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MCX responds to Apple Pay blocking controversy with unconvincing ‘assurances’

mcx

MCX, the retailer consortium behind the CurrentC mobile payment system, has responded to the controversy over its members being required to block Apple Pay or face fines with some unconvincing ‘assurances.’

The first sign of trouble between MCX and Apple Pay was when CVS disabled NFC functionality from its payment terminals. When Rite Aid joined in, consumers responded by threatening to boycott MCX members.

In a blog post which MCX says is designed to “set the record straight,” it appears to do anything but … 

Responding to the fines issue, it makes an extremely disingenuous statement, even using bold type to do so.

Importantly, if a merchant decides to stop working with MCX, there are no fines.

Nobody has suggested there are. What has been suggested–and which MCX has not denied–is that members are fined if they accept other forms of mobile payment, like Apple Payalongside CurrentC.

The consortium gets off to a marginally better start on privacy, with a statement that consumers “can choose to limit the information they share through our privacy dashboard, which means they will have the ability turn off location based services and opt out of marketing communications in our app.” However, that does nothing to limit the storage of other sensitive information, nor to address claims that merchants will share purchasing data amongst themselves.

Claims that pharmacies would collect health data, which would be stored in the CurrentC system, were met with another disingenuous response:

CurrentC does not collect any information from any other apps, or health information stored in the mobile device.

That is merely stating that health data is not collected from third-party apps, not that it is not collected at all. Still, there’s a link to the Privacy Policy to learn more – a link which is, at the time of writing, broken.

privacy

Most laughably of all, MCX issues the following ‘assurance’ about data security.

We want to assure you, MCX does not store sensitive customer information in the app. Users’ payment information is instead stored in our secure cloud-hosted network.

So, they are assuring us that the data isn’t stored in the app–where we control access to it–but in their cloud system, where we don’t. Given past credit card hacks at major retailers, including a huge one at MCX member Target, consumers are unlikely to consider this good news.

Apple Pay, in contrast, doesn’t even store your credit card number, as the company explains on its webpage.

With Apple Pay, instead of using your actual credit and debit card numbers when you add your card, a unique Device Account Number is assigned, encrypted, and securely stored in the Secure Element, a dedicated chip in iPhone, iPad, and Apple Watch. These numbers are never stored on Apple servers. And when you make a purchase, the Device Account Number, along with a transaction-specific dynamic security code, is used to process your payment. So your actual credit or debit card numbers are never shared by Apple with merchants or transmitted with payment.

In forcing a battle between CurrentC and Apple Pay, MCX seems to be guaranteeing there can be only one winner – and it’s not going to be CurrentC.

Update: MCX has already been hacked.

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Comments

  1. Well, they put their foot further in it there.

  2. johnsnyder7 - 9 years ago

    It’s CurrentC, not ConnectC by the way

    • myke2241 - 9 years ago

      could be ConnectC is the network name.

  3. PMZanetti - 9 years ago

    This whole mistake has EOL written all over it.

  4. myke2241 - 9 years ago

    i would like to point out that MCX merchant list are now hit list for targets of future attacks by hackers. this is about the worst thing these retailers could of been part of.

    There are a number of retailers that can’t afford to be part of this. Bestbuy and Target need to get out and cut their losses.

    • iSRS - 9 years ago

      I agree. I think their stance of imposing fines if they also accept competing products/services is only going to make them a huge target.

      Good luck to anyone that signs up for this. Your financial security is going to need it

  5. brianj2k - 9 years ago

    When you are in a hole… STOP DIGGING!

  6. Elli Thekingofbroadway - 9 years ago

    IF I were that guy I would suggest going into CVS or Rite-Aid filling my cart with as much small merchandise as I possibly could & check out & when payment time came & they said “oh sorry we don’t take Apple Pay” I would say “oh then I don’t want anything” & just walk out – but of course, I’m not ;-)

    • Ray Wolf - 9 years ago

      I’m that guy, but I’m in Canada so I’m unable.

    • proudappleuser - 9 years ago

      Now you are just being mean to the clerk that has no control over the situation. Personally, I speak with my money and I wont go to stores that limit the way I buy.

      This isn’t an Apple vs MCX issue. It’s a customer options issues. If there is a more secure option, like  pay then I want to use it.

