Rite Aid Disables Apple Pay Support After Initially Accepting Payments

[spectrumfox]

I'm not sure why this is hard to understand. If I walk into a Rite Aid to buy some shaving cream and I they won't take Apple Pay, then sure, I'll find another quick way to pay for it but what about the next time? If it's just as convenient to go to Walgreens, CVS or wherever, then I'm probably going to avoid Rite Aid. Especially if my goal is to completely get rid of my wallet eventually (which it is).

Not anyone? A quick scan through this thread shows that they've alienated many. I have an iPhone 5s that I plan on keeping for at least another year, so you might think that this doesn't affect me. The truth is though that they have alienated me because I don't want a store telling me what payment system I can use. It's one of the reasons I don't shop at CostCo: I don't have or want a Discover card, and even if I had one I'd insist on being able to use one of my other cards there.

I get where you two are coming from, but the simple fact is NFC payments are not a standard form of payment in the US right now. Stores are not required to accept NFC. They're required to accept cash. You're more than welcome to shop anywhere else you want to, as is your right as a consumer. There is always time for Rite-Aid to reverse their decision before NFC payments become more prevalent.

But trying to make this out to be some big deal is ridiculous because it's really not. It's a road bump on the great NFC highway that may eventually smooth itself out, or maybe it won't.

But really, we're talking about ONE retailer in a sea of many... The story is far from over.

 

[MyopicPaideia]

This is not true .

"Broad payment options: No-one likes to have their choices limited. So we are building in the freedom to pay using a variety of financial accounts, including personal checking accounts, merchant gift cards and select credit and debit accounts."

Those are merchant specific rewards cards, not financial institution cards and NOTHING with Visa, Mastercard, American Express, or Discover on them.

 

[giantfan1224]

I get where you two are coming from, but the simple fact is NFC payments are not a standard form of payment in the US right now. Stores are not required to accept NFC. You're more than welcome to shop anywhere else you want to, as is your right as a consumer. There is always time for Rite-Aid to reverse their decision before NFC payments become more prevalent.

But trying to make this out to be some big deal is ridiculous because it's really not. It's a road bump on the great NFC highway that may eventually smooth itself out, or maybe it won't.

But really, we're talking about ONE retailer in a sea of many...

If I made it out to be a big deal then my bad. It's not. My whole point since the beginning of my comments is that it seems like a stupid move on Rite Aid's part. And if I understand the CurrenC platform, it's not only Rite Aid that will be refusing Apple Pay NFC payments.

 

[Taz Mangus]

I'd rather have choices than a dictatorship of Apple telling me what I can and can not do with a phone.
Then provide small incremental updates that obsolete 2 year old products so you are forced to upgrade or have a crippled piece of HW/

But why can't I make phone calls with my refrigerator. Damn why should I allow Whirlpool to dictate what I can and can't do with my refrigerator.

 

[mrbrown]

I've read and been told that a terminal doesn't need to have an Apple Pay sticker on it for Apple Pay to work. It just needs to have the contactless payments icon (below) to work. So...is that not actually the case?

It is the case, but if you read the article, Rite Aid disabled all contactless payments, probably because they are part of that MCX consortium that's producing a crappy app that'll provide a very technologically advanced barcode (sarcasm here...) that'll be linked directly to your bank account!

 

[rsocal]

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...

Get in the game, if you are going to blame this on Apple or think something of this magnitude won't have glitches keep using you CC's!

I can't tell you how many times my CC's have had stupid glitches! What about identity theft, and employee's that steel C.C numbers, let alone being hacked!

I've had a couple of friends and employee's suffer identity theft and watched what they went through. One of them is still having **** show up on his credit report. Apple Pay is a godsend to these people!

If you truly bought an iPhone 6 for Apple Pay, you wouldn't give up so easy.

 

[bpeeps]

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

/sarcasm

I think it was quite clear that my comment was first and the following users simply didn't see it or didn't read the subsequent comments. You'll live.

 

[addingmy2cents]

Not every retailer will be able to accept Apple Pay right away. There are only a handful of merchant processors that are equipped to process these transactions for the merchants and provide the terminals needed to accept that as a form of payment. From what I read Rite Aid was not a merchant set up to start accepting Apple Pay as of yet. Furthermore, the card issuers bank also has to be signed up to process the customers card. If you do not bank with a few well named banks like Wells Fargo, you won't be able to set up your debit card with Apple Pay. But if you have a credit card with Capital One for example, your card is compatible with the system.

 

[spectrumfox]

If I made it out to be a big deal then my bad. It's not. My whole point since the beginning of my comments is that it seems like a stupid move on Rite Aid's part. And if I understand the CurrenC platform, it's not only Rite Aid that will be refusing Apple Pay NFC payments.

We are in agreement on that, it is rather a bonehead move for Ride-Aid to limit NFC payments to only the backend that they choose to support.

