CVS Stores Reportedly Disabling NFC to Shut Down Apple Pay and Google Wallet

[doelcm82]

Wow. You're going to take your business elsewhere if you can't use a method of payment that didn't exist in the past anyway? It's no longer possible to pull a debit card from your wallet? What has happened to people?

People were looking forward to the extra security. CVS said "no extra security for you. We're turning off that feature."

 

[qtx43]

CVS is NOT creating a CVS only payment network. CVS is a part of Merchant Customer Exchange, which includes a long list of retailers, that is working on rolling out its CurrenC NFC payment processing system. CVS and other merchants like what they see and want to use that standard.

Technically you're right. It's not a CVS only payment network, for CVS it's CVS only, for Dunkin' Donuts it's Dunkin' Donuts only, etc. From MCX's website:

CurrentC will offer customers the freedom to pay with a variety of financial accounts, including personal checking accounts, merchant gift cards and select merchant-branded credit and debit accounts. Additional payment options will be available in the coming months.

Do you think giving every individual store you shop at direct access to your bank account is a good idea? Or do you carry around dozens of credit cards, one each for each store you shop at? The only reason they're doing this is to push for personal information. With Apple Pay and Google Wallet, or any other NFC payment they don't get to track you. I don't like google, but at least with Google Wallet it's only google keeping all your private info on their servers, and not every company you've ever shopped at.

 

[Wurm5150]

...and the rest of the world carries on happily using cash and credit cards, with no issues.

Talk about making a simple bartering system overly complicated.

#1 Swipe card

#2 Enter PIN

#3 Walk away

Why is that complicated?

Target, Home Depot, Staples, United Parcel Service, Michael’s craft store, the Albertsons grocery chain, Sally Beauty Supply, Dairy Queen and Kmart..totally agrees with you..

 

[AllieNeko]

Is this happening because the nature of Apply Pay prevents tracking of customer purchasing trends?

If you visit a shop every day and buy a different item, Apple Pay generates a new code with each transaction, the vendor can't get any of your credit card details, so doesn't know it's you - which is bad for brick and mortar stores as they can't track purchasing habits...

Or have I got it wrong?

This was cited as a reason why here in the UK, our Undeground/bus/tram public transport networks can't use Apple Pay, since the system needs to know when the same person has travelled more than once so certain discounts/price caps can be applied.

I'm not sure this is true. I know it was suspected but I think the PAN token might, in fact, be static. Not the real number, but not changing every time. The transaction code that keeps NFC secure and not copyable, is, of course, constantly changing.

 

[BoulderAdonis]

these are multibillion dollar companies they don't care about if you shop there or not

Their shareholders are going to care when the quarterly numbers come in.

Trust me - these companies are going to care.

Just like every carrier cared when ATT had an exclusive w/ Apple and other carriers had increased churn rates.

These "multibillion dollar companies" are going to care alright.

 

[Menel]

My Obamacare mandated pharmacy, CVS, is willing to throw all NFC users under the bus immediately, in hopes some day a year or so in the future, a vacuous, vaporware product may be available.

There is no discussion about how inconvenient it will be as compared to Apple Pay which works right now everywhere, with only your cell, and no physical card specific to each and every retailer, the very point of NFC.

I can't switch pharmacies due to the company policies of the carrier I am mandated to use by the Feds.

Rocketman

Interesting, as my Obamacare/corp provider rejected CVS, Publix and a few others this hear.

Push Walgreens instead... But we are also a ApplePay launch partner... So maybe not so unexpected.

 

[whsbuss]

...and the rest of the world carries on happily using cash and credit cards, with no issues.

Talk about making a simple bartering system overly complicated.

#1 Swipe card

#2 Enter PIN

#3 Walk away

Why is that complicated?

So simple. Had to get a new card after Target was hacked. Then just had a new card issued for shopping at Home Depot. Yesterday I got another notice from my bank about having another new card sent for shopping at Staples.

THAT'S the problem.

 

[cmaier]

Apple has been able to collect 30% for in-app purchases because the money goes through their systems. Apple could refuse to approve an MCX app, but I think MCX actually works by sending a text with a QR code to scan, bypassing Apple. Apple could disable all text messaging but that wouldn't go over well.

MCX's system will most likely fail anyway, so Apple's best bet is to take the higher ground.

There actually is already an app (beta). If they want to rely on text messages instead, they already lose.

 

[sziehr]

This is very true they want to know what i am buying and with a token payment they have no way to track me. This is great for me and not great for there marketing dept. I do not understand why they are cutting it off i mean they still force you to use there CVS card to get the price that is not sky high. When apple pay also supports those maybe they will come around.

 

[gauchotee]

Oh well

I guess I'll be driving out to walgreens when I have a CVS a block away.

 

[BoulderAdonis]

What percentage of shoppers, at Rite Aid and CVS, actually carry iPhone 6s?

Haha ... RedOrchestra, is that you? We should become friends.

 

[doctor-don]

Since I don't own an iPhone 6, all this is ridiculous sniping.

And with microchips in my credit cards, I have yet to see a terminal at a POS that will utilize those microchips.

 

[cmaier]

Not true--they pay fees to their merchant services provider for processing Apple Pay transactions. They just don't pay anymore than they would if a traditional card was used.

And the merchant services provider ALSO doesn't pay apple. The issuing banks do.

So, again, the merchants don't pay one dime.

 

[Menel]

I'm not sure this is true. I know it was suspected but I think the PAN token might, in fact, be static. Not the real number, but not changing every time. The transaction code that keeps NFC secure and not copyable, is, of course, constantly changing.

