Blocking Apple Pay is Anti-Consumer

[Mark Spoonauer]

In an effort to avoid paying credit card fees, companies using CurrentC instead of Apple Pay are doing their customers a disservice.

Blocking Apple Pay is Anti-Consumer : Read more

 

[turkey3_scratch]

There is no reason Apple should assume their phones are the standardized way of payment. Honestly, Apple wants to take over the US way of paying. They assume that no one has Android, so stores should explicitly use Apple pay. What a load of crap. What we do need is a standard for all phones.

 

[burkhartmj]

There is no reason Apple should assume their phones are the standardized way of payment. Honestly, Apple wants to take over the US way of paying. They assume that no one has Android, so stores should explicitly use Apple pay. What a load of crap. What we do need is a standard for all phones.

This article overly harps on Apple Pay, but it's identical to Google Wallet. Some of the deep backend stuff is different, like how payments are processed through Apple, but it uses the exact same hardware and protocols. Anything that can use Apple Pay can use Google Wallet or Softcard. Whatever Apple wants in this space, it helps everyone who uses NFC payment systems.

 

[Miharu]

Why fair play?
Seriously! Apple block NFC on their phone for kept the control of payment.
Easy to use perhaps but what if I don't want to use Apple Pay?
I'm happy to see some companies against this insanity and show they can actually do the same as Apple do.

 

[glasssplinter]

There is no reason Apple should assume their phones are the standardized way of payment. Honestly, Apple wants to take over the US way of paying. They assume that no one has Android, so stores should explicitly use Apple pay. What a load of crap. What we do need is a standard for all phones.

I've never understood this either. Who walks into a store and complains about the payment types because they don't work with the latest fad? As long as they take cash, check, or a major credit/debit card company then deal with it. I've had NFC payment capability for a few years now and have no desire to use it and don't expect retailers to spend thousands to upgrade perfectly functioning hardware so I can tap my stupid phone on a pin pad. Just because crapple puts something out there doesn't mean it's the standard, it's just the opposite.

 

[none12345]

Dunno how you can say that apple pay is this mecca of innovation. or that its successful. It only just came out, the jury is still in on whether or not its successful.

So far, at my business, not a single person has tried to use apple pay. Our terminals support NFC.

As a small business owner, i just want something that erases credit card fees. Apple pay does NOTHING for me. I still get charged for every swipe of the credit card. Or in this case i get charged for a swipe of the phone(which on the back end is no different then if you had pulled our your credit card and swiped it)

All apple pay does is give apple a piece of the pie. Sure they say they dont charge you additional fees, and they get their money from the banks processing their transactions. However, if people start using it, and lots of transactions go through apple pay. credit card processing fees will increase, the apple profit will just be passed on to small businesses.

A credit card swipe costs the credit card companies virtually nothing, a tiny fraction of a tiny fraction of a tiny fraction of a penny to process that transaction. Yet they charge 25-30cents or so on each swipe, and they charge a percentage of the gross sale 1-2%. If your card is declined and the retailer swipes it again, they get charged another swipe fee. Even if its declined again. Hell swipe your card on a small sale, say a $1-2, and ive likely lost money selling you that item because of the swipe fee.

1-2% Sounds small but take a $10 item. Credit card fee will be 45 cents or so. Ends up being 4.5% ish of that $10. But wait thats not the real percentage either. Costs $7 to buy the item. So really you made $3 before the credit card fees. Now the credit card has eaten up 15% of the profit on that item, leaving you with 2.55. But wait thers more, one still needs to count employee wages, utilities, rent, taxes, etc. Makes the credit card fees even larger compared to the profit.

But wait thats not all either. Dont forget the 25% interst they charge the consumer as well. And those $35 over the limit fees for every sale. Dont forget the reorderign of charges so largest charges are processed first so you get dinged for $35 10 time sin a row for 10 $1 sales. (ive seen this happen to friends, one guy had 15 charges from redbox a few years ago, where the credit card had tacked on a $35 over the limit fee on every single one.)

 

[kojenku]

I don't see any problem with the move. Why would CVS, RiteAid and other stores to be compliant with Apple Pay? Apple needs to work to convince these stores in the first place. I personally do not trust this types of business as it is flaky and downright horrible. I would rather buy Apple stocks than accepting its business practice. There are always people rushing to buy whatever ridiculous idea Apple is boasting, so the safest is Apple stocks, not their products.

