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Is there any chargeback protection for users of Zapp yet ?

good point Paul.  I agree, both are needed. 

Yes Nigel, many retailers/SME 's have seen their visa debit rates increase. Some are now paying MSC of up to 0.9% whilst their acquirers have interchange costs of only 0.2% (+1p). What's happening is that because interchange on credit cards is being slashed, acquirers know this will expose their premium margins which will have to come under pressure and they are seeking to prop up profits by increasing margins on debit cards.

The group with most to benefit are acquirers.  Recent events in UK re Visa debit rates demonstrate that lower interchange doesn't automatically translate to lower Merchant Service Charges because acquirers use it as an opportunity to drive more margin from businesses on "blended pricing".  Same thing happened in US re the Durbin Act debit caps - acquirers pocketed the profit.  Benefits to merchants on blended pricing will be drawn out over a prolonged period.

Vineet - Douglas's assessment is correct in that under the current model Apple are sharing in the interchange element which as you say is paid to issuers and thanks to the European Commission that interchange is fast shrinking and capped at 0.3%.  Can't see the issuing banks keen to give away 50% of their interchange ?

15 basis points doesn't sound a lot and it isn't as a proportion of US interchange rates.  But come to Europe where the EU is capping interchange at 30 basis points and the commercial model doesn't work.  Something will have to give in someone's margin structure or European merchants will face a new, separate charge to accept ApplePay.  

Its a pity Zapp/PayM etc won't have chargeback protections for consumers.  Limits their appeal for certain types of purchases.