      • Shon - 9 years ago

        I agree that it IS cruel to the clerk, but, at the same time, the more word gets up to management, the quicker this whole debacle will be behind us all. Sometimes, it takes a lot of visuals to make certain slow-witted decision makers to realize the error of their ways.

    • This is definitely a clever idea. One to surely make you laugh cynically on your way to your car afterward.

      But, this would merely put the onus on the (probably) low-paid worker, NOT the Executive Member driven around in his/her Bentley. Sure, this could make a worker quit, and the company would, maybe, feel the pain; a Store Manager could complain to higher-ups about the activity and how it is on the decision NOT to accept ApplePay. but more than likely this is a moot point in response to MCX. but perhaps this is exactly the thing to do, have a “National Cart Filling Day” at these retailers. this would put the work on the low-paid clerk, but the “community response” would be all had on one day.

    • As someone who worked in retail at various stores for many years I just have to say: don’t do this. You would just end up being a jerk to the poor associate behind the counter and it wouldn’t accomplish anything.

      • WaveMedia (@WaveMedia) - 9 years ago

        Tell their manager (or ask them to tell their manager) why you’re doing it. It’ll go up the chain eventually the more people complain about it. Sadly the only way to get the attention of those higher up is to make a bit of a scene from time to time, especially in cases like this. An official complaints letter will just be filed under “Sorry you were upset, tough shit”.

  7. Sebastian Rasch - 9 years ago

    Haha this is brilliant. I laughed out loudly when I read the cloud statement. Seriously, it gets better and better. And with that, I mean worse.

  8. Oh, my personal data is stored on your servers. That puts me at ease…

  9. baf2099 - 9 years ago

    The MCX supporters really just need to cut their losses. Yes, they may have invested a hefty amount of money to partner with MCX, but now seeing the secure options that other services have to offer, Apple Pay being one of them, how in good conscious could these retailers stick around with MCX? It honestly may be in MCX’s best interest to just allow other services transactions as well and try to do something better to actually win people back.

    • dksmidtx - 9 years ago

      Your question pre-supposes “good conscience: and that is belied by the comment of former Walmart CEO Lee Scott who Forbes reported to have said, “I don’t know that MCX will succeed, and I don’t care. As long as Visa suffers.” Couple that with the overwhelming desire to share customer purchasing information among member of the consortium (or should we call that “brotherhood”), and Walmart et al have no concerns about the customer, only themselves.

      Take your fight with Visa/MC/AMEX outside kiddies, and leave the consumers alone – AND PROTECTED – you can see how good the merchants have been at that (looking at you Target, Lowes, JP Morgan, etc…)

    • verizon2828 - 9 years ago

      I agree. Back in 2011, the idea of “the cloud” was not nearly as present as it is today. So when MCX pitched this to the idiot execs, they were on board. Unfortunately for them, technology has very rapidly advanced over the past few years. On top of that, cloud security has also been a big issue that’s affected millions of consumers at Home Depot and Target and more. Those companies cannot be trusted with sensitive data. Their primary business objective is selling goods and services so I’m sure network and cloud security take a backseat to that. Now we’ve got the ApplePay solution which is ultra secure and gives consumers so much more control over their personal data. By the time MCX finally launches, it’ll have zero penetration. Nobody is going to want to link their CHECKING ACCOUNT to their cloud. And for what…a measly 5% discount…MAYBE? Risk my personal bank account, drivers license and SSN for that? No way. Hey want to get rid of credit card swipe fees but not one person is going to assume all fraud risk on their own bank account. Our pockets aren’t that deep. We’ll keep swiping our cards at their stores and they’ll keep paying th swipe fees. In fact, I like a comment I read recently…start using my AMEX card at these retailers. Except I will damage the magnetic strip on the card. Not only does AMEX have a higher card swipe fee, but if the card number is manually entered, it’s a “card not present” transaction which costs them even more. Just to be an ass, I will probably do that. Fuck ’em. I used ApplePay at Walgreens this week and it’s amazing. So simple, so fast, and so secure. I’m in the same boat as others…I will look for retailers who accept ApplePay and do my business there whenever possible.

  10. Nycko Heimberg - 9 years ago

    Anybody thinks of his purse/money?
    The Apple Pay service is not free unfortunately.
    For you, and for the store which sells and accepts Apple Pay, there will be a higher price that with a card Visa-Master-americanExpress NFC.., during your purchase.

