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Even though consumers pay the fee (via higher prices), the various fees come out on someone else's financials.
No.. Visa wants to issue the token for recurring payments themselves. Apple Pay is only really needed for the initial transaction. Reoccurring billing doesn't require Apple Pay at all to remain secure. Once the payment is setup, billing doesn't need to pass through Apple Pay. It can be direct between merchant and the issuing bank.
There will still be a service fee on each transaction, they're just cutting Apple out as the middleman since they really don't need them beyond the initial transaction.

Really, then Apple can just move away from subscription tokens and store the card numbers directly for recurring payment.
 
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No.. Visa wants to issue the token for recurring payments themselves. Apple Pay is only really needed for the initial transaction. Reoccurring billing doesn't require Apple Pay at all to remain secure. Once the payment is setup, billing doesn't need to pass through Apple Pay. It can be direct between merchant and the issuing bank.
There will still be a service fee on each transaction, they're just cutting Apple out as the middleman since they really don't need them beyond the initial transaction.
Whether it’s this or the App Store it all comes down to other companies not thinking Apple deserves a cut of reoccurring payments but Apple execs believing they do.
 
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Which city do you live in?

We've been able to Tap Debit / credit / Apple / Android Pay for years at the majority of locations, shops, restaurants. It's the minority of places that don't accept touchless payments. It didn't take a pandemic. Touchless payments have been common place for years.

One of the West coast cities. It really wasn't prevalent or it was installed but not operational until a couple years after AP came out. I think Whole Foods was one of the first majors to bite. Post pandemic, most food places in my area have wireless payments with touch screen interfaces.
 
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Since Apple blocks NFC access, banks really have no choice but to use Apple's secure payment system and wallet.
Not everybody will agree but I'm quite happy that they are doing this. In my country Google Pay is available but no bank supports it and Samsung Pay isn't available at all. The banks all have their own apps to avoid fees while simultaneously trying to squeeze more money out of their customers. Apple Pay on the other hand is supported by a large number of them.
 
Point your Apple Watch instead :) -- it is the far better way to use Apple Pay -- no Face ID required since the watch was unlocked when it was put on your wrist and remains unlocked until you take it off. Even better, you don't have to go reaching into your pocket to retrieve it since it is already on your wrist.

That said, I agree that the card issuers / banks are just being greedy whiners. I can see the argument that on a recurring subscription Apple is not doing anything more to secure the transaction since the first transaction was already secured with an Apple device, but on the same note banks have been taking huge fees for years on credit card transactions -- so much so that they can offer as much as 2% cash back on all transactions and 4% on specific categories of transactions without losing money. Quibbling over Apple's 5% cut of their 3% transaction fee (i.e.: 5% of 3% is 0.15%) seems silly -- especially when you consider the reduction in fraud provided by Apple Pay.

It's always funny when the middle man complains about somebody being a middle man.
Yes, I use the Apple watch to pay all of the time....unless it's some cheap ass store that does not support "contactless payment".....listen up Homey D.
 
The banks have enough money. Come on now. They make enough profit on interests alone.
Banks are making out like bandits, getting interest off my money but keeping it all for themselves. Many now give customers 0% interest on their accounts. Others are around .02%. Decades ago, they'd give you about 3% or even more, and they worked hard to keep you as a customer. No wonder alternatives like Bitcoin are taking off. People are fed up with being treated poorly by their banks. My bank just sent me an NFC debit card. I know those can be read by someone near you with simple equipment, so I asked them to send me a card without NFC. They refused. So I no longer carry that card around and just use Apple Pay. And if the store doesn't have Apple Pay, I either use my non-NFC credit card or better yet don't buy anything. If the bank listened to its customers instead of its shareholders, maybe things would be better for everyone.
 
Whether it’s this or the App Store it all comes down to other companies not thinking Apple deserves a cut of reoccurring payments but Apple execs believing they do.
Pretty much.. I don't see why Apple should get a cut of any recurring subscription payments as they are no longer required to be part of the transaction. Once the payment schedule is setup, Apple no longer needs to be involved.
 
All these fees get passed on to consumers anyways. I believe Apple and all issuers need to reduce their fees but let’s not pretend the banks or businesses are paying these fees themselves.
Exactly. Now do corporate taxes.
 
Which city do you live in?

We've been able to Tap Debit / credit / Apple / Android Pay for years at the majority of locations, shops, restaurants. It's the minority of places that don't accept touchless payments. It didn't take a pandemic. Touchless payments have been common place for years.
Agreed, but it's more like close to a decade, if not more, than years
 
No.. Visa wants to issue the token for recurring payments themselves. Apple Pay is only really needed for the initial transaction. Reoccurring billing doesn't require Apple Pay at all to remain secure. Once the payment is setup, billing doesn't need to pass through Apple Pay. It can be direct between merchant and the issuing bank.
There will still be a service fee on each transaction, they're just cutting Apple out as the middleman since they really don't need them beyond the initial transaction.
Yet still getting and charging you their fees
 
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I'm honestly tired of everyone taking cuts on the flowing of money - someone always has to pay for it in the end.

If only we all had cash in the bank and could ACH it for FREE. But no, as soon as its a credit card, someone has to pay for the transactions. Visa and MasterCard don't do anything other than pass transaction numbers around, yet make 3%. Apple's 0.15% seems more reasonable, though they too are only passing numbers back and forth to facilitate a transaction they had nothing to do with.

ACH isn’t free, it’s slow, it’s batched, it lacks modern Anti Money Laundering mechanics, it’s domestic-only (including any worldwide variants like Canadian EFT, BACS, Autopay…), it has terrible reporting/reconciliation for the one sending money out, and it’s being replaced by RTP for basically everything but direct deposit.

That, and Visa and Mastercard provide a ton more than pass transaction numbers around…
 
Banks, Apple, Visa - all of them are soulless, eternally hungry, corrupt corporations that will do anything for the money.
We shouldnt side with anyone on this matter as long as our fees dont increase and it seems they wont change regardless.
 
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Corporate taxes are applied to profits. They are not part of the cost basis (COGS) of products and services, so they don't get "passed on" to the consumer. Don't argue with me, that's GAAP.
And how exactly do you think they pay those taxes to achieve profits, yep the consumer.
 
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