[NewsPoster]

CurrentC governing company Merchant Customer Exchange (MCX) held a conference call a bit earlier today. The company's lead executives took turns defending the company against some claims related to fines for merchants abandoning CurrentC, and also tried to explain away the email data breach it had suffered.

MCX CEO Dekkers Davidson and COO Scott Rankin first addressed the reports from merchants about fines and penalties if they choose to accept Apple Pay. The pair declared that merchants would not be penalized if they accepted Apple Pay, and are also legally allowed to leave the group, with nothing due because of the departure. Electronista has learned that some companies believe this to be contrary to contracts that they agreed to during the formation of the group, and they are "reviewing the originating documents to reconcile today's statements."

Turning to Apple Pay and Google Wallet shutdowns at Rite Aid and CVS, Davidson claimed that the retailers were more familiar with patronage needs, and were making choices that were best for all concerned. Both MCX executives believe that the three systems will operate side-by-side in the future, and that the entire market needs multiple players for security and robustness.

The executives noted that CurrentC is under nearly constant assault by Internet miscreants, and assured users that the email breach had no effect on the app or the systems of CurrentC itself, other than the data loss. The executives still feel despite the email thefts, that the cloud is the safest place for the transaction data. Davidson blamed the attacks on the company were retribution for "challenging the status quo," apparently referring to Apple Pay's recent launch, and Google Wallet which is only now starting to gain traction.

CurrentC's technology will likely launch next year, and compete with Apple Pay and Google Wallet with the support of a number of major retailers including Target, WalMart, Best Buy, CVS, and Riteaid. The company's purchase method will initially use a QR code-based scheme and apparently implementing near-field communication in the future. The technology will also track users' purchase histories and trends. It will likely require entering bank account and routing numbers, whereas Apple Pay and Google Wallet both require credit or debit card numbers.

[msuper69]

What load of BS! CurrentC is already a big FAIL!

[DiabloConQueso]

"Challenging the status quo?"

Sorry, but Apple Pay is the one challenging the status quo -- status quo being the broad and widespread collection of customer information and purchasing patterns for the sole reason of targeted advertising.

CurrentC *is* the status quo -- and is quite obviously a system directed at helping companies increase their revenue at the expense of consumer privacy. We've already got several systems like that, and it's nothing new.

[besson3c]

That is not true.

Credit card companies are more likely to profile than your bank.

[null_pointer]

"... and assured users that the email breach had no effect ... other than the data loss."

Well, I feel better already.

[climacs]

Wow. Just, wow.

[climacs]

MCX CEO Dekkers Davidson and COO Scott Rankin - Baghdad Bob #1 and Baghdad Bob #2.

[Stuke]

Watch as one of these two gentlemen try to graciously depart their role and association with MCX in the coming 4-6 weeks...just watch. One will bail before the MCX terminals go live in retails stores...know in fact that their data and software handling system is not the best solution for the customer.

[blshaw]

I feel much more comfortable now. Sign me up!

[stash99]

Now that CVS, Rite Aid, etc. are "off the hook" for fines, etc (if you can believe these guys), let's see if they do the right thing and reactivate Apple Pay.

[besson3c]

Originally Posted by stash99 

Now that CVS, Rite Aid, etc. are "off the hook" for fines, etc (if you can believe these guys), let's see if they do the right thing and reactivate Apple Pay.

Why is reactivating Apple Pay the "right thing"? You sound like this is some sort of moral imperative. How do you know that it is right? The customer experience of using Apple Pay seems to be great, but there is *much more* that needs to be evaluated.

[nouser]

It's the right thing if they wish to retain customers. I moved my business from CVS after I found they had gone out of their way to disable my preferred purchase method. One day it worked the next it did not. I shop where I find it most convenient and where it feels like the they value my continued business and my security.

I doubt I am alone in making this choice. I suspect CVS has already driven some small number of customers to their competition. This is the wrong thing to do for the employees and stockholders of the CVS, a business that is always striving to gain customers in a highly competitive market.

