Rite Aid Disables Apple Pay Support After Initially Accepting Payments

[number9]

I rather shop at CVS anyway.. Worked every time thus far and all their stores have new payment readers.

wouldn't count on that for long. CVS is one of the partners for MCX's CurrentC program. As are stores like Gap, Banana Republic, Kohls, Dick's Sporting Goods, Wendy's, Michael's, Chili's, Sears, Sam's Club, Dunkin Donuts and ExxonMobil.

Hopefully they're smart enough to accept all NFC payments (CurrentC isn't NFC based, it's app based, where each store has a bar code or QR code like in Passbook that you scan, much like Starbuck's own payment system). Target is interesting because they support TouchID and Apple Pay for in App purchases, but won't support them in store, even though it costs them nothing. All of these stores will have to support Chip-and-Pin payment with cards in the US by 2016, or else they are fully responsible for any fraudulent charges on your account.

 

[saving107]

Merchants aren't being charged, the deals are with the banks. Merchants pay the banks a fee already for using their credit services, the banks then pay Apple a percentage whenever Apple Pay is used.

You do know that the the credit card companies pay this fee, right? The retailers pay the credit card companies like they always had before.

That comes out of VISA's cut. Not the retailers'.

The merchant doesn't pay the fee to Apple. The issuing bank pays it.

There is no difference in fees for the merchant.

If I'm not mistaken, those payout deals were with the financing banks, not individual retailers to give Apple the money. I'm not aware of merchants having to shell out for this.I was under the impression that merchants supporting Apple pay was for advertising, and probably (and I'm speculating here) those merchants who do not use competing services like isis for instance.

No. That is 100% wrong.
.

Seems Rite Aid actually turned off NFC completely. Retailers don't pay anything extra when acceptong Apple Pay, it is excruciating to continue to see people spreading that false information.

Apple's 0.15% comes directly out of the standard 1.5-2.5% transaction fee retailers pay to Visa, Mastercard, Amex or Discover.

Apple isn't taking money from the store. That would require they know where we shop, which they do not.

The retailers don't care what apple gets paid because it has no impact on them. Apple is not paid by the retailers and no fees are passed to the retailers. Retailers see no difference between contact and contact-less payments.

Apple pay has nothing to do with the resellers cost. They pay their typical bank fees and processor fee's… Apple is getting their cut from that.

This is just stupid move by Rite Aid. I'm guessing they will reverse this decision within a week. They have no reason not to take other than CVS is Apple launch partner.

I'm confused still, so you're all are saying the retailer doesn't pay Apple??????

/sarcasm

 

[NachoGrande]

I couldn't help but read that and hear my 72 year-old father's voice.

Does your father sounds like a woman? you don't think women can use iPhones or talk super macho Apple tech talk?

 

[ericinboston]

How did Apple mess up this one?

Because it's called "Apple Pay" and not "<some other name here> Pay".

I've said this 100 times before...Apple is plastering the Apple name and logo ALL OVER THIS technology/system/whatever. Apple will be pointed to for almost all blame...regardless of who's fault it REALLY is in the background...which a)most people won't wait around to find the true answer (and it still might be Apple's fault!), b)people won't care because, well, it's still a system/company that Apple chose to partner with and plaster the Apple name all over.

The ship is sinking rather fast with Apple Pay. In theory it's a nice business model. In practice, it's quickly becoming a mess.

 

[s8film40]

With all the support that ideas like that have received on early pages of this thread, I wouldn't be surprised if some people are going to do exactly this.

Can't be too careful...

Yeah that's probably true. I honestly wouldn't go out of my way to do something like this. Best thing to do is to just stop shopping there all together. I can respect a business waiting to make a decision to implement new infrastructure but specifically taking an option away from customers tells me all I need to know about that business, whether I want to use Apple Pay or not.

 

[apple.pseudofan]

The post I replied to recommended walking into a store, purposefully filling a cart with items, and abandoning it at the check stand. Guess who has to re-shelve all that stuff? Ever worked retail before?

