Rite Aid Disables Apple Pay Support After Initially Accepting Payments

[Shin3r]

Looks like Rite-Aid no longer has my business. It's not because I'm an Apple fanboy either. They accepted my payment this week and now all of a sudden not? If it had not worked from the beginning because of existing contracts I would have understood, but to "after the fact" stop allowing its use is unacceptable to me. Whatever benefit they (Rite-Aid) received from my ongoing regular business with them will have to be compensated by whatever financial incentive they received to deny me the use of NFC. At some point we, the consumer, have to start standing up against Corporate politics because somebody wants to be the winning bidder. All services should work if it's supported whether it be Google, Apple, Microsoft, or any other company that has it available.

 

[giantfan1224]

I don't see how this is a viable long term business decision for Rite Aid. They'll be forced to come around soon enough.

 

[NachoGrande]

No, Apple didn't mess up a thing. RiteAid did. Bank of America did.

You should return your iPhone 6 and get an Android or whatever, cause Apple doesn't need a customer that **** talks about them over stuff that wasn't their issue. Next you'll be blaming them because Att decides to drop grandfathered unlimited data if you subsidize your iPhone purchase.

When you quote me take, please take the entire quote thanks.

I already have an SG4 that I hate, but thanks for the suggestion. I've been a happy Apple customer for the last 10 years thanks.

As for the data no worries there, I have Unlimited data and ATT has never dropped it I also have $5 text message plan not worried about that either.

 

[mcdj]

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

 

[AppleScruff1]

Apple pay worked amazingly well at Whole Foods yesterday.

Amazingly? How does that differ than just plain old working?

 

[Xian Zhu Xuande]

It works @ CVS? They are not on the launch list.

if so i'll be using it there (already have used it at walgreens and it works great)
With all the hacks going around no need for any of these companies to get my credit card #

A store doesn't need to be on that launch list to use Apple Pay. All you need to see is that logo, for the most part, and your card will work. I used mine on the release day at an unlisted grocery chain. It uses standard NFC technology at the point of sale and thus is compatible with existing systems.

At least it should, if not for what sounds like the very strange business decision on Rite Aid's part of disabling NFC at their point of sale (impacting Google Wallet and contactless credit cards). Seems extremely shortsighted, if accurately portrayed.

This is very fishy. MerchantC started right around the keynote that showed Apple Pay.

It is run by an LLC company behind the mask of a marketing / advertising firm.

It says it accepts most smartphones..

If they are purposefully cutting out Apple Pay and thusly the iPhone I fear Google is behind this.

In any case their App from Apple will be removed asap I believe leaving only the Google Play store and android based smartphones.

That's a bit conspiracy theorist. A very large pool of companies—especially in retail and finance—make a large sum of money from advertising, marketing, and user information. It's a very important part to businesses as it relates to retail transactions. We can certainly be distressed by that reality but to suggest this is Google misunderstands the business. I highly doubt Google has a thing to do with this. First off, advertising and user information is the lion's share of their business, and to the extent that relates to payment they would take ownership of the product just as they have all their other free services which offer convenience and productivity in exchange for information and eyeballs.

Google has already thrown their towel into the mobile payment world under the NFC banner and offers products like Google Wallet. Except they've run into exactly the same sort of nonsense we're seeing now from Rite Aid (if the story's reasoning is accurate).

And Apple users wonder why they are laughing stocks - look no further than this post.

You're the one who looks like a jerk. And you're the one who launches into this argument like some kind of fanboy. He expressed that he would stop shopping at a business because he doesn't agree with that business's decisions or practices, and that's fine. If more people did that businesses would pay more attention to their customers (whether what they care about is politics behind payment—and in this case, privacy and security—or something like gay rights) and that would be a good thing. If more people took action politics would change.

Maybe for that to happen on a scale contrary to what we've seen for so long now is unrealistic, but it's petty and childish to demean someone for making those choices in their life.

 

[kingtj]

Huh? No excuse ....

I have a Rite Aid "rewards" card, and I always have to swipe or present it before paying if I expect to get any discounts I earned, or have my purchase credited towards them.

With Apple Pay or any other NFC payment system, I wouldn't see why it should change anything? Sure, it would be *nice* if it automatically presented my Rite Aid card electronically as part of the transaction.... But if the system doesn't support that? So what... Just swipe or present card before paying with the device.

