Rite Aid Disables Apple Pay Support After Initially Accepting Payments

[Diode]

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.

A large part of CurrentC is completely eliminating the Credit Card from the equation (and thus the credit card fees).

No idea how it works but I'm assuming you tie it to your bank account somehow. Risky as I (and I assume a lot of other shoppers) would refuse to buy any major purchase without the backing of my Visa.

 

[AspectRatio]

Are you kidding

Underpaid? According to who?

If I had to deal with tantrums from petulant self-righteous adult toddlers treating me like **** because their expensive toys didn't work at my cash register?

If I made $15/hour to deal with that -- hell, if I made $150/hour -- I would consider myself underpaid.

This seems relevant. (SFW)

 

[Shin3r]

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.

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.

 

[giantfan1224]

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.

I'm sure that's what Rite Aid is banking on here. It won't last. They'll have to come around.

 

[charlituna]

There is a Rite Aid and a Walgreens (oh and a CVS) all on one corner near my house...guess which pharmacy is not getting my business...I actually plan to attempt to purchase something and when it is not accepted, give my "feedback" to the manager. Maybe if enough of us do that, Rite Aid will get the picture. Doesn't Rite Aid have the lowest market share of the three big national chains?

I have a rite aid a block away but cvs and Walgreens are a good quarter mile walk. I don't stop at the rite aid because they have locked up over half the store over shoplifting and it's impossible to get help cause they literally have three people working most of the time.

But yeah this doesn't help improve their image in my eyes

 

[caesarp]

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.

Which is why MCX is destined to fail. No way will most people want to pull directly from their bank accounts, when a credit card doesn't do that. Moreover, MCX collects data and uses it for ads. MCX is a retailer, marketing driven, ad driven, loyalty program driven service. It ostensibly serves the customers, but in reality is set up to serve the retailers and their marketing partners. There is NO way this catches on.

 

[s8film40]

Someone should plan a flash mob and have lots of people go into a rite aid do some shopping and then attempt to pay with Apple Pay when it doesn't work just leave all the stuff at the counter.

 

[eelpout]

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.

You want to bring a lawsuit against a merchant to force them to install a particular type of point-of-sale equipment? Good luck with that.

 

[Col4bin]

And so it begins.

This escalated quickly, eh?

 

[AZREOSpecialist]

Please post your objections on their Facebook page. I just did.

 

[Klae17]

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.).

You know this is not true right? I don't have to accept $100s or pennies or checks. Are vending machines illegal because they don't accept $100s or pennies or Apple Pay?

 

[poorcody]

I realize some of this discussion is perhaps a little over-to-top, but I for one actually am going to go to Walgreens over RiteAid. I just don't trust credit card terminals at this stage -- I feel like too many of these systems have been breached en-masse in the last year. My number was stolen in the Home Depot fiasco (I assume) and I had a $2000 charge on my card. I want the token system of Pay.

In the old days I would just carry cash, but the convenience of not going to the ATM regularly is just too nice (not to mention I don't trust non-bank ATMs either!).

I actually ordered a BOA card so I could use it with Pay.

 

[spectrumfox]

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.

Uh, no they didn't. They still accept cash and cards.

Get a grip.

 

[rGiskard]

Load up a cart at the offending (non-ApplePay) merchant and go to checkout.

When they say,

"Oh, we don't support ApplePay."

You say,

"Cancel the sale. I'll shop somewhere else."

If everyone does this, merchants will quickly get the picture and throng to get on-board.

And if they accept Apple Pay?

"Oh, ummm, well I don't really want all this stuff." And then walk out?

 

[Shin3r]

Apple didn't mess up anything. All Apple does is send the encrypted card information to the POS via the NFC transmission. From there, it is all up to the POS, and the credit card processor (whatever company that the POS system is setup to process with. This can be Vantiv, Mercury, FirstData, TSYS, etc). If declines are happening, it's coming from the processor or from the bank. Apple (smartly) doesn't have anything to do with the actual "processing" of this.