 

[hitman40]

Did you guys even read the article? No one is forcing you to use Apple Pay for mobile payments, but they ARE forcing you to use CurrenC. It's a stupid decision. The world has finally reached the era where the idea of "console exclusives" have arrived to mobile payments.

 

[Redraidr12]

I like how everyone reads this article and thinks it's another Apple vs. Google debate...

The 2 or 3 times I've used Apple Pay so far, show me how convenient it is for ME (not to mention supposedly safer). Google Wallet, I believe, is very similar. This is what the article is talking about... the debate about fees is moot; this is a consumer article, not a business article.

 

[marthisdil]

1-2% Sounds small but take a $10 item. Credit card fee will be 45 cents or so. Ends up being 4.5% ish of that $10. But wait thats not the real percentage either. Costs $7 to buy the item

If you're marking up a $7 wholesale item to only $10, perhaps you should find better stuff to sell with a better markup.

 

[HyNrgy]

it's simple.....

Apple came out with something and wants everyone else conform, modify, or adjust to THEIR system/method. Generally when something new comes out like this the NEW thing conforms or makes it compatible with others.

I would support Apple Pay if Apple paid for every business to use it and all the equipment and fees that go alone with it but I don't think they will do that

 

[Musaab]

Toy makers keep playing with your toys and leave real business for growing ups.
Maybe this move is to save US economy. Imagine that the people who bought the new iToy 6 and iToy 6+ rushing to stores to play iBuy anything randomly and iPay for them with my iToy just to try the new iGame. Next time you go for shopping you will not be able to pay with your card. Why because the credit system is over loaded and broken and credit banks bankrupted.

 

[rwinches]

As stated by none12345

It's about card fees, MCX is better for the retailer.

 

[Bloob]

Meanwhile I'll keep using my NFC debit card for small payments (it has a limit)[takes ~1sec], and the chip + PIN for larger ones[takes ~2,5sec], lucky I don't live in the states. Using a phone doesn't really improve the experience.

As for the blocking of NFC -payments, I guess they are within their rights in doing so. If people really care about that, they can take their money elsewhere.

 

[Titillating]

You guys are missing the point here. Apple Pay, say whatever you want about it, was offering the consumers a choice. Nobody was forcing you to use Apple Pay, but Apple was offering an alternative by allowing you to use it. Retailers aren't just blocking Apple Pay, they are blocking all forms of NFC payment systems and pushing their own CurrenC method because it benefits them. Ultimately that leaves you, the consumer, with fewer options and choices. You don't need to support Apple Pay, but you should be supporting the option of having alternative choices.

 

[Anaxamenes]

I still want chip and pin for my credit cards. Apple pay may be convenient at times, however I don't like having everything stored in my phone. Phones get lost, wallets get lost, but if they are separate, then hopefully not at the same time.

To everyone that has to make this a comment on how much they hate Apple, you know we would believe you if you didn't feel the need to post about it on every story that Apple makes an appearance in. Your life revolves too much around Apple if you have to try and convince anyone who read's Tom's Guide why Apple sucks.

 

[evanevery]

How is this any different than a merchant choosing NOT to accept American Express?

 

[Titillating]

How is this any different than a merchant choosing NOT to accept American Express?

That would be the equivalent of them not accepting Apple Pay, absolutely. However, what they are doing is blocking all forms of NFC payment currently available and pushing for their own method. It would be the equivalent of them not accepting any form of credit or debit payments except for their store-issued credit cards. That just doesn't sit right with me.

 

[lorribot]

Many moons ago Microsoft where lambasted by just about every government for leveraging the widespread use of Windows to sell their software, now Apple are trying to use the widespread use of their mobile phones, music and ebook services etc to leverage their banking opperation (lets face it what else are they going to do with all that money but become a bank?) and force retailers to use their system on Apple hardware rather then offer a open system that works across all hardware.

 

[everlast66]

This is not very clever.
So these companies block BOTH GoogleWallet and ApplePay hoping to give advantage to their own payment system in 2015.
But how are they hoping to get their application on peoples phones since Android and iOS hold more than 90% of smart phones is beyond me ?!?