And it's not like they won't accept your credit card. I could understand leaving the store if that was the case. But it's not. They'll accept your card, but they're not equipped to accept the fancy technology that spares you the terrible burden of removing that card from your wallet.

How is this even remotely worth complaining about?

This issue is that Apple has now come up with a secure method for using credit/debit cards that does not expose numbers. Having had my debit card number stolen in BOTH the Target AND Home Depot hacks, this is very important to me. And I'm someone who almost exclusively uses cash. I just happened to use my debit in both those instances. For those instances, I want a secure solution. I don't want my data in a cloud. I don't want tracked. I just wanna make a simple, secure purchase. The issue is that the tech is here, the companies have terminals that are capable of supporting it and are choosing to make the purchasing environment less secure because they are putting themselves first. I unfortunately have a chronic disease and visit pharmacies regularly. I'll be sticking to CVS and/or Walgreens.

Also, I don't think this MCX and  Pay are mutually exclusive. I saw both Target and CVS on the MCX website and CVS definitely accepts  Pay (I've used it) and Target is an announced partner (though my local store didn't have contactless terminals yet).

 

[centauratlas]

I had to pick something up at the store this week and was right by a Walgreens and a CVS (they are very close to each other - no Rite Aids around here). When there was no apparent difference, Apple Pay tipped the scales. Will it every time? Perhaps. But it was easy, and if enough places used it, I would leave most of the physical cards at home and thin out my wallet which is a big incentive. Plus not have my credit card details at Home Depot, Target etc.

It was funny when the cashier said, "That's the first time I've seen anyone do that, cool!"

I went to Walgreens yesterday and bought something just so I could use ApplePay. Today I read Rite Aid was taking it and was about to go until I came upon this thread. But I also read CVS takes ApplePay, so I'm going to buy something there now. There are a lot more CVS stores around here than Rite Aids or Walgreens anyway.

Rite Aid's problem is not about fees or Apple, but as the article says they signed up with a competing pay service that probably has a provision saying not to allow competitors services. It's the same reason WalMart and Best Buy don't take ApplePay. I'll bet the second their contracts are up, they will go with it. Let's hope it is soon, for their sakes.

A tip I discovered, if you want an app that shows where contactless payments are accepted, try "MasterCard Nearby".

 

[stewy]

Every time I see a comment like "I won't be shopping there if they don't have Apple Pay"

 

[Biedz1216]

Haha. Looks like we should be calling our retailers franchise before we just assume they accept apple pay because as I said companies can opt out and well technically that means other retailers have opted in.. But no nooo it's all NFC I'm just a moron.


No no fifty messages attacking me this time?? My email thanks you. As I wish I didn't have to turn off notifications because before that 40 page 8.1 commentary couple days ago I loved engaging with the other users here we all share one innate feeling the love for technology combined with a passion for apple. Its just frustrating when I suggested this could happen immediately I was crapped on because I said companies can specifically deny and or opt out of apple pay therefore the retailers accepting it are opting in to support the feature that is all I said and it was like I was made out to be talking out of my ass when unfortunately my own to be unnamed company has been discussing specifically denying apple pay the way rite aid just did and I'm doing everything in my power to show them how brilliant apple pay is and how we need to value customer cc security and this is the first major step at doing so.

 

[Jeans89]

Most of you should go immediately to RiteAid and buy some Prozac.

 

[Shin3r]

Please, everyone get over yourselves for saying, "Guess I won't be shopping there..."

If it's around the corner and you need to pick something up, you sure as hell will be shopping there in a few weeks.

You are entitled to your opinion I suppose, but it's misplaced. Why you think I have to get over myself for being a consumer who votes with his wallet, which is how the Free Market should work, is beyond ridiculous. Picking something up in the Oh-crap moment I forgot the sugar and need to have these cookies baked before people come to visit is very different from my regular just stopping, and/or picking up my Rx or a few items that I don't want to wait in line at Save-mart for. I have other places within just a couple blocks that will now get my business. Because I, the consumer, want them to lose as much incentive financially to be able to refuse my service.

It's people with your thought process that have contributed to the ability of big corporations to wield power over smaller businesses. It even pits medium sized businesses against very small business. Because control is power, and I believe that most of it should lie in the consumer's hands, not the other way around.

