Wednesday, May 30, 2012

The Coming Revolution In Paying for Groceries, et al


For years I have seen other countries (such as Canada) beat us to the easy-pay draw.  That is, they developed plastic cards or something that could pay for small items like newspapers, parking meters and lunch, without the typical scanning, paper receipts, signatures on one copy.

Lately the magazines have been talking about the coming of a card (or something in a smart phone) with an embedded chip, that you could just pass over a sensor at a store, and it would subtract the money from your bank account, or charge it to your Visa card.  No signing, and no buttons to push.  I thought that day wouldn’t come, but, look around, suddenly merchants have been trying to make the buying experience easier – without the use of special new cards.

Example One.  Walgreens is now letting me buy $25 or less with just swiping my card, and in the case of AMEX, giving them a zip code, and I get a paid receipt, but don’t have to sign anything.

Example Two.  Tonight I went through the checkout at Wal-Mart and while the cashier was ringing my groceries I swiped my AMEX card.  I kept waiting for the little screen that asks me to enter my zip code.  It never came.  Then I waited for the signing screen, it never came.  I was stunned when the cashier handed me my receipt and said “have a nice day”.  I asked here why I got to pay without any of the usual hassle, she didn’t know. I know Target does something similar now as well, but tonight was the first time I had seen that happen at Wal-Mart.

Example Three.  McDonalds will now let you swipe your credit card in front of the register, and it will accept the payment and they just hand you the receipt.  No more "making change".  No signing receipts or zip-code entry there either. 

Does this mean that some stores have learned the quality of certain customers from prior shopping and have decided it is worth the risk to just let them “go” and not hold them to signatures and zip codes?  Is AMEX taking the risk of fraud, or the store? Or is fraud such a small part of their overall operation it is a risk worth taking if it makes customers feel more like they are hitting the “one touch” checkout at Amazon.com?  

Pay Pal revolutionized my on line shopping many years ago. I have rarely, since joining Pay Pal, given any website my credit card information.  I consider Pay Pal a big boost.  First, my credit card is in their vault, not the merchant’s internet store-front. I am sort of blind, so it would be hard for a dishonest merchant to make some later charge to my card.  Second, Pay Pal knows where I want all my things shipped, so I don’t have to enter that information at checkout.  Greatly speeding things along. Third, Pay Pal’s website is a useful way to track my spending, and checkup on charges. 

Has anyone else found some new and faster checkout ?

After thought  --  I know some gas stations allow a “pass” card to be waived at the pump, and it will then pump the gas and charge it to some corporate identity. I used to have a car that would recognize me when I walked up and unlock the door and turn on the interior lights – all powered by some chip that was embedded the key.  The ignition was then, of course, key-less as well.  The chip guided the operation.  Even with a real key, there is often a chip in the plastic part that tells the engine it is OK to start.  With a cheap metal key copy, it will not start. The dealer is the only place to get an extra key, they program the plastic grip.

No comments:

Post a Comment