MyECheck debuts check-based mobile walletM
yECheck, an electronic check company established in 2004 and based in Folsom, Calif., released a two-sided mobile payment application for merchants and consumers on Aug. 28, 2015. Available on the Internet, Google Play and Apple iTunes Store, eMobile Pay facilitates “card-free, hardware-free” payments on smart phones and Internet browsers for a low, flat fee, the company said.
Consumers can link a checking account from any U.S. bank to the eMobile Pay wallet. Merchants pay 25 cents per transaction to process eMobile Pay transactions. Using eMobile Pay in lieu of traditional credit card processing can save merchants up to 85 percent, the company stated. It further described the solution as an ideal banking method for the 21st century.
MyECheck designed eMobile Pay to address common complaints among merchants regarding settlement windows, security and chargebacks. The app processes payments in real time, eliminates chargebacks and offers guaranteed funds and enhanced security, MyECheck noted. Feature sets include quick response (QR) code invoicing, recurring billing and installment payments designed for enterprise-scale clients. Future enhancements planned include shopping cart integration and e-commerce plug-ins such as geo-location search and reward programs.
Retailer, card brand divide
Payment analysts have noted an increase in alternative payment methods, such as merchant-owned mobile commerce platform CurrentC and various digital currencies that bypass traditional credit card rails. They attribute this trend to the retail community’s growing disenchantment with card-brand pricing, risk management practices and inherent security vulnerabilities. Two examples of this dissatisfaction are:
- Payment card interchange fee and merchant discount antitrust litigation: In 2005, a group of big-box retailers led a class action lawsuit against Visa Inc. and MasterCard Worldwide for alleged price fixing of card brand interchange rates. Neither plaintiffs nor defendants were pleased with the proposed $7.2 billion dollar settlement, which Matthew Shay, President of the National Retail Federation called a “lose-lose-lose for merchants, consumers and competition.” A hearing set for Sept. 28 will address the pending appeal.
- Target Corp.’s $19 million dollar data breach settlement: Consumers and merchants are not the only victims of data security breaches. Small issuers across the United States have petitioned the courts for relief from the exorbitant expenses of refunds and reissuance of compromised credit cards. Claimants have stated that proceeds from the settlement inadequately compensate them for card reissuance and other breach-related costs.
eMobile features, freedoms
An epic number of litigious activities and high-profile data security breaches in recent years highlight the need for simple, secure and frictionless payments systems. MyECheck has positioned eMobile Pay as a timely solution to these issues. The company’s brand promise addresses merchants’ most common concerns, which it identified as follows:
- Freedom from credit card fees: eMobile charges a low $0.25 flat fee per transaction.
- Freedom from terminals, hardware and gateways: Users can download the eMobile app from iTunes or Google Play. Payments can be made via QR code in person, online, on invoices and through text messaging and social media.
- Freedom from fraud and data theft: MyECheck claims to have substantially reduced the risk associated with credit card acceptance. “This becomes more important as card processors continue shifting risk down to the merchants,” the company stated.
- Freedom from chargebacks: MyECheck protects eMobile Pay users against chargebacks with a 100 percent no chargeback guarantee.
- Free rewards and loyalty programs: In addition to providing what it deems to be a safer, less expensive payment method, MyECheck recommends passing through discounts to customers to further incent them to use eMobile Pay.
- Hardware agnostic: The eMobile Pay wallet is compatible with most Android, Apple and tablet devices and requires no additional purchase of card reader peripherals or hardware.
MyECheck was granted a patent in 2008 for its method of online check processing, and its eMobile Pay wallet won the 2015 Pymts Award for Best Check Innovation. It promotes its new solution as a fast, secure and cost-effective method for corporations, retailers, governments, financial institutions and payment processors to process payments in the United States.
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