Some business, such as Rite Aid and Best buy, rely heavily on their "Rewards" programs.

I don't belive Apple pay supports loyalty programs. MCEXchange seems like it does according to their website.

So it makes some sense why rite aid would not allow apple pay since those customers will opt for Apple pay as opposed to using their rewards card. Rite site looses "stickiness" with their Apple pay customers.

 

[spectrumfox]

Been using Apple Pay every day since Monday and I couldn't be happier to keep my credit cards in my pocket. And it'll be even simpler once Apple Watch is available.
One day when Apple Pay is supported well enough, I'll eagerly look forward to when I can just finally leave them all at home for good.

Yikes, you must have been eating a lot of McDonalds this week...

You'd better hit the gym.

 

[Tubamajuba]

Said the guy with an account on an apple-centric forum...

Exactly. Who looks more silly posting on Apple forums, the Apple fans or the people who can't seem to say a single positive thing about Apple?

If you find yourself on *any* forum consistently posting negative comments and threads, why not go to a place that makes you happier? It's one thing to be objective, it's another thing altogether to go out of your way to complain about Apple every chance you get. I'll never understand why people do that.

 

[giantfan1224]

By law it is illegal to turn down US currency at any US business. I think the US ought to pass a new law stating that if the business has an NFC terminal that they must accept all forms of NFC payment (Google Wallet, Apple Pay, etc.).

Try buying anything from the service cart with cash on a United flight.

 

[tdar]

It's the principle.... Rite Aid actually had to do work to make Apple Pay NOT work. Apple Pay functioned at Rite Aid yesterday (just like Google Wallet or any other standards-based NFC payment system).... Rite Aid specifically made this choice to look after the interests of a business partnership to the detriment of their customers (they also disabled Google Wallet at their terminals).

Any time a business makes choices to look after their own interests when supporting their customer's interests would have not taken any effort on their part (i.e.: they went out of their way to make things more difficult for the customer), then the customers should boycott that store and give their patronage to competitors.

This is the exact thing that Tim Cook referred to when he introduced Apple Pay. Everybody is coming up with mobile payment solutions that are designed to leverage the interests of those coming up with them rather than focusing on the user. Every other mobile payment solution wants to track your purchases for marketing purposes.

Any retailer that goes out of their way to block something that they used to accept because they are afraid their interests are threatened regardless of the detriment to their customer's experience should suffer for it.

It is certainly Rite Aid's choice as to whether or not to accept Apple Pay or Google Wallet. It is their business. But as a customer, it is my choice as to where I will shop. I have stopped shopping at Amazon for the past six months because I do not condone their anti-competitive business practices that are delaying customers' orders for weeks or months in order to try to stick it to publishers.

You and others here seem to believe that this was done BECAUSE they are part of MCX. Others state that Stores such as Wal-Mart and Best Buy will not support Pay because they are part of MCX. My question is this: How do you KNOW this. Is it just a supposition or can you link us to facts?
If all of the MCX members have AGREED to not support Pay and or Google Wallet, and this can be proved, there is going to be one hell of a lawsuit.

 

[Shin3r]

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?

I already used it at Rite-Aid without any issue the day before yesterday, so Rite-Aid is backpedaling.

 

[2010mini]

Well that was a stupid move by Rite Aid. You just cut off 10 million + potential transactions at your stores. Not to mention all the Google wallet customers you also blocked.

Stupid.

 

[gadgetguy03]

I don't understand wtf the MCX is really about. Ok, they hate NFC, but what alternative are they offering? And if Rite Aid was real about their MCX membership, they wouldn't accept any NFC payment at all (like Walmart, Target, and Best Buy).

The alternative they offer is creating an account with them, storing your information in their cloud, and using their iOS/Android/Windows app to generate a QR code the cashier can scan to authorize the payment.

 

[Xian Zhu Xuande]

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

There are no additional transaction fees Rite Aid needs to worry about. The most logical explanation taking the story at face value is that this is a decision made to protect and promote the competition payment service they're involved in.

 

[NachoGrande]

So you tried to use it three times and two of those you got a 'not supported' message. Must have if you know they turned it off.

That isn't an Apple issue. That is the merchant being a jerk. And it's not something for Apple to 'work out'. They can force a company to take their system anymore than Discover could force folks to take their cards.

No, nothing happened with the phone and then the clerk said o that thing doesn't work here... It was at a Heinens and a up north gas station... Both had the NFC symbol.