So I left and won't be returning to a CVS anytime soon. With it, I've taken a couple thousand dollars of business a year. Multiply this by possibly hundreds or thousands of customers and it adds up to a real negative for CVS, its employees and its stockholders.

Upon reflection of my move, I've discovered that I have saved some money. The purchases I was making at CVS were in fact, more costly than the establishment I have now chosen. So maybe I should thank CVS for making the decision to block my Pay.

[climacs]

nouser, you might want to check out Costco's pharmacy if you have a Costco near you. See the link pasted below. You do not need to be a member to use it. Walgreens and CVS are some of the most expensive places to get your scrip filled. http://consumerreports.org/cro/magazine/2013/05/same-generic-drug-many-prices/index.htm

[besson3c]

Originally Posted by nouser 

It's the right thing if they wish to retain customers. I moved my business from CVS after I found they had gone out of their way to disable my preferred purchase method. One day it worked the next it did not. I shop where I find it most convenient and where it feels like the they value my continued business and my security.

With all due respect and without knowing anything about your tech pedigree, customers have *no idea* what they need to be retained, because they don't understand these security issues. It is far from a given that Apple Pay is the best way to retain you, because your feelings will surely change if it is ever breached.

So maybe I should thank CVS for making the decision to block my Pay.

I don't understand these attitudes at all. Why are people so trusting of Apple Pay at this point, to the point where they are so seduced by the great customer experience into making Apple Pay support some sort of litmus test?

The Apple Pay security model is still tied to personal identities and credit cards. It is transitional. In x number of years this will not continue to be the way we do things. We may very well continue to have some line of credit, but it won't be tied to us personally the way it is now where people are able to tie our credit cards to us.

[sourkraut105]

I agree with nouser, completely. I'm a stockholder in CVS and called customer "dis"service to complain. I asked for an explanation and the Cust Ser rep, after "drinking the cool aid", told me that there is nothing she could do and it is a company decision. I asked to have someone call me with an explanation, and I have been waiting 3 days (today is beginning of day 4). CVS clearly is not offering good service and is not acting in the best interest of the customer.

The MCX process involves me turning over a lot of personal information such as Soc Sec #, Date of Birth, and my checking account number (because they don't want me to use my credit card so they avoid fees). No way Jose!!! I use a credit card be cause I want to protect my bank account. I've already had a bad experience with someone getting debit card number and using it. Musch easier when my credit card was compromised.

If CVS wants to be a good customer oriented company, then they should prove it. Re-activate NFC and let customers use it if they choose to do so. MCX and NFC can easily co-exist and then let the customer choose which one they prefer. As for me, I trust Apple more that MCX (MCX does not give me confidence in their security in light of their recent data breach).

[sacrums1]

I think Apple Pay is more secure than just using the credit card, is it not?

[besson3c]

Originally Posted by sacrums1 

I think Apple Pay is more secure than just using the credit card, is it not?

Absolutely, how could it not be?

[climacs]

Yes it is far more secure than using your credit card. The merchant never gets your CC #. Nobody handles your credit card. Every time you use your CC at a restaurant, you are putting yourself at risk and it does in fact happen that now and then there are crooked wait staff who steal your number when they swipe the card in the back before bringing it back to you.

CurrentC fails on so many levels. It is nowhere near as convenient as Apple Pay. It is nowhere near as secure. It demands far more of your most precious data than Apple Pay. There are a few benefits for consumers but mainly it's all about the merchants and their desire to rid themselves of credit card processing fees.

[besson3c]

Originally Posted by climacs 

Yes it is far more secure than using your credit card. The merchant never gets your CC #. Nobody handles your credit card. Every time you use your CC at a restaurant, you are putting yourself at risk and it does in fact happen that now and then there are crooked wait staff who steal your number when they swipe the card in the back before bringing it back to you.

CurrentC fails on so many levels. It is nowhere near as convenient as Apple Pay. It is nowhere near as secure. It demands far more of your most precious data than Apple Pay. There are a few benefits for consumers but mainly it's all about the merchants and their desire to rid themselves of credit card processing fees.

How do you know it is "nowhere near as secure"? What do you base this statement on?

