Why the Apple Card is a smart revolution

Presented during the last keynote of Apple, the Apple Card is already shaking the banking sector. Already present on this market with its Apple Pay feature, the California firm disrupts codes with a credit card ahead of its time.

The first rumors about a credit card made in Apple appeared last February, but few people believed. However, the Californian firm did it well. It partnered with Goldman Sachs Investment Bank and MasterCard to develop a revolutionary credit card. During the March 25 conference, Tim Cook CEO and Jennifer Payey, vice president of Apple Pay, have repeatedly listened to the benefits of this new payment method, but is the Apple Card really so interesting?

Technology at the service of the customer

It is true that the credit card has good arguments. The association Apple and Goldman Sachs offers a product at the forefront of technology and banking. Available in digital – through an application – and physical, the Apple Card allows customers to track the history of its transactions at any time, as was already the case on Apple Pay, but it also offers users to know the location of purchases made via Maps. A good way to ensure the traceability of expenses.

In addition, each purchase is recorded by color according to its category (entertainment, shopping, food and drinks). It is thus possible to follow the total expenses for this or that category over the week or the month.

The application has really been thought to work on iPhone and it feels. Consumers will have access to all their expenses and will know where, when and where they were made. What offer an accurate and real-time overview of its purchases.

Cash back and zero hidden fees

Although this is a credit card, the California firm ensures that no activation fee, use (monthly or annual), nor delay will be charged to the customer. But the most interesting argument that could convince many consumers to take the plunge is the cash-back system put in place.

The principle of cash-back is simple and has existed for a long time now, but is not offered by all banks. Here, the Apple Card offers it in several versions. With each purchase made with the physical credit card, the buyer will receive 1% of the amount of his purchase back, in cash directly to his account. The percentage increases to 2% when shopping with the digital card – or Apple Pay – and 3% for purchases made on all Apple infrastructures (online store, Apple Store, App Store, iTunes). No limit per day is imposed.

Note that this is a credit card, so it is necessary to bail out or refund the expenses made with this card. But here, Apple offers to determine what is the most interesting day to repay your debts based on the interest rate.

10 years ahead of the banking sector

Beyond these positive points for the consumer, the Apple Card is positioned far ahead of other credit cards traditional banks. Good points on the bottom, but also on the form.

At first, the interface of the application is stylized, clean and easily readable, aspects to which the Apple has always accustomed us.

We do not find the visual quality and the same type of information – as easily in any case – on the applications of other banks such as Belfius or CBC. The interface of the Apple Card is clear and precise, but it also centralizes everything without the need for other applications.

In a second time, the physical version of the Apple Card seems to come from the future. In titanium, we find once again the leg of the Apple in its sleek style. It contains only the bare minimum of information, namely the name and first name of its owner and is, therefore, more secure than other traditional credit cards.

The physical version of the Apple Card is useful in institutions where Apple Pay is not available because it includes a MasterCard chip that allows it to pay anywhere without the risk that his data are copied by a curious. You can also pay online with it, just copy the virtual card number in the wallet application.

An Apple signed strategy

We can imagine that the Apple Card will have some success after its launch in the summer of 2019 simply because it is an Apple product. Beyond the need to have a credit card, the Apple Card is a product apart from that many will want to get. It is different from what we are used to seeing and bringing many benefits to consumers, beyond the prestige that comes with all Apple products.

Do we really need it?

Although interesting, one might wonder if the Apple Card is really necessary. This credit card is an opportunity for Apple to diversify its services, a strategy it has clearly established during its keynote.

Today, the payment methods are numerous and one more is not really necessary. However, the concept is attractive, including the cash-back system and the lack of fees that can convince the consumer. This is where Apple could do well and influence traditional banks.

It will take a few more months before seeing the Apple Card in action. Scheduled for this summer in the United States, it could be deployed in Europe in the course of 2019

Ensuring payment security in a Digital age

In an increasingly digital world, the risks of fraud and cyberattacks are higher than ever for businesses. Developed by The Economist Intelligence Unit and commissioned by American Express, the Business Reality Check report , which assesses risk and analyzes companies in 200 countries, revealed a significant gap between market data and business views on cybersecurity . Indeed, the report finds that while Canadian companies face a significant rise in hacker threats, cybersecurity is not always at the top of their agenda.