The unfortunate part is NFC payments are not regulated, so there's no rule that says if you support NFC you have to support ALL NFC backends. Right now it's totally up to a company whether or not they want to support Apple Pay, Google Wallet, SoftCard, CurrenC, etc...

That is going to be the next battle: NFC regulation.

 

[teknikal90]

iPod Touch

Nooooope.

http://www.ilounge.com/index.php/reviews/entry/apple-ipod-touch-8gb-16gb/

all the limitations of the original iphone was passed on to the original ipod touch..and more.

 

[dneesley]

No law re: must accept cash

"I thought that United States currency was legal tender for all debts. Some businesses or governmental agencies say that they will only accept checks, money orders or credit cards as payment, and others will only accept currency notes in denominations of $20 or smaller. Isn't this illegal?
The pertinent portion of law that applies to your question is the Coinage Act of

1965, specifically Section 31 U.S.C. 5103, entitled "Legal tender," which states: "United States coins and currency (including Federal reserve notes and circulating notes of Federal reserve banks and national banks) are legal tender for all debts, public charges, taxes, and dues."

This statute means that all United States money as identified above are a valid and legal offer of payment for debts when tendered to a creditor. There is, however, no Federal statute mandating that a private business, a person or an organization must accept currency or coins as for payment for goods and/or services. Private businesses are free to develop their own policies on whether or not to accept cash unless there is a State law which says otherwise. For example, a bus line may prohibit payment of fares in pennies or dollar bills. In addition, movie theaters, convenience stores and gas stations may refuse to accept large denomination currency (usually notes above $20) as a matter of policy."

 

[giantfan1224]

Why not?
It sounds like the contract between Apple and vendors was not flushed out to prevent these types of abandonment of their version of existing technology.

Apple didn't (doesn't) have a contract with Rite Aid for Apple Pay.

 

[Lepton]

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. ...

I used ApplePay at CVS today, but it seems very likely they will turn it off just like Rite Aid, any minute now.

 

[MyopicPaideia]

Never said anything about Apple Pay not being successful elsewhere. It probably will be. Just not in the US if MCX has anything to say about it.

Yeah, but this is just another major reason why MCX will never be anything. NFC already is the defacto standard in contactless payments looked at on a global scale. The US is about the only 1st world country where it is not prevalent. MCX as a platform in the long term is already doomed, because even if it somehow won in the US, NFC has already won everywhere else. Not to mention that none of the millions and millions of tourists coming in could use it, while they could use NFC.

The more I think about it, the more CurrentC is like some US marketing executive's LSD Acid trip pipe dream.

The other thing is, apparently there are plenty of Rite Aids that still haven't got the memo and their NFC terminals still are active and working fine. Just like there are Walmart's nationwide where NFC is active and working and has been working perfectly with Apple Pay since day one and continues to do so. It is a serious clusterf*#% for these massive retailers, because just like Rite Aid - what is Walmart going to do?

 

[giantfan1224]

Not every retailer will be able to accept Apple Pay right away. There are only a handful of merchant processors that are equipped to process these transactions for the merchants and provide the terminals needed to accept that as a form of payment. From what I read Rite Aid was not a merchant set up to start accepting Apple Pay as of yet. Furthermore, the card issuers bank also has to be signed up to process the customers card. If you do not bank with a few well named banks like Wells Fargo, you won't be able to set up your debit card with Apple Pay. But if you have a credit card with Capital One for example, your card is compatible with the system.

This is what's not clear to me: Won't all NFC terminals automatically accept Apple Pay? In this case, isn't it Rite Aid that is actively refusing Apple Pay through NFC? It's not that merchants have to be set up to accept Apple Pay, just as long as they have the NFC terminal, once Apple Pay went live, it would work with all NFC systems? And the merchants that are said to be on-board are the ones that will accept the Apple Pay NFC transactions and not block them like Rite Aid is doing? Am I off somewhere?

 

[addingmy2cents]

I'm sure the cost is getting split between processor and merchant and the merchant could possibly pass the charge to the customer. Look up the Durbin Act. But then it also depends on how the pass will be ran. Will the merchant get charged basic interchange fees if they are on interchange plus? If the merchant is on tiered pricing will the merchant get docked the higher fee of mid or non qual because the card is not actually swiped? I would think swiped would be the same as paying with Apply Pay because it's not keyed which means higher risk. I don't know. Hard to say. All I can say is don't tear Apple up and down or the merchants for not accepting this form of payment because their processor may not be equipped to run and accept those forms of payments YET

 

[rsocal]

We are in agreement on that, it is rather a bonehead move for Ride-Aid to limit NFC payments to only the backend that they choose to support.

