Apple Pay and Interac Together

Is this a good thing is the question to be answered, but later on in this I will discuss that. I have written about Apple Pay and Near Field Communication (NFC) before, but now it seems to be really will be usable in Canada, with Interac announcing an agreement with Apple on using this technology.

NFC

NFC an interesting idea?

Before you leave this page to go set this up remember there are a few limiting factors here:

  1. You need an iPhone 6 series (or above) or a later iPad series (although who would wander around with an iPad to buy things). The Apple Watch also supports this, but it ends up being “attached” to an iPhone as well.
  2. You need a bank account that you can access via Interac (figured I’d point that one out, just in case you were not sure).
  3. For the Interac part, you need to have an account with RBC or CIBC. CLANG!!! I knew there was going to be a catch.
  4. It also works with Amex cards, ATB Mastercards and Canadian Tire Mastercards

OK, so the title is a little bit misleading, as only a few banks are covered here.

The real question, is NFC (Near Field Communication) a good thing? Depends on who you ask. If you read the link I supplied you will know:

NFC is a set of short-range wireless technologies, typically requiring a separation of 10 cm or less

Sounds perfectly safe, doesn’t it? PC World has a very good article about a few steps to take if you are going to use this technology (the reading the fine print and your agreement on use of the technology). The other thing to remember is if you are going to use this technology, your phone had better be secured (i.e. password locked, at least).

It will be interesting to see how well this whole thing works, now that it is more in general usage (in Canada).

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Fees and Penalties

Remember that great expression from your local video store

“Be Kind, Rewind”

Back then, some places even charged a penalty if you didn’t rewind your VHS tape. Interesting that this fee went away, but that is because the entire “VHS Rental” business disappeared. That sounds like a fairly sarcastic commentary, but how many fees disappear?

VHS Tape

I will bet there are readers who have never used one of these

  • My home telephone bill (yes I still have a land line) had a “Touch Tone” charge on it (up until July 2015), but if I tried to use a rotary phone I get nasty remarks from Bell, pointing out the technology really isn’t supported any more. The fee finally went away after Bell was shamed into removing it by the CBC.
  • How about that fun “paper charge” if you still got your bill mailed to you? Wasn’t that Green and cool? That went away (mostly) after the Government said they were not allowed. I actually can see why that charge was there.
  • Account fees for day-to-day banking continues at most major banks, even though many smaller banks offer free banking (PC Financial, Tangerine and others), yet we continue to pay for the services at major banks? Michael James has pointed out that eventually the Major Banks will take a dive and may finally stop charging these fees? Nah, never gonna happen.
  • On line trading fees started at $29.95 and it has dropped steadily since (and is around $9.95 or lower). Since I am pretty sure the trading houses are still making money on this, it does make me wonder how low could these fees go?
  • The airline industry seems to have completely built their profit structure around service fees, gas fees, take off fees, sitting in nice seat fees, not getting broken cookie fees, etc.,etc.,. and not many of those fees are going away. Aren’t they charging for carry on luggage now?

Are there any fees that may go away some time soon? I can’t think of many (maybe gas taxes once gas cars go away). Pretty sure overdraft fees will never go away.

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Michael James, inspired me to write another rant/commentary on the financial industry. He wrote about Mouths to Feed in the Financial Industry and it reminded me of a very funny monologue by Chris Rock: Bigger and Blacker (Amazon Link) about how Fathers don’t ask for much in life.

What does daddy get for his hard work? The big piece of chicken at dinner! My mamma would kill us if one of us ate the big piece of chicken by accident!

Daddy's piece of chicken

That is a BIG piece of Chicken

What does this have to do with the Financial System? Everybody in the financial system thinks they are Daddy, they all want the big piece of chicken.

  • Mutual Fund managers want you to pay the front-end, back-end and high MER fees because they are doing that much work to invest for you. That is a whole chicken, not just part of it.
  • Banks think they are the Daddy, just for taking care of your money. There are banks in Europe giving negative interest on your money (the money shrinks if you leave it in the bank).
  • Any Cell Phone Company (in Canada) is your Daddy, how much do you think their service really costs, but they are making sure you get quality service.
  • Internet Service Providers are plumbing, but they want a big piece of Chicken for the way they count your packets (and charge you if you use too many)

Let Daddy have that big financial piece of chicken? No way! They get enough, without taking the big piece of chicken too!

 Image courtesy of piyato. at FreeDigitalPhotos.net

 

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Debt Cash Grabs and Your Bank

A while ago, Gail Vaz-Oxlade put out a simple Facebook post that blew my mind.

I had heard this could happen, but evidently it happens a great deal, when folks build up large debts, or get too delinquent with their debts. The terms of your banking agreements make this all legitimate (so read them over closely to see what other interesting things your bank can do, I am sure there are others), but it does seem interesting that banks want you to consolidate your banking in one bank, and they will entice you to do this with great “deals” on things.

Customer Retention

Don’t put all your eggs in this one mousetrap

Does this mean you should go out and diversify your assets and your debts so that they are at least arm’s length away from each other? Might not be a bad idea, if you are the kind of person that builds up large personal debt loads and is very likely not to pay those debts back (or has a tardiness streak in you), but then again, if you were that kind of person, would you think of this?

It seems there are folks who try to game the system, and will bounce around from bank to bank attempting to stay one step ahead of debtors prison (or the bill collectors), but I haven’t met many of those folks. Is your bank suddenly garnishing your money a real concern? Not for most folks, but it is something you should keep in mind, just like if you buy your lottery tickets with a credit card, it is treated like a cash advance.

File this one in your TIL file (Today I Learned).

 

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Is Your Toilet Flushing Hot Water ?

That is a very odd title, but it did happen. My Brother had just moved into a new town-home complex, and there were a few idiosyncrasies that he found in his new place, but he didn’t notice this issue for a little while after moving in. He really only noticed one day when he sat down and noticed the warmth emanating from the commode, and only then realized that his toilet was connected to the hot water system for his house (not a huge issue, but it would waste a little money for a long time).

Pyromania is burning the unburnable!

No, it wasn’t that hot

Are you flushing hot water in your financial home? How many fees are you paying that you are unaware of, or worse, are ignoring? What kind of fees am I commenting about?

  • Bank fees, do you still pay those? There are so many banks that offer zero fee accounts, why are you flushing that hot water (money) down the toilet?
  • Entry fees, exit fees and high MER Mutual funds? Seriously, how many times do we (pretty much everyone writing about investing) have to write about this topic? Evidently, we have not hit the maximum count yet. They are called Index Funds, look it up.
  • What are you paying in Insurance rates? Are you shopping around? Remember that insurance is only for ” … in case stuff happens …” (to paraphrase Chris Rock).  If you are overpaying for insurance your money is flushing away.

Am I missing any other Financial Toilets that flush hot water ?

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