However, the report of Experian The 2018 Global Fraud and Identity Reportnoted that for 72% of companies, fraud has become a growing concern in the last 12 months. Here are ways that financial decision makers can improve cyber security and minimize the risk of payment fraud while optimizing processes and system efficiency.

“As a global network and payment service provider, American Express is involved in all stages of the payment process. When you do business with us to make payments or process your transactions, you get the most out of our unique perspective, whether it’s security or data analysis, “says Paul Roman, Vice President and General Manager, Payments. For Corporate – Worldwide at American Express Canada. “We want our partners to be confident that they have effective security solutions to build a lasting relationship of trust with their customers,” he says.

Protect your customers by offering secure payment options
By increasing the security of point-of-sale payments, you will increase the trust of your customers. The lack of visible security is the main reason why customers abandon a digital transaction. In fact, according to the Experian report , 27% of customers claim to have dropped a transaction due to a lack of visible safety signs. In addition, 66% of consumers feel protected by the presence of security protocols in digital transactions.

By putting the right technologies in place and partnering with trusted organizations, you make sure your customers’ payments are secure. For example, American Express subsidiaries Accertify and InAuth maintain a close partnership that provides American Express and its customers with solutions to counter fraud. Knuth’s technology enables device identification and risk detection. Thus, it helps to limit fraud within digital channels.

For its part, Accertify is a leading provider of fraud prevention, billing and payment management solutions. Many companies have developed a variety of algorithms, but Accertify has billions of transactions and data points to feed its people. The company can then better identify the good and the bad actors in the different systems.

Reduce fraud with digital payment solutions

New digital payment solutions have emerged in recent years to reduce manual inefficiencies, improve the efficiency of reconciliations and, most importantly, reduce the risk of fraud by enabling businesses to detect and analyze easily mistakes. These solutions offer the convenience of traditional credit card payment, in addition to providing accurate controls for transactions. Businesses can, therefore, set pre-authorized payment amounts and dates that specify the amount of time suppliers have to complete transactions. In addition, most digital payment solutions assign a unique number to each transaction, which simplifies the reconciliation process and facilitates the detection of fraud.

Invest in Emerging Cybersecurity Solutions

Recent research has shown Canadian business leaders to see cybersecurity as a major challenge. Unfortunately, the existing infrastructure for cross-border payments is often outdated, inefficient and insecure. Business leaders therefore have a strong interest in investing in new technologies, such as Blockchain, that can improve data protection and thus provide a stronger line of defense against cyber attacks.

Why online banks have become unavoidable

Having an account at a bank branch costs more and more. Gone are the days of free checking accounts. Since 2015, banks have generalized maintenance fees, around € 24 per year in major networks. More than 90% of these are withdrawn, according to the Observatoire des tariff bancaire. Annual dues for blue cards are also climbing. They would approach on average 65 €, according to the website Panorabanques.com

By adding all the paid services (card payments and checks, withdrawals, transfers, authorizations of levies, card subscriptions with insurance, etc.), the average cost of a bank account reaches 150 €, according to the National Consumers Association and CLCV users, and nearly € 200 according to the Best-Bank.com website.

Despite the annual summary of fees, mandatory for all customers for ten years, 26% of French people have no idea what their bank costs them, and 51% have a rough idea of the costs of their current account, according to an OpinionWay survey for Fortuneo. But 70% say they are ready to change institutions for less than 150 € savings per year, according to the same survey.

Reasonable rates from online banks

Switching to online banking saves most of the 150 to 200 € collected in branch networks. The three leaders in the French market, Boursorama, Fortuneo and ING Direct, charge almost nothing. Everything is free, transfers to withdrawals through the MasterCard credit card, provided you meet a few commitments (domiciliation of income or minimum savings, use of his credit card at least once a month, for example). All in all, banking fees would be limited to € 10.54 per year at Fortuneo and € 12.80 at Boursorama, and again, especially for active profiles, mainly because of commissions on payments and withdrawals by CB outside the euro zone.
The supply of discount banks has grown over the decades. The first Bank to be launched twenty-five years ago, Banque Directe, now Axa Banque, is no longer really an online bank and no longer has such a low tariff, since it has been linked to the network. insurers of the same name. But others have embarked on this segment.
With the Nickel Account, taken over by BNP Paribas since 2017, customers have an account with a CB in a tobacco shop for € 20 a year. On a similar principle, Carrefour Banque offers its current account C-zam, with CB, for € 5 at the opening then € 1 per month. It is also the spirit of Monabanq (2 € per month with CB Visa Classic).

