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

[MonstaMash]

CVS ignoring an industry-backed NFC payment system is bad news.

This affects a large number of devices, both on the Apple (Apple Pay) and Android (Google Wallet) fronts.

The payment system, CurrentC, that CVS wants to use will be capturing user information. CVS should offer both, NFC and CurrentC. It is clear that other motives are in place for them to blacklist NFC.

Glad consumers are voicing their opinions.

 

[Skyone22]

I find it ridiculous that people are so emotional about this that they will refuse to shop at CVS.

Are you that tied to your iPhone and it's brand new purchasing capabilities that now you can never ever shop at a place that doesn't support that payment.

Seriously?

Wow.

Sorry will not be shopping there either anymore.

 

[Rogifan]

So let's see...some people ditched their iPhones because they wanted a bigger screen, or wanted more customization with the OS. Some people no longer own Macs because they don't like the lack of upgradability in certain models. But yet if someone boycotts a retailer because that retailer doesn't support a payment method they prefer that's wrong and these people are childish and immature? I'm sorry but consumers have the right to shop wherever they want, own whatever products they want and boycott whatever retailer/brand they want to. It doesn't make them childish or immature.

 

[Statusnone88]

Okay, they still take regular credit cards - right? Everyone use your AMEX card when buying anything at CVS or Rite aid. It has the highest transaction fees. Which is what they are trying to avoid.

This is so freaking stupid. There are 0 transactions fees to the merchant when using Apple Pay. The banks have the only fees.

 

[Nanotyrns]

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.

No, Apple is not paying for any NFC terminals. But if the introduction of Pay brings in more customers because they choose to patronize those stores that support it, it means increased margins for retailers. And then someone somewhere deep in the company that had fight for the capital to change the POS infrastructure to support NFC some time ago thanks their lucky stars that a company that has the ability to create a product that sold millions and millions of units the first weekend of availability just made it all worthwhile.

You want to give people a reason to shop at your stores besides easy access to knock-off colognes and post cards. Rite-Aid and CVS just gave a lot - a lot - of people a reason not to shop their stores. Last time I checked (yesterday), Walgreens had plenty of knock-off CK One and lots and lots of post cards. And if you ask nicely, "marital aids".

And they support Pay.

 

[namtrig]

You're right. 10 million in the first weekend alone is *nothing*. Doesn't even register on a graph. Lol. And that was the first weekend. And it's been how many weekends since? And lead times for the phones have only gotten longer. And Apple Watch will enable all the pre-iPhone 6 phones to use Apple Pay as well?

One of us should park it. But, I think you're somewhere in the back 40. Paying for things w/ sheep, goats, cows, and chickens .... I'll write you a letter and *mail* it.

Additionally... Apple iPhones represent 41% of market share. With an average refresh cycle of 2 years, a good portion of that 41% will have phones capable of participating in Apple Pay by this time next year.

 

[xVeinx]

This is all about the percentage Apple wants on every transaction v. MCX.

No, it's about the ability to have customer data that can be used for marketing, to find ways to make it easier for people to buy items at the respective stores (Think Amazon one-click), and so they can resell that data to companies making the products for marketing purposes (even if indirectly). The retailers aren't interested in making it easy for you to buy things. They are interested in making it easy for you to buy things AT THEIR STORES.

 

[Keirasplace]

I think we all need to look beyond this individual battle/issue and look at the much bigger fundamental war that's about to be waged.

This isn't about CVS not liking Apple Pay or iPhone 6 users. Frankly, it's not even really about Apple at all.

The whole Merchant Customer Exchange initiative is about trying to cut the credit card companies and the hundreds of billions spent on transaction fees out of equation.

The thinking is that if they move to an MCX barcode system (via the CurrentC app) that's linked to your ACH bank card or store card number they save money on every transaction.

The advantage to them, in addition to saving billions in transaction fees is they get to harvest customer data on every sale. Similar to the 'reward card at the grocery store', Target, Best Buy Walmart, CVS and other members would be able to gather (and potentially share) data on all of their customers.

They will likely link some sort of discount/rewards program to it. It may be individual item discounts like grocery stores. It could be a flat discount (3% of purchases) or even a cash back program. Remember, they are going to save potentially billions on transaction fees..so giving some of that money back is a smart investment to encourage use.

