," said the little red hen.

     She baked five loaves and held them up for the neighbors to see.

    They all wanted some and, in fact, demanded a share. But the little red hen said, "No, I can eat the five loaves myself."

     “Excess profits," cried the cow.

     “Capitalist leech," screamed the duck.

     "I demand equal rights," yelled the goose.

     And the pig just grunted.

     And they painted "unfair" picket signs and marched round and around the little red hen shouting obscenities.

     

    When the government agent came, he said to the little red hen, "You must not be greedy."

     “But I earned the bread," said the little red hen.

     "Exactly," said the agent. "That's the wonderful free enterprise system. Anyone in the barnyard can earn as much as he wants. But under our modern government regulations productive workers must divide their products with the idle."

     And they lived happily ever after, including the little red hen, who smiled and clucked, "I am grateful, I am grateful." But her neighbors wondered why she never again baked any more bread.

    Along the same line of a simple analogy.

    Every week, the same 10 men gets together for dinner at their favorite restaurant. They always order the same banquet and the bill comes to $100, every week. They all agree to split the bill the same way income taxes are paid, based on their income.

    So

    The first four making the least would pay nothing 

    The fifth would only pay $1

    The sixth would only pay $3

    The seventh would pay $7

    The eighth would pay $12 

    The ninth would pay $18.

    The 10th man, the one making the most among them, would pay $59. 

    Although the 10 men didn't share the bill equally, they were all content with the arrangement – then one week, restaurant owner threw them a curve.

    The owner said, "Since you've all been such good customers, I'm going to reduce the cost of your banquet by $20. I'm going to charge you just $80 total." The 10 men looked at each other and wondered how they were going to handle the $20 refund.

    The first four men were unaffected because they didn't have to pay for their meals anyway. They'll still get to eat for free. 

    The big question is how to divide the $20 refund among the six that paid for their meals, that's fair for each of them. If they divide the $20 by six, each would get $3.33 back. But that would mean the fifth and sixth men would end up being paid to eat their meals. So the restaurant owner suggested that it would be fair to reduce each person's bill by roughly the same 20 percent saving.

    The results? 

    The first four making the least, still ate for free.

    The fifth man now also ate for, free instead of paying $1. 

    The sixth paid $2 instead of $3.

    The seventh paid $5 instead of $7

    The eighth paid $9 instead of $12

    The ninth paid $14 instead of $18

    And the 10th man paid $50 instead of $59.

    But once outside the restaurant, the men began to compare their savings. 

    "I only got one dollar out of the $20," said the sixth man and he got $9!", while pointing at the tenth man. 

    "Yeah, that's right," exclaimed the fifth man. "I only saved a dollar, too! It's not fair that he got nine times more than me!" 

    "That's true," shouted the seventh man. "Why should he get back $9 when I only got $2? The rich get all the breaks!" 

    "Wait a minute," yelled the first four men in unison. "We didn't get anything at all. The system exploits the poor!"

    The nine outraged men surrounded the 10th and assaulted him. So the next week, he didn't show up for dinner and the nine sat down and ordered the same banquet dinner without him. But when it came time to pay the bill, they were $50 short.


    FileMakerFeller
  • Reply 24 of 26
    I am sure Visa can afford the minimal charges.  I’m in the UK paying 29.9% on my Visa card with a base rate of a 1.25%.  I have never managed to get the rate reduced, there is always another six months to wait.  I have been nowhere near my credit limit for several years and have always paid more than the minimum. The account has been clear for some months.  I also have a very high credit score.  Visa doesn’t reduce my rate because historically I have not been able to clear it, so I was just captive.  Banks charge business more for debits and credits on business accounts which is why personal current accounts are free.  I only use Apple products because they are so secure.
    I don't know how that doesn't classify as usury.
  • Reply 25 of 26
    The lawsuit is about Apple not allowing competitive products access to the NFC chip on iPhones. The harmed parties are competitors like banks, but also traditional wallet providers like PayPal, Google pay, Venmo, Samsung Pay etc. Apple is accused of using their dominant position in mobile phone hardware/OS to squash competition and therefore innovation in mobile payments. 
  • Reply 26 of 26
    crowleycrowley Posts: 10,453member
    I am sure Visa can afford the minimal charges.  I’m in the UK paying 29.9% on my Visa card with a base rate of a 1.25%.  I have never managed to get the rate reduced, there is always another six months to wait.  I have been nowhere near my credit limit for several years and have always paid more than the minimum. The account has been clear for some months.  I also have a very high credit score.  Visa doesn’t reduce my rate because historically I have not been able to clear it, so I was just captive.  Banks charge business more for debits and credits on business accounts which is why personal current accounts are free.  I only use Apple products because they are so secure.
    I don't know how that doesn't classify as usury.
    Because there hasn't been any such classification or general usury law in the UK for a long time, and recent governments have been very reticent to bring them back and interfere in any aspect of finance.  Even the payday loan explosion was only reluctantly regulated after the media caught fire of it.
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