Fees, a key factor in performance

Some remote banks affiliated with major networks, such as BforBank (Credit Agricole), or Hello bank! (BNP Paribas), also offer basic banking services with free CB under conditions. Finally, in the wake of Orange Bank, built by the telecoms operator since 2016 on the foundations of Groupama Banque, other “neo-buccaneers”, or “fintechs”, try their incursion on this market, like the French Eko by CA (Credit Agricole), the young Anytime sprout, or the German N26. In addition, most offer welcome gifts of up to € 80 or more to new customers, such as ING Direct, Fortuneo or Boursorama. Added reason to take the plunge!

In addition to savings on the cost of banking services, placing money through banks and online brokers also serves to reduce fees and significantly increase the profitability of its assets. Costs are a key element of performance, as the Autorité des marchés financiers regularly remind us. However, out of the € 1,700 billion placed in life insurance, management fees can be estimated at at least € 9.5 billion on euro funds and $ 7.5 billion on unit-linked assets (UC). ) , or more than 17 billion euros in fees per year.
Online, we benefit from funds in euros more profitable. First advantage, no entry fees, when banks continue to post fees on payments of up to 2%, even if they commonly reduce them to 0.5% by “commercial gesture”, to convince their customers to stay.
Secondly, the euro funds of Internet contracts generally have higher returns than most bank contracts, and much better for savers who wish to diversify their contract with UCs, ie investment funds.

Bank card fraud: get your money back the next day

Do not worry about fraud on your credit card. Your bank must return your accounts as they are before the next evening of your return or justify them to the competent authorities.

To maintain consumer confidence in all means of payment, the European authorities have provided that your banks and payment providers – established in the European Economic Area – will fully reimburse you in the event of fraud.

To ensure this, the Payment Services Directive (PSD2), which entered into force on 13 January and has been transposed into the Monetary and Financial Code (by the order of 9 August 2017) also invites plaintiffs who would not be reimbursed in due time to appear with the banking authorities, the Prudential Supervisory Authority and Resolution (ACPR) in France .

Do not wait two months to denounce your dispute
So now if you are in good faith and your bank does not reimburse you, the Banking Constable (ACPR) invites you to report the incident. An invitation made on page 18 of the 2017 Annual Report of the Observatoire de la Securite des Means of Payment. You will do so without waiting for the two-month period to communicate your dispute to the mediator and during which the situation of your account could deteriorate seriously.

This “denunciation” may diminish the lawsuits and the number of cases brought to the attention of the mediators and authorities on this theme: more than 300 landed last year at the mediator of the French Banking Federation that manages litigation of several banks.

Remember that if you could not suspect fraud because your card remained in your possession, no payment validation was requested or that the fraudster managed to divert security barriers such as the code strong authentication, you will be fully and immediately refunded.

Your rest-to-charge is zero. This applies to all payment transactions that you have not validated or that you would not be responsible for.

Better, your bank and new payment service providers, such as Nickel , the proposed payment account at the tobacconist, must also remit your accounts in the state by also reimbursing any overdraft fees caused by the disputed payment.

And this from the day following your complaint, except in case of suspicion of fraud on your part or gross negligence that must be substantiated to the authorities. But in this case, it is up to your institution to prove that you are responsible by gross negligence or will fraud, not you to prove that there has been a piracy.

Only a deductible of 50 euros can remain your responsibility in case of theft of your card and fraud before you do not oppose (to urge you not to delay!)

Remember that apart from cases of theft and opposition to be made urgently, the directive grants you thirteen months to assert your rights in case of fraud (previously you had only 70 days to denounce a fraud on a payment outside the European Union) but it invites you to do so without delay so that your provider can implement the necessary means of struggle.