The big battle that's going to be waged will be on privacy/security. I expect Visa/MC/Discover/AMEX and now Apple to team up on the front of EMV and Apple Pay solutions allow for anonymous transactions and are more secure than CurrentC. They'll especially play up the idea that your personal buying habits are being stored, shared and shopped. They'll also push the risk of potential exposure of your personal bank account info and question what fraud liability is in place. When debit cards first hit the scene, people were very wary about it being directly tied to their checking account. Limiting fraud liability helped people get over that hurdle.

As a customer I have mixed feelings. We all pay a higher cost for goods/services to mushroomed use of cc/debit cards. But I question how much savings we'd really see under an alternate system and question the privacy/security protocols that would be put in place.

Considering how insane the charges are on Store credit cards and the poor IT and security infrastucture they all have, do you think you' or even them will save anything in the end? Their system is way way slower for the foreseable future and they basically have to build up a concurrent system were one already exists, that costs money too.

Banks already have all my financial info, that's why paying using debit wasn't and issue, I'm only really dealing with the bank. There is no chance on earth people will start trusting a group of upstart wanabe bankers with their bank account info or SSN.

This is all about keeping track of your purchuses and NOT about saving money. The stores are certainly not going to save money at all in this whole business in the end even if a lot of people started using their system.

 

[avanpelt]

This is disappointing of CVS. But I did read that the banks pay Apple a few coins per transaction...and who knows if that gets passed on to the stores.

Does anyone know if companies that use MCX won't have to give a portion of the transaction fee to MCX? MCX has a careers listing on their website so those people have to get paid somehow. MCX is a business. They're not setting these systems up for free out of the goodness of their heart.

 

[doelcm82]

Naturally I must be a shill because I find yours and other posters like you ridiculous for being so hot over the issue.

I'm not hot. CVS will do what it thinks it needs to do, but if it doesn't meet my needs I'll go somewhere that does.

 

[Tubamajuba]

This is NOT intended to be rude or an act of arrogance to the cashier. (Their stock person who has to restock the rejected merchandise will still be paid her wages.) This is to send a general protest message. Her manager will note the customer dissatisfaction of the protesting customer over not being able to use this convenient and secure method of payment afforded by Apple Pay, and hopefully transmit these "incidents" to higher management which will hopefully even elevate all the way up to the headquarters suite. Many people purchased their iPhone 6 for this feature of secure and convenient shopping. And CVS and Rite Aide are prominent retailers, and thus should think twice about the message their intransigence is sending to the marketplace.

I completely understand that the intention behind such an act isn't to be rude to store employees- it's to provide momentum to Apple Pay. But take a second to look at it from the store's perspective- a guy comes in, buys a load of stuff, then refuses to pay for it. Not because he isn't able to, but because he won't. Doesn't matter what the reason is, it's not going to be a pleasant experience for anyone. You can hope that the takeaway will be "We should support Apple Pay", but you can't count on that. They're human beings just like we are.

For everyone in this thread who cannot seem to understand why anybody would boycott a store that decides to turn off Apple Pay, I have two words for you:

Identity theft

Once you have to deal with that once, twice, or three or more times, you might be a little more understanding of why people get a little hot under the collar when they are not able to use a far more secure method of payment than swiping a credit or debit card.

And yes, I have just written to CVS to explain to them that I will be moving all of my prescriptions and business over to Walgreens.

Nailed it.

 

[caesarp]

This is so freaking stupid. There are 0 transactions fees to the merchant when using Apple Pay. The banks have the only fees.

You didn't read what I said. I'm trying to screw over CVS and rite aid by saying use your plastic AMEX. Since it costs them more.

 

[Cinemagic]

CVS used to be a hero for their abolishment of cigarettes. But their blocking Apple Pay is sending me to Walgreens.

 

[mantan]

This is so freaking stupid. There are 0 transactions fees to the merchant when using Apple Pay. The banks have the only fees.

You're missing the point. The credit card processing fees are still being paid. The credit card companies just opted to give them a cut. Apple is being used as a pawn...OK maybe a bishop or knight, in the bigger battle being fought to remove credit card companies out of the picture and work directly through a CurrentC app tied to your bank account.

 

[doelcm82]

Fess up - you just want another reason to flash your 6 ... fanboys love doing that. I'll bet you carry that 6 in your hand all day without a case and were disappointed that the Apple logo, in the back, didn't light up.

Nah. I stopped doing that years ago.

 

[Skyone22]

This is so freaking stupid. There are 0 transactions fees to the merchant when using Apple Pay. The banks have the only fees.

I really don't care who pays who but I will be searching out the more secure apple pay retailers.