 

[charlituna]

By law it is illegal to turn down US currency at any US business.

Not true. The law is legal tender for all debits. Retail isn't a debt so they can refuse your hundred dollar bill if they wish and so on.

And that law doesn't cover credit cards in any sense.

 

[farmkittie]

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

I believe that Apple gets 1/8 of a cent for every hundred dollars spent (.15 cent to be exact). They can have my 1/8 cent. Of course Apple will profit but that's ok with me. If someday they jack it up once a lot of people are on board I won't be amused but they may not.

 

[kazmac]

Rite Aid should not have signed up if they want to use a competitor's services. Stinks for the consumer.

 

[osx86]

Bye Rite Aid. Continue to dig your own grave.

Walgreens is getting my business.

 

[TheHateMachine]

MCX will continue to chip away at NFC payments. It hurt Google Wallet years ago and it will continue to hurt Apple Pay. You guys can talk about shopping elsewhere because of this, but your average Joe and Susie is just going to pull out the card when it doesn't work and continue to shop there. These retailers won't care, they will make more money off their discounted fees than they would from a handful of people who refuse to shop there.

MCX is trying to get into bed with every retailer and they are succeeding. They will eventually join with the one you switched to. All due to the fact that they can offer them even better discounted transaction fees, something Apple nor Google ever offered retailers.

I used to love NFC payments. I used it for years at various vending machines, retailers and gas stations with Google Wallet. The pool of available places that took it shrunk as MCX wove its tendrils throughout the system, choking the life from it so they could prop up their own proprietary cash cow.

I hope I am wrong and something changes, but I am not hopeful.

 

[Buran]

The reason why Rite Aid (and likely eventually all MerchantC/MCX companies) are doing this is blatantly obvious if you read the details of MCX...

$$$

MCX currently does not accept regular consumer credit cards. They currently accept only store credit cards, and most importantly, checking accounts.

It exists solely to cut the payment networks (Visa, MC, Amex, etc) out of the loop. They want them out of the loop so they no longer have to pay them a % of all charges.

If they can get everyone using MCX, they can save money by telling the major card networks to get bent.

This is the reason why I will not support Rite Aid if they ever open stores in my area. They have gone out of their way to disable secure tokenised payment systems in order to push a system that not only doesn't work with credit cards (which are a buffer against fraud by preventing fraudulent charges from actually removing money from your account) but requires connection to a bank account.

I am not willing to do that, especially when so many stores are leaking my private personal information to criminals who are then never caught or prosecuted. "But it costs you nothing," you say. "But the banks will refund the charges," you say. I'm sorry, but I don't want my name, credit/debit card numbers, or any other magstripe info (not a single EMV terminal has ever noticed I've inserted my card) to be given to someone, knowingly or not.

This is just plain willful head-in-sand irresponsibility and I will not support it. The terminals are able to accept the transactions. They're just going out of their way to force insecure systems on customers. That's an unacceptable mindset to have and Rite Aid's management should be strongly questioned as to why they think this is acceptable, and they should be replaced with people who have customers' security in mind, not corporate convenience.

 

[doelcm82]

Say that again... You have a card that is set up as your default card for Apple Pay, and when the card is used (apparently by a criminal far away, but probably also if you use it yourself without Apple Pay), it can pop up an alert on your phone? So you know at all times when your card is used?

It was an unexpected feature of Apple Pay. I don't know how reliable it is yet. Also the alert came for the $1 preauth to Fedex Office, but not for the denied charge at Shell. I'd prefer to see both.

Amex also has its own iPhone app that can pop up alerts (it may only do so when a charge is flagged as possibly fraudulent), so people who have Amex cards and a non-NFC iPhone or an Android phone might want to check that out.

 

[farmkittie]

BrandsWalk just launched a giveaway for $300 Sennheiser headphones and the limited-edition gold HeadStand (desktop headphone hanger). It looks like all you have to do is submit a photo with the HeadStand on your desk, and PHOTOSHOPPED IMAGES ARE ALLOWED.

All the info you need is here:
http://brandswalk.com/contests/photo_contest.html

This is kind of a non sequitur in our conversation.

 

[ptb42]

The issue I don't believe is if it works but rather the deal they have to make with Apple because Apple wants 0.15% of every transaction that is done through Apple Pay and not every retailer is going to be on board with that.

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

There is no difference in fees for the merchant.