Credit card processing is actually extremely complex when you dig deep into it. This is the industry that I'm involved with. Most people have no idea that their credit cards are sent through multiple different companies and processors for one transaction to go through. Sometimes as many as six different companies are involved when it comes to processing a single transaction.

It's very complex, and I'm sure people who have no idea how credit card processing works will probably comment in this thread as if they know.

Yeah, I'm not concerned with complexities when it DID work and now they changed their mind all of a sudden. It's just not an issue of complexity in this discussion. I picked up my Rx and paid in like 5 seconds at RiteAid two days ago.

 

[BruiserB]

Sounds like RiteAid doesn't really know what they want to do.

They apparently got on the NFC bandwagon at some point and decided to install the infrastructure (maybe when GoogleWallet rolled out?).

Then it never really took off and the whole CurrentC thing sprang up. CurrentC doesn't really seem to have anything to do with security, but rather with cutting costs for the merchants. They want direct access to your checking account through ACH transactions rather than through the Visa/AMEX/MC payment system. I don't like this arrangement at all, although I do have a Target Red Card. Since they give me 5% off, I'm reluctantly willing to go along with their scheme. If other CurrentC retailers don't give discounts, I'll never use their system. Anyway RiteAid seems to have strongly aligned themselves with this group. Target actually seems a bit smarter and already have one foot out the door by trying out ApplePay in their app.

Now suddenly on Monday people start showing up at RiteAid and using ApplePay. They probably mostly forgot that their system even supported it as there are probably only a very small percentage of people using GoogleWallet and RFID Credit Cards are quite rare in the US. Suddenly some VP who's responsible for the CurrentC arrangement sees that they are getting customers using ApplePay. He gets all worried that this could become more popular than the CurrentC solution that they haven't even rolled out yet. So he decides RiteAid must stop taking ApplePay. So they turn off NFC and put a message on the terminal that they don't take ApplePay. Now I doubt the terminal really knows ApplePay from any other NFC payment and this seems to be evidenced by the people saying GoogleWallet is also turned off. They just turned off NFC.

This seems really dumb. ApplePay doesn't cost them anything above what a customer using a swiped credit card does. They are turning off the infrastructure they already had (and probably mostly forgot about) just to spite ApplePay as it has the chance to upend CurrentC before it even launches.

I don't live in an area that even has RiteAid, but knowing this would probably make me take my business elsewhere as long as I had a reasonable alternative. I wouldn't pay 20% more to go to Walgreens just because they have ApplePay....but if they are relatively equally priced, Walgreens would get my business.

I bet this is reversed within a few months RiteAid accepts ApplePay. Especially if customers let them know that is how they want to pay.

 

[RedOrchestra]

Someone should plan a flash mob and have lots of people go into a rite aid do some shopping and then attempt to pay with Apple Pay when it doesn't work just leave all the stuff at the counter.

This is as low as it gets folks.

 

[caesarp]

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.

"As all MCX members are prohibited from accepting Apple Pay, CurrentC mobile payments can have a major impact on Apple Pay."

http://mainstreetinc.net/currentc-mobile-payments-retails-alternative/

Some other MCX retailers probably didn't figure it out yet and haven't turned off the Apple Pay or NFC capability.

 

[sohelpme]

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.

No. That is 100% wrong.

If anything, the retailer pays the same, existing percentage to their payment processor that they would if the customer used the physical credit card by swiping. However, particularly for larger businesses, but it also applies to smaller ones, because the business is using a more fraud-proof method of payment, they generally get to pay a LOWER percentage to their payment processor.

The card issuers are the ones paying Apple 0.15% per transaction, while ALSO accepting a lower transaction fee due to the transaction being significantly less likely to be fraudulent.