 

[Dekema2]

Rite aid, lol. Never shop there, never will now. Walgreens is where it's at.

 

[Menel]

The post I replied to recommended walking into a store, purposefully filling a cart with items, and abandoning it at the check stand. Guess who has to re-shelve all that stuff? Ever worked retail before?

And it's not like they won't accept your credit card. I could understand leaving the store if that was the case. But it's not. They'll accept your card, but they're not equipped to accept the fancy technology that spares you the terrible burden of removing that card from your wallet.

How is this even remotely worth complaining about?

Incorrect. Let me help you.

'...they made a concience calculated decision to deny the fancy technology which they had deployed, which spares you the terrible volunerability of sharing your personal account details with a retailer who wants to store your payment details in their insecure cloud."

 

[Max(IT)]

Man Apple is messing up once again. Reminds me of Microsoft in their prime. yay yah I know it's the pay providers not Apple


Save yourself the quotes. My point was that these inconsistencies should have been handled ahead of time. I have no confidence in Apple Pay right now. As I said before I tried to use is 3 times and it worked 1 time. My credit card has never let me down and until it gets to that point it's just easier for me to pull my card out.

And for the record I bought the iPhone 6 strictly for Apple Pay...

Did you even read the article?

 

[Nabooly]

I'll try Google wallet when I go in to work later..... I'll be seriously disappointed if they really did cut off nfc payments.

 

[NachoGrande]

Did you even read the article?

Did you even read my post.?

 

[Menel]

I'm confused still, so you're all are saying the retailer doesn't pay Apple??????

/sarcasm

No.
Retailer pays the normal VISA cut.
VISA pays Apple.

 

[macfacts]

How is this Apples problem?

It isn't Rite Aid's problem. They don't want to pay the apple tax. You do know Apple gets a cut of every sale with apple pay, right?

 

[stewy]

That, and the operator of the payment machine has to not be a jerk and cut off access to everything else but the system it has a financial interest in.

hahah, the irony here is amazing... what other company does this sound like?

 

[charlituna]

I really don't think people will shop elsewhere simply because they don't accept Apple Pay.. Well at least an significant amount of people that is.

Right now it won't be a super issue cause not that big a cut of folks have the tech. After all only the iPhone 6/6+ can be used. But when the watch hits that will potentially pick up slack. And then there is the issue of this other system. Folks are privacy nutso and if it gets out that CurrentC has cheaply policies, well folks won't want to use it. So that could push them not not use stores that support it and so on.

 

[CodeSpyder]

Sounds like Rite Aid couldn't stomach Apple's transaction fees.

Merchants don't pay Apple's fees, the banks do.

 

[doelcm82]

post this on a blog somewhere where people will appreciate your truffles and charitable donations.

Why? Now that I've tried them I don't understand the appeal of truffles.

 

[eelpout]

Sounds to me like Apple should block applications on the App store that implement this CurrentC API. They should have standing since the API replicates existing Apple API's in the iOS ecosystem.

Not sure if this is feasible as I am not a programmer or understand the legalities of the App approval process, but it could put a serious damper on the CurrentC model and block millions iOS devices from their "service"

And now you want Apple to be anti-competitive so you can use a feature you'll not likely care about in a couple months???

iPhone users certainly are adding to my lunchtime entertainment.

 

[Mukist]

Blocking payments just because it's from a certain device? Yeah that's going to go over real well. You can't make people use something they don't want to use. CurrentC is going to be a flop and I don't want to use it. I will purposefully avoid shopping at places fully capable of accepting NFC payments and not accepting it just because it comes from an Apple or Google device. This is a horrible business decision and all you are doing is driving customers away. I want to use Apple Pay for the security aspect of it. I no longer want to swipe my card at retailers for fear of said retailer being hacked and my credit card number being compromised.

 

[giantfan1224]

The ship is sinking rather fast with Apple Pay. In theory it's a nice business model. In practice, it's quickly becoming a mess.

That seems a bit melodramatic, don't you think?