Respect some instructions of vigilance

Do not let a fraud spread, especially if it was repeated. This could support your bank’s suspicions about you or your loved ones. You are not supposed to give them your cards and codes!

Do not leave your codes hanging on post-it notes and your cards on your desk when there is passage. Because your bank may still refuse to reimburse you if it has strong presumptions against you, provided however that it argues its position to the authorities immediately.

And as prevention is always better than cure, stay wary when an email invites you to update your means of payment, operating mode of “phishing”. Because every day the hackers of the web refine their methods of usurpation and they copy better and better real sites.

Do not lower the guard in the physical world, when withdrawing from distributors. In a restaurant or a shop, you do not leave your map and go to the counter if you have to.

Even if the fraud on payments decreases falls the Observatory of the security of means of payment which welcomes the means implemented: strong authentication on the occasion of the purchases on Internet, method of analysis and sophisticated surveillance on the part banks and e-merchants.

They know better and better detect and block fraudulent transactions. Do not be the weakest link .

Paying with your mobile is easy!

Thanks to Paylib, Apple Pay, Samsung Pay or Google Pay, paying with your mobile phone is more affordable than you think. So what are you waiting for?

Did you know? All payment terminals set to accept the contactless card also accept payments over the phone, via Paylib, Apple Pay, Samsung Pay or Google Pay, which use the same technology.

It is designated on the terminals by the oval filled with four curved lines symbolizing the waves of the NFC (Near Field Communication). But some traders sometimes learn from their customers!

And thanks to Paylib and Google Pay, no need to invest in a mobile of last generation. As Benoit Grisoni, CEO of Boursorama, said in launching Google Pay last November: “All Boursorama Bank customers now have the option to pay for their purchases in-store and online, with any mobile device.”

To date, Boursorama is the only major French bank to offer the three main digital wallet portfolios of Apple Pay, Samsung Pay and Google Pay, in addition to Paylib, the French solution, created by a consortium of banks for counter the boom of Paypal, and boost mobile payments. But agreements between banks and providers of digital wallets are multiplying.

By integrating Apple Pay on March 5, La Banque Postale follows the example of Carrefour Banque and the Caisses d’Epargne, the first to conclude with the firm in the apple, in July 2016, followed little by little Fortuneo, Societe Generale , Boursorama, Crédit du Nord then BNP Paribas and HSBC this month of February

In two clicks with Paylib

It’s up to you to see if you draw faster with your card (at the bottom of a wallet in the bag) or your phone! Specifically, the mere fact of approaching your mobile phone from a contactless payment terminal awakens the payment application of the phone.

The Big Banks Paylib banking solution will still require two clicks, one to open the application and the other to validate that this is a payment you want to make, when Apple Pay and Samsung Pay will only require one single click biometric validation (with the ID key or even a facial check with iphone X).

Paylib wants to be very secure, with a click or two more than Apple Pay or Samsung Pay (which annoys some bankers determined to do it at this click too much!).

It’s up to you to judge the art of the customer experience implemented.

Then you put your mobile on the payment terminal to complete the transaction and a beep sounds. Up to 30 euros, there is no code to enter, whether you use your card (contactless) or your phone.

New applications on track

If the services of your bank do not satisfy you, new payment applications or neo-banks open you access to mobile payment (by debiting the bank card that you have enlisted beforehand).

Among the recommended payment applications: Lydia is one of the largest French fintechs with 1.5 million users and includes the CNP insurer in its capital, and compatible with Apple Pay, Samsung Pay and Google Pay; or Max, Crédit Mutuel Arkea application also open to all and compatible with Apple Pay, Samsung Pay, and Garmin and Fitbit wristbands.

The latter allows you to aggregate all your other cards on your own card and to debit the card of your choice, and even to create a payment account .

Among the neo-banks, C-zam opens Apple Pay and Carrefour Pay, Orange Bank offers Orange Cash and Apple Pay; German N26 is one of the few to offer in France Google Pay, in addition to Apple Pay.

Most of these payment solutions are in the starting blocks to associate loyalty programs to make you use your cards and / or refer you to partner merchants to value your data and earn commissions from merchants.