 

[devsfan1830]

Okay, they still take regular credit cards - right? Everyone use your AMEX card when buying anything at CVS or Rite aid. It has the highest transaction fees. Which is what they are trying to avoid.

That's what I don't get. If the MCX solution is to avoid paying transaction fees, a fee that i assume is the same no matter if its a swipe or NFC tap as long as its tied to a CC, then presumably all these stores are just going to stop taking credit cards altogether? They really think people are going to just switch to cash or MCX's app and ditch CCs? A store that doesn't take a credit card is doomed to fail this day and age. If the MCX app will allow to link credit cards, then they haven't saved anything. All they do is gain yet another way to gather customer data. Not to mention many of those stores have been publicly outed as being utterly incompetent when it comes to keeping data secure.

 

[Keirasplace]

Looks like HD DVD vs BLURAY all over again.

Now it's Mobile Wallet vs Google Wallet vs Apple Pay.

There is no Google Wallet VS Apple Pay, if one works, the other does too. They may compete in the sense, who is used the most, but that's it, one will not eliminate the other.

 

[MyopicPaideia]

For everybody whining already, perhaps it would be nice to think about why they might do this? It's not like this is a service Apple is providing for free. Just because you don't have to pay for it doesn't mean somebody isn't. I don't know what Apple takes from these transactions and it is certainly not unheard of to have higher rates for those that are not affiliated with a certain program, so it could very well be that paying through Apple Pay costs them all or most of their margin.

Now I don't know about you guys, but if I had a company and customer convenience like Apple Pay cost me my margins I'd cut it off faster than you can say Apple Pay. None of you guys work for free, and neither should shops.

As has been noted several THOUSAND times here - there is no additional fee for the merchant for an Apple Pay transaction. It is even given the lower fee status due to qualifying as a "card present" transaction. Merchants pay nothing to Apple. Zero.

 

[dazz87]

CVS used to be a hero for their abolishment of cigarettes. But their blocking Apple Pay is sending me to Walgreens.

This fanboy comparing removing of cigarettes vs an app........

 

[CoilTap]

Sure... Let me use the quick efficient payment method like Apple Pay and then dig through my wallet for their loyalty card. They can't even track you via the credit card/debit card numbers. And before you say... well people can always use cash or checks, perhaps you should look into the percentage of people who use cash vs credit cards. Don't fool yourself... It is completely about the tracking!!!

Wut?

It always amazes me how people on the internet go into a nonsense tirade in response to somebody. Seriously, dude, you're talking about things I wasn't making any comment on whatsoever.

Of course loyalty cards are about tracking. It's the price of the discount. It's up to you whether using the loyalty card is worth the price both in time and being tracked.

 

[bushman4]

Big mistake by CVS Their earnings aren't great to begin with
Time to shop where convenience prevails like Walgreens or Duane Reade. CVS prices are nothing special

 

[mantan]

That's what I don't get. If the MCX solution is to avoid paying transaction fees, a fee that i assume is the same no matter if its a swipe or NFC tap as long as its tied to a CC, then presumably all these stores are just going to stop taking credit cards altogether? They really think people are going to just switch to cash or MCX's app and ditch CCs? A store that doesn't take a credit card is doomed to fail this day and age. If the MCX app will allow to link credit cards, then they haven't saved anything. All they do is gain yet another way to gather customer data. Not to mention many of those stores have been publicly outed as being utterly incompetent when it comes to keeping data secure.

I don't think it's about removing credit cards as an option. It's trying to corner the market on smartphone convenient transactions. By blocking NFC transactions, they theoretically can limit smartphone transactions to MCX.

Credit card/debit cards and cash will always be an option.

 

[caesarp]

That's what I don't get. If the MCX solution is to avoid paying transaction fees, a fee that i assume is the same no matter if its a swipe or NFC tap as long as its tied to a CC, then presumably all these stores are just going to stop taking credit cards altogether? They really think people are going to just switch to cash or MCX's app and ditch CCs? A store that doesn't take a credit card is doomed to fail this day and age. If the MCX app will allow to link credit cards, then they haven't saved anything. All they do is gain yet another way to gather customer data. Not to mention many of those stores have been publicly outed as being utterly incompetent when it comes to keeping data secure.

Exactly. Most people will use credit card , not some store centric app. So what are they really doing other than stopping NFC. I bet NFC and apple end up suing MCX.

 

[jc73300]

We all need to start filling up shopping carts at these stores and when they refuse to allow any form of NFC payment just walk out without completing the purchase.