Does Apple or Visa charge a fee for debit card use on Apple Pay?

Discussion in 'iPhone' started by munkydust, Nov 1, 2014.

  1. munkydust macrumors member

    Joined:
    May 2, 2010
    #1
    Haven't been able to find an answer on this. If I register my bank debit card with Apple Pay that has a Visa logo on it, is anybody getting fees paid to them for its use? If so, is it similar to credit card fees?
     
  2. muggerfugger macrumors regular

    muggerfugger

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    #2
    I think the fees are passed on to the bank/issuer.

    Not the store or user.

    http://www.cnet.com/news/apple-pay-to-generate-fees-from-banks-not-merchants-report-says/

     
  3. Alimar, Nov 1, 2014
    Last edited: Nov 1, 2014

    Alimar macrumors 6502a

    Alimar

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    #3
    Sorry. Wrong response on my part.
     
  4. nj1266 macrumors 6502a

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    Long Beach, CA
    #4

    No. I use my BOA Visa debit card for ApplePay and it is used as a credit card. All is fine.
     
  5. JayLenochiniMac macrumors G5

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    #5
  6. munkydust thread starter macrumors member

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    May 2, 2010
    #6
    Sorry, I was trying to figure out how to word this properly. I know there are transaction fees from CC use and Apple takes a cut of that and the consumer is not paying those fees.

    My question was are there transactions fees for Debit cards as well? If so, are they lower than CC transaction fees?
     
  7. WolfSnap macrumors 6502a

    WolfSnap

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    #7
    I've never paid a penny extra to use a debit card or credit card. Never, ever.
     
  8. JacksTLOS macrumors member

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    Aug 31, 2011
    #8
    Yes Debit cards have their own fee that is charged to the merchant. Usually it is lower than the standard credit card fee.
     
  9. munkydust, Nov 1, 2014
    Last edited: Nov 1, 2014

    munkydust thread starter macrumors member

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    May 2, 2010
    #9
    Right, I still must not be wording this right. I'm asking if there is a fee charged to my bank from Visa if I use my Debit card via Apple Pay and if Apple gets a cut of that.

    ----------

    Ok, that's what I was assuming but I wasn't sure. Wonder how much of a difference?

    Today, I rarely use my debit card because of the lack of protection that you get from using a credit card vs a debit card (and I get cash back from using my credit card).

    With the security of Apple Pay, I'd be more willing to use my debit card. Really, the only reason the consumer should chose CC over debit would be for the cash back rewards a CC may offer you.

    Furthermore, I was thinking about this because of the CurrentC thing and then complaining about the high fees that retailers have to pay for CC use. I think this would be lessened some by the security of Apple Pay and the increased use of debit cards for payment because of it.
     
  10. ElectronGuru macrumors 65816

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    Location:
    Oregon, USA
    #10
    CCs charge fees based on %, so the larger the purchase the larger the fee.

    DCs charge fees based on number of transactions, so the larger the purchase the smaller the fee. Unless you buy it a bunch of times over several transactions.

    In both cases, banks are charging the merchant and in both cases, apple is taking a cut of this fee. Normally this would mean paying more somewhere but currently banks loose huge cash every year to fraud. Apple should reduce these losses more than enough to cover their cut.
     
  11. lordofthereef macrumors G5

    lordofthereef

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    Boston, MA
    #11
    Here's a stupid question that I just thought of...

    So Apple charges .15% of the total to the creditor/bank. What if the bank doesn't agree? What is it that essentially forces that bank to accept the fact that you are using Apple Pay as a means of payment?
     
  12. ualdayan macrumors newbie

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    Oct 2, 2014
    #12
    If the bank doesn't have an agreement in place with Apple then the Passbook application won't let you add their card (it just tells you that card is unsupported.)
     
  13. JayLenochiniMac macrumors G5

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    New Sanfrakota
    #13
    If the bank doesn't agree, it won't be on the list as one of the banks that officially support Apple Pay and any cards by that bank won't work with Apple Pay.
     
  14. lordofthereef macrumors G5

    lordofthereef

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    #14
    Aha! That makese sense. Thanks for the quick reply. :)
     
  15. From A Buick 8 macrumors 68040

    From A Buick 8

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    #15
    Sure you do, everyone does.
     
  16. Roikins macrumors newbie

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    Oct 23, 2014
    #16

    I wouldn't agree with that, CC fees are bigger if your transaction amount is higher.
    Merchant signs agreement depending of what kind of business he's doing, card present or not, and how many chargebacks he had in past, and all those factors are how high processing fee merchant is paying , that is stated in agreement. At the end of the month there would be additional fees added for non qualified transactions, or the customer is enrolled any kind of reward program. All these years merchant has to pay those extra fees out if he's pocket, but recently Visa and MC allowed to pass those fees back to customers, like increased product price and etc
     
  17. Zxxv Suspended

    Joined:
    Nov 13, 2011
    Location:
    UK
    #17
    The long game. They are playing the long game. You've probably heard the conspiracy theory that banks want everyone to have a chip in your hand that you use to pay, they can switch on and off. Thats the game they are playing. Its also in the bible 666 mark of the beast. No one can buy or sell, trade, unless they have this mark. Apple pay is a step down the road. All sing and rejoice :D
     

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