Google Wallet

Following previous statements from MasterCard, Visa is potentially planning to charge mobile payment operators extra fees for their transactions. Speaking at the Barclays Emerging Payments Forum, CEO of Visa Charlie Scharf stated that it would be "totally appropriate" to charge mobile payment processor additional fees for using its cards for payments. Payment systems like PayPal and Google Wallet are what's called a "staged wallet", which acts as an intermediary between credit cards and retailers that are accepting the payments. Because of this, when Visa and MasterCard cards are attached to the services they don't receive back as much information about the purchases being made.

Once relegated to just online purchases, the likes of PayPal and Google Wallet have started to put this payment system to work at physical retail locations as well. This not only directly cuts into the fee income of Visa and MasterCard, but cuts them twice when they also don't receive the valuable customer purchasing data. These additional fees, which MasterCard already plans to implement, will hopefully help in both arenas.

"Help" may not be the best descriptor though, because a new set of fees for staged wallet providers will only reduce the number of choices you have to pay with. Visa and MasterCard have a huge interest in cutting down any competing payment systems that sidestep their current ways of doing things. As many know, they have even gone so far as to launch their own mobile payment systems -- to little adoption.

We know that consumers want these types of single-wallet systems to simplify the way they pay for things every day, let's just hope that Visa and MasterCard don't have their way with this one.

Source: Reuters; The Verge

There are 40 comments

icebike says:

Gee, poor visa, denied access to purchase data they had no right to in the first place.

This ends up in Federal Court in no time folks.

DWR_31 says:

Right on credit card companies. Stick it to them for not letting us get our rewards points.


colindean says:

Or just switch to Bitcoin and circumvent them all...

icebike says:

Good luck finding any merchant that takes bitcoin. With all the bitcoin in the world you would starve to death before you found a restaurant or grocery store that accepted it.

RustyU says:

Bwahahaha good one.

Let's all use an unstable commodity that's backed by asbergers.

mwara244 says:

The only people that I have seen accepting bitcoins are online drug dealers

tr-1 says:

Wow, this is another huge setback in NFC payment fiasco.
No way I'm gonna use it if I have to pay even a fraction of %. This will add up over time

Grahaman27 says:

you wont pay, google will.

squiddy20 says:

Source or just another wishful idea.

Grahaman27 says:

fine, here.

"Visa and MasterCard already charge the store you're in for each transaction run on a credit/debit card, but now they want to also charge the middle-man"

stef92263 says:

And whom do you think google will pass the cost too?

Grahaman27 says:

you know we are talking about google here, right?

rits2011 says:

Google? Pass the cost? What cost? Google services are free.

Paul McElroy says:

Bitcoin. Duh.

Jay Holm says:

I don't understand this, Visa & MasterCard debit & credit cards are still being used, their just being used using NFC, instead of the actual card.

Aren't mobile payments ALREADY a reality in Europe & Japan? They figured it out there, let's figure it out here.

mech1164 says:

What's sad here is this is exactly the type of stuff that makes people hate big corporations in the first place. Instead of playing nice and helping get this stuff off the ground. They instead try to strangle it in it's infancy. As was mentioned their efforts have been at best tepid to atrocious in it's adoption. In other words if ya can't beat'em KILL'EM!

bp3dots says:

They don't have to beat or kill them. They just have to get paid like they would for swiping a card.

ScottColbert says:

Spoken like a true corporate whore.

icebike says:

They already get paid. (Seriously, how could you assume the credit card companies weren't getting paid?)

What they don't get is information about what you purchase.

Buy a book and pay with PayPal, and PayPal charges your visa, but doesn't tell them what you bought. How is the credit card company going to whore you out to other companies when they don't know what you purchase?

mwara244 says:

They make billions selling every customers personal information every year without any compensation to those customers. Fuck Big Business, Corporations causing the Downfall of Western Society.

danfinger says:

Wrong. Everyone knows Swing Dancing is causing the downfall of society. DUH!

greasyspoon says:

But the harlem shuffle is taking it back!!

TheDu9du says:

If Visa and MasterCard have been ruling our lives for decades then we should keep bowing down to them until they want. They have been selling our information to whomever pays for it, so there's no reason to fight them.
Do not fight the machine

bp3dots says:

You don't have to interact with Visa/MC at all. Use cash or checks. People use them for the conveninece, and accept those terms.

Jay Holm says:

Checks?!?!? Those are for old people!!!
They hold up lines at supermarkets...

Robbzilla says:

A lot of places no longer accept checks.

I have a hard time arguing with them. Checks should be dead.

Jay Holm says:

What is the latest with ATT, T-Mobile, and Verizon joint venture ISIS???

Last I heard ISIS had test markets in Austin, Rx and Salt Lake City Utah. . .are there any plans to expand later this year???. . .

thedeceiver says:

It's refreshing to watch the sheer ignorance that people display in the financial aspects of a credit card processor. Your Knight in Shining Armor (Google) gets an additional cut of the processing fee but has none of the risk that Mastercard and Visa do.

When your card gets used fraudulently on Google or PayPal wallet, whoaare you going to call?

jckwong says:


The lot of you crying in an uproar should use cash instead of trying to show off your NFC feature on your phone. The merchant would appreciate it

icebike says:

Go back and re-read the article.

It's not about fraud. Its about thc CC company not getting information about what you purchase.

l00natic71 says:

Uhm, I would contact my credit card issuer... since, you know... they are the ones billing me.

Gearu says:

Lol. I can understand Visa wanting to put a surcharge on transactions done through physical stores at the register, but if they try to go backwards and attack online paypal purchasing that has been going on fine and dandy for over a decade, they can fuck right off. At physical stores you should be paying with cash anyway, not being the dummy that holds up the line.

Funnily enough, this assault plays right into Google's hands, as we saw months back they are launching their own physical credit card.

mtmerrick says:


the person who pays with cash is always slower than the person who uses plastic. always.

vegiisan says:

Lol uhm, paying with cash is slower than card, in what world do you live where CC is holding up the line? You're telling me that using PayPass tap to pay or inserting and hitting credit for instant transactions is slower than handing them cash, waiting for the till to open, change and than receipt is faster than card, tap, receipt? Okay.

l00natic71 says:

You think that paying cash is faster? Have you ever used a card to pay?

FreudSlipped says:

Small transactions, yes, cash is faster. Just listen the next time you pull out your card to pay for a single cup of coffee. That collective groan you hear is all the customers in line behind you praying that you aren't in front of them the next time they need their caffeine fix.

Exactly. I thought PayPal already paid the % to visa. I thought that was part of the deal for you to use their service.

keithz says:

Time for Google to launch its own bank so it can issue its own Visa and Mastercard credit cards.

Good use of its billions.

DIrEctQL#AC says:

There is a company locally here in Geneva, IL that is doing a pilot of their mobile payment platform and they completely side-step VISA and MasterCard for this reason. They have an iOS and Android app as well as NFC bracelets and stickers one can use to pay. Pretty neat. It's called PushCoin (

I hope we'll see more of these companies because for me, as a merchant,VISA and MasterCard charges are way too high already and going up.

mawil1013 says:

Visa has paywave but I cannot find a visa app to paywave my phone.

they will hinder emplimention of NFC if they get aggressive.