  11. eldernorm - 9 years ago

    Bloggers that call this a battle forget that CurrenC does not yet exist on functioning systems. Its still a year or so away. So RiteAid etc are saying they will forgo ANY touchless pay at this time. For the next year.

    Weird way to do business.

    • jrox16 - 9 years ago

      Yup, those retailers have morons running the companies at the executive level. To sign a contract on vapor ware years ago, for something so sketchy in the first place, is hilariously moronic.

      • Ry L - 9 years ago

        Sketchy to consumers, but it probably sounded like a sweet deal to them. No CC fees, customer personal data….what could be better for them?

      • I agree with Ry L…to the companies who thought they’d reduce CC fees when people used CurrentC, then getting customer data and possibly linking that to deals they send to the customer, they probably thought it was win:win. and Maybe somebody thought the customer might not like getting tracked but CurrentC probably said this happens already online with Google and people still use it, plus the customer will be getting “deals” based on their purchases.

        And some consumers might think this was good. it was like a Debit Card transaction but they don’t get the added fee.
        I don’t like the CurrentC setup though

    • dugbug - 9 years ago

      So will target pay fines for supporting apple pay

      • they might not have to since that is only via the Target App. probably some way around that, either MCX doesn’t help in their App/online purchases or that was not in the clause to start with. (guessing, obviously)

  12. Jonathon Karrels - 9 years ago

    I don’t think people should boycott these “CurrentC” companies. Instead go there and use your Credit Card so they are slapped with the CC fees that would be higher than using Apple Pay. That is where it would hurt them most. I do think that CurrentC is asking for trouble though. Just my opinion.

    • Ahh, but then the store is still making a profit on the goods sold. Better to give them nothing :)

    • Well they have been “slapped” with those fees for basically the last few decades, and the fees are the same as with Apple Pay since the card is considered present in both cases.

      • mechanic50 - 9 years ago

        Actually your wrong. Apple specifically said that they negotiated lower transaction fees than a standard credit card swipe fee. One of the reasons the banks accepted it was because Pay is much much more secure. Fraud costs banks and Credit card companies billions a year. Pay will substantially reduce if not almost eliminate fraud.

  13. dugbug - 9 years ago

    So will target pay fines for supporting apple pay

  14. Frank Geurts - 9 years ago

    I remember the old days when best buy would not stock dvd’s but only divx (yes that is where it came from). A wonderfull system divx where the player would upload your viewing habits and if you wanted to watch a divx you would get a “license to play”…….

    best buy has a great record of backing winners…….

    • aaronhurley - 9 years ago

      I hate to spoil your memories, but it was Circuit City that helped create and backed the DIVX format . Best Buy only stocked DVDs.

  15. b9bot - 9 years ago

    And now it has been hacked already. MCX your assurances have no merit, give up now and let consumers pay they way they want too!

  16. markpetereit - 9 years ago

    “When Rite Aid joined in, consumers responded by threatening to boycott MCX members.”

    Threatening? I’m not threatening. I actually *AM* boycotting them. And I don’t even HAVE an iPhone 6 (yet!)

  17. archie0527 - 9 years ago

    Remember that short video of the lady using Apple Pay during Apple’s keynote? How simple and quick it was. Put that video side by side a video explaining how to use CurrentCrap. You can imagine who wins

  18. saguenay (@saguenay) - 9 years ago

    What better way to prove you have an inferior product by preventing competing product to be used. If CurrentC believed they had a superior offering to Apple Pay they would gladly let anyone use Apple Pay until they come out with they amazing mobile payment solution. That say it all.

  19. Jason Ames - 9 years ago

    If CurrentC was just trying to get out of the commission to visa/mastercard, they could just set up their own payment network, and adopt their own cards and NFC payment systems. The fact that they don’t, shows that their primary goal is customer tracking, and information hoarding.

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Avatar for Ben Lovejoy Ben Lovejoy

Ben Lovejoy is a British technology writer and EU Editor for 9to5Mac. He’s known for his op-eds and diary pieces, exploring his experience of Apple products over time, for a more rounded review. He also writes fiction, with two technothriller novels, a couple of SF shorts and a rom-com!


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