Does not change EVERY time. But its not static either. Ive not seen clear information on when it changes.

 

[peterh988]

All of this is just plain stupid. Many to most of these businesses also have their own credit card you may use to pay and they don't lock out all the other brands of card for payment.

For many years here in the UK, one of our biggest stores, Marks & Spencer, didn't take credit cards, you either had to use cash or their own store card. I remember leaving £300 worth of purchases on the counter because I was unaware they didn't take Visa, and didn't want to spend 20 minutes signing up for a store card I didn't want.

They eventually changed that when profits started to dip, and the new boss came in and was amazed they didn't accept such a convenient and widespread form of payment.

For me, it's all about the connivence rather than an Apple loyalty. Twice in the last week I've turned down store reward cards, not because I don't want them, but because I don't have any room in my wallet for more plastic cards. I told them, and showed them I'd have it if it was a digital passbook card, wether that information will make it back up he chain I don't know.

Making it simple and convenient for me to use is where the answer lies, if you want me to spend my money with you.

 

[Nanotyrns]

hootnanny

What percentage of shoppers, at Rite Aid and CVS, actually carry iPhone 6s?

And how fast does word travel here where you can use Pay?

And where you can't?

That's the impact it will have. At some point it will start circulating widely that some stores that could support Pay with no effort at all have chosen to deliberately block it.

The optics on it are pretty bad when you have to admit you are blocking a competing payment system but don't have your way more awesome/easier/more secure/not Apple system in place yet and no firm launch date.

 

[RedOrchestra]

Their shareholders are going to care when the quarterly numbers come in.

Trust me - these companies are going to care.

What percentage of shoppers at those 2 stores are carrying an iPhone 6 ... give your collective heads a shake.

And out of 350 million people, how many have an iPhone 6?

 

[Tubamajuba]

Nobody knows the terms but there's no indication Apple is screwing anyone over. Why would they when they want retailers to adopt Pay?

The bottom line is this- NFC was great before Apple Pay, and Apple was so far behind the times because they didn't have it. Now that Apple has a chance to make NFC mainstream, many of the same people that were shouting the praises of NFC are suddenly sympathetic to companies that are disabling it.

That is to say, some people would rather see NFC fail than see Apple succeed with it. Truly, truly remarkable.

 

[macfacts]

... Honestly, isn't Apple helping them recover the investment they made in moving to NFC terminals?

It's honestly baffling. Maybe it's a sign of yet another industry that just doesn't understand how much impact Apple has when it gets involved.

Apple isn't paying a penny for the NFC terminals in stores. The stores themselves are paying for those new NFC terminals because of new rules regarding fraud liability from the credit card companies.

Apple should have given some incentive for stores to use apple pay. Right now with apple pay, apple gets a cut of the sale. Rite aid and CVS wants to be the company that gets that cut. Nothing wrong with a company wanting to make more money.

 

[cmaier]

I'm not sure this is true. I know it was suspected but I think the PAN token might, in fact, be static. Not the real number, but not changing every time. The transaction code that keeps NFC secure and not copyable, is, of course, constantly changing.

The static token is merely a seed to the hash function. No static identifier is ever transmitted.

 

[Moto G]

To all these people who are "protesting" and feigning boycotting of the stores which have decided not to support their pet brand's payment system:

#1 Grow up.

#2 No - seriously, GROW UP.

#3 How did you pay them BEFORE "Apple pay" was revealed? Ah yes - the previous methods... so use those.

#4 Stop being such drama queens - they don't care - they're not going to go through their POS audits, track you down and send you a begging card with money off vouchers and a "please come back to us" letter.

Talk about internet drama... just get over it and default BACK to how you USED to pay.


Waiting for all the "outcry" from the internehtz when the first report of Mapple Pay being hacked, is announced. It's GOING to happen, whether sooner or later. LOL.

 

[cmaier]

Apple isn't paying a penny for the NFC terminals in stores. The stores themselves are paying for those new NFC terminals because of new rules regarding fraud liability from the credit card companies.

Apple should have given some incentive for stores to use apple pay. Right now with apple pay, apple gets a cut of the sale. Rite aid and CVS wants to be the company that gets that cut. Nothing wrong with a company wanting to make more money.

Lol. The retailer already gets a cut - they set the price higher than their cost of merchandise.

 

[Menel]

Apple will probably get 0.15% per transaction made, so shut up if u just wish to defend Apple no matter what. I like Apple, that's why I'm on this forum, I only pointed out why retailers would be reluctant to use Apple Pay. If retailers can develop an 'in-house' mobile system, at least they don't need to give that 0.15% to Apple.

Retailers dont pay extra.

The .15% cut cones from bank's cut the retailer has always paid.

 

[dazz87]

...and the rest of the world carries on happily using cash and credit cards, with no issues.

Talk about making a simple bartering system overly complicated.

#1 Swipe card

#2 Enter PIN

#3 Walk away

Why is that complicated?

Apple fanboys are crazy. Dont be surprise if some will hire lawyers and try to sue CVS and Rite Aid because they do not accept Apple play.

 

[sziehr]

So simple. Had to get a new card after Target was hacked. Then just had a new card issued for shopping at Home Depot. Yesterday I got another notice from my bank about having another new card sent for shopping at Staples.

THAT'S the problem.

I got hit with the home depot hack fried two of my cards. It was the first time it hit me but it was so rather annoying so any way i can shield my account extra i will do it. I was hoping that 2015 liability will help sway some of these people once they get hit with a breach on there current C system and end up having to pay for all the fraud.