The unfortunate part is NFC payments are not regulated, so there's no rule that says if you support NFC you have to support ALL NFC backends. Right now it's totally up to a company whether or not they want to support Apple Pay, Google Wallet, SoftCard, CurrenC, etc...

That is going to be the next battle: NFC regulation.

Big time bone head move buy any business to limit how they can get paid!

My business takes all CC's and Amex kills me with cost, however, that is one of the most used CC's by my customers, they love to get miles!

If I were to say no, I don't take Amex, how much money would I lose???

I can't believe any business, would limit how they get paid!

 

[skinned66]

Sounds like a case of "choose your battles" and Rite Aid choosing poorly.

 

[LordVic]

NFC already is the defacto standard in contactless payments looked at on a global scale

Its amazingly true.

Up here in canada, Contactles, NFC payment terminals are virtually everywhere. From convenience stores to coffee shops and even restaraunts.

However, We don't hvae any access to software based services for our phones. Google Wallet is not available for Canada. Other NFC payment services have not come.

However, the Credit Card companies themselves have jumped headfirst. Virtually All our credit cards now come with contactless payment built right in. They all have a built in NFC transmitter that is branded "paypass" which does the job. Tap your credit card. PAY!

I'm still hoping we will get the phone based ones though. The banks just seem very reluctant to putting out apps.

So far, the only App i've found that will do NFC payments on my phone is Tim Horton's pre-paid cards! You can buy a gift card once, load it's info into the Tim Horton's payment app, and pay at Tim Horton's coffee shops with NFC from their app. And keep reloading the card as you need.

its, quite frightening when our coffee shops are more progressive than our financial institutions.

 

[nia820]

or...you could just take out your damn wallet like you have been for years

I was going to post this but you beat me to it. Technology is truly making people too damn lazy. People don't even want to be bothered to take their credit cards out anymore.

 

[Sonmi451]

What this post mean in regards to this thread topic?

you're so ironic.

 

[MyopicPaideia]

I'm sure the cost is getting split between processor and merchant and the merchant could possibly pass the charge to the customer. Look up the Durbin Act. But then it also depends on how the pass will be ran. Will the merchant get charged basic interchange fees if they are on interchange plus? If the merchant is on tiered pricing will the merchant get docked the higher fee of mid or non qual because the card is not actually swiped? I would think swiped would be the same as paying with Apply Pay because it's not keyed which means higher risk. I don't know. Hard to say. All I can say is don't tear Apple up and down or the merchants for not accepting this form of payment because their processor may not be equipped to run and accept those forms of payments YET

All of this has already been covered many times. Apple Pay qualifies as a "card present" transaction when used at a merchant POS terminal. Merchants do not need any special hardware or software to accept Apple Pay, just a standard NFC POS terminal. Merchants are not charged anything extra for accepting Apple Pay. Rite Aid actively disabled NFC payments of all types to push MCX's CurrentC system, of which they are a member.

 

[Peace]

i.e. Store-branded credit cards.

That doesn't matter. A credit card is either Visa.Mastercard, American Express or Discover and the terms and conditions are set by the Credit Company.

 

[addingmy2cents]

This is what's not clear to me: Won't all NFC terminals automatically accept Apple Pay? In this case, isn't it Rite Aid that is actively refusing Apple Pay through NFC? It's not that merchants have to be set up to accept Apple Pay, just as long as they have the NFC terminal, once Apple Pay went live, it would work with all NFC systems? And the merchants that are said to be on-board are the ones that will accept the Apple Pay NFC transactions and not block them like Rite Aid is doing? Am I off somewhere?

Well you are partially correct. If they have a NFC Terminal it SHOULD work but I would think that their processor would have to have the ability to process the transactions. Like for me, I can open Apply Pay in my passbook but the system doesn't accept my card because my bank is not equipped to handle Apple Pay yet. That's why I say that the processor has to be able to process Apple Pay transactions. I would hope if a retailer has a NFC terminal displaying the icon saying "yes we accept Apple Pay" then that merchant is equipped to accept those transactions. There could be numerous reasons Rite Aid does not accept those payments at this time. I can't see a merchant refusing a form of payment just because they don't want to use it, you know what I'm sayin? But who knows what their reasons are on why. This just went live so there could be bugs in the system that haven't been discovered yet.

 

[MyopicPaideia]

This is what's not clear to me: Won't all NFC terminals automatically accept Apple Pay? In this case, isn't it Rite Aid that is actively refusing Apple Pay through NFC? It's not that merchants have to be set up to accept Apple Pay, just as long as they have the NFC terminal, once Apple Pay went live, it would work with all NFC systems? And the merchants that are said to be on-board are the ones that will accept the Apple Pay NFC transactions and not block them like Rite Aid is doing? Am I off somewhere?

You are absolutely correct.

The only thing you are slightly off on is that a merchant either accepts NFC or it doesn't, it can't choose to accept one form of NFC over another.