[climacs]

"How do you know it is "nowhere near as secure"? "

CurrentC wants your social security number and your bank's routing number and your bank account number. Regardless of how securely or insecurely that information is stored, not giving that information out is always going to be more secure than giving it out. Secondly, they are storing that information in 'the cloud'. As recent events involving not only CurrentC but also Target and Home Depot (among others) should have amply demonstrated, it is a complete act of trust on the consumer's part that this information is encrypted and stored securely. CurrentC can be used on non-TouchID smartphones. If you lose your phone and have an insecure password or it ends up in the hands of a clever person, your account can be emptied in no time. On the other hand, only you can authorize an Apple Pay transaction with an iOS device using TouchID. Finally, CurrentC is asking to have access to your checking account. You are assuming 100% liability for fraud; no bank is required to compensate you for such losses due to fraud. On the other hand, Apple Pay only uses a linked credit card for transactions. Your liability is limited to $50 for CC fraud and in most if not all cases, the CC company will waive even that $50 charge. I hope that answers your questions.

[climacs]

oh and giving out your SSN, right there that should be a showstopper. As another commenter stated, if I'm giving you my SSN then you'd best tell me what's my hire date and what is your salary offer and benefits package.

[sourkraut105]

I follow Steve Gibson on his podcast Security Now. He thinks Apple Pay is very secure. More so than CurrentC. I'll defer to his expertise. And beside, MCX is not building a secure payment system, they are building a data collection system. I want my privacy. I will not give up my Bank account, my Soc Sec number, my DOB or any other personal financial information to any non financial merchant when I can achieve a secure payment transaction without doing so. MCX can go to h...! So there!

[besson3c]

Originally Posted by climacs 

"How do you know it is "nowhere near as secure"? "

CurrentC wants your social security number and your bank's routing number and your bank account number. Regardless of how securely or insecurely that information is stored, not giving that information out is always going to be more secure than giving it out. Secondly, they are storing that information in 'the cloud'. As recent events involving not only CurrentC but also Target and Home Depot (among others) should have amply demonstrated, it is a complete act of trust on the consumer's part that this information is encrypted and stored securely. CurrentC can be used on non-TouchID smartphones. If you lose your phone and have an insecure password or it ends up in the hands of a clever person, your account can be emptied in no time. On the other hand, only you can authorize an Apple Pay transaction with an iOS device using TouchID. Finally, CurrentC is asking to have access to your checking account. You are assuming 100% liability for fraud; no bank is required to compensate you for such losses due to fraud. On the other hand, Apple Pay only uses a linked credit card for transactions. Your liability is limited to $50 for CC fraud and in most if not all cases, the CC company will waive even that $50 charge. I hope that answers your questions.

I wasn't aware that they wanted your SSN, so I would agree with you.

As far as giving out your bank information though, this is probably not as bad as people think. As you know there are a number of services online that do e-checks, and all of this is done via bank APIs that are managed by the banks. Whether you initiate a transfer directly from your bank via CurrentC, a debit card, or a payment to your credit card provider from your bank, they all go through the same APIs. Of course, it is possible that the entity requesting the money will request the wrong dollar amount or something like that, but the transactions themselves should be fine, and any entity could theoretically request the wrong dollar amount with any account of yours held in any institution.

On the flip side of things, as I've said, Apple Pay is fundamentally tied to identities. Your credit card has your name on it, you have a credit history and credit rating that is attached to you as an individual. Your bank account is not tied to your name the same way - i.e. AFAIK you can request a transfer just by knowing the account number and routing number (routing number in the case of the US). In fact, I'm not really sure what a bank would do if you typed in somebody else's account number.

Regardless, fraud often seems to come in the form of identity theft. The CurrentC model seems to be better about preventing ID theft, if not for the fact that they want your SSN. Since they want your SSN, **** them. This changes everything.

The real future though is neither CurrentC nor Apple Pay, it is ID less/anonymous transactions with single use tokens, encrypted transactions, etc.

[sourkraut105]

"The real future though is neither CurrentC nor Apple Pay, it is ID less/anonymous transactions with single use tokens, encrypted transactions. Etc"

You mean cash!