If RiteAid or whatever is preventing Apple Pay from working, it is because they want to be able to track your purchases with a method that links the purchases with your name, which Apple Pay doesn't let them do [unless you use a loyalty card].

 

[charlituna]

This is probably not an original thought and has been said elsewhere on this forum already.

But it seems to be that part of the problem with this rollout, is the short amount of time between announcement and deployment.

They were working on this in secret with the banks and credit card companies for months before we heard a word about it. And many of the retail shops already have NFC capable gear and systems for use with international cards.

This rite aid thing isn't a bug. It worked and they shut it off for their own reasons

 

[EcranBleu]

So what?

It's their business, they decide what payment option they intend to support. It's a bit like stores that don't accept American Express.

 

[MyopicPaideia]

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.

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.

No, with Rite Aid disabling NFC they are clearly making a play towards the barcode based CurrentC digital cash initiative being taken up by the MCX group, which includes Walmart, Best Buy, and of course Rite Aid.

Will be interesting to see how this plays out, because taking a stand against Apple Pay wouldmbe one thing, but in doing so you simultaneausly must take a stand against all NFC based payment systems. Doesn't seem like a long term success strategy.

In addition to that, they are trying to bypass Visa, Mastercard, Amex, Discover, etc. by making CurrentC not work with cards at all, debit or credit. It has to be directly coupled to a transactional bank account. On that basis alone it will fail, because it is trying to remake the entire payment infrastructure already in place.

This move only has anything to do with Apple in that Apple beat MCX to the punch, and has launched a system that works with all the current standard payment infrastructure systems globally, and is able to use the massive customer bas and brand leverage it has to have a real shot at making Apple Pay synonymous with NFC payments.

Gonna need a lot of indistrial sozed popcorn machines to follow this fight

 

[giantfan1224]

Nope, But I will continue to use my credit card though. It has worked for the last 20 years and never had a "hiccup"...

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

 

[iSRS]

Easy, no shopping at Rite Aid.

No big deal, see ya Rite Aid.

Yup. I have the typical corner. One is a RiteAid, one a CVS, one a Walgreens. I hit the one that is easiest based on where I am coming from and where I am going. But I will make this a factor in my decision. I will liken it to CarPlay. Apple Pay/CarPlay alone will not be the decision maker, but it will be one of the things I take into account, and will be a tie breaker.

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.

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

The world doesn't owe me Apple Pay, but I do have a choice. If Walgreens accepts it and Rite-Aid doesn't, that's an incentive for me to shop Walgreens.

I used my Amex card at Kroger in Dallas the night before last. They didn't seem to have device to accept Apple Pay or any NFC payments. Later that night I noticed a charge pop up for $1 from FedEx Office somewhere in Louisiana. Since I have that as my iTunes default card and on my Apple Pay, the charge showed up as an alert on my phone. It hadn't posted yet, so I flagged it to alert me when it did. A few minutes later, I get a call from Amex, which had denied a charge for $53 at a Shell station in LA.

It's annoying that I have to get a new card, but Amex fraud detection didn't allow either of the charges to go through, so whoever stole my account didn't get anything from it.

I'm even more a fan of Apple Pay (and Google Wallet) than I was before. I look forward to the eventual day when no one sees my credit card account number besides me and the bank.

Agreed. I pulled up my citi app today to check my balance. No information on closed accounts.

Call them. Well, one of the places I used my card has been hacked, so they closed my card and are sending me a new one.

I am assuming it is Home Depot. But we'll see. Apple Pay can help prevent this need. THAT is why it is exciting.

So unlike Apple Pay, they are storing users' sensitive financial information. And we have seen in the last weeks that sensitive financial information locked up in cloud vaults has a tendency to escape.

Bingo

 

[AspectRatio]

Wow

Someone should plan a flash mob and have lots of people go into a rite aid do some shopping and then attempt to pay with Apple Pay when it doesn't work just leave all the stuff at the counter.

The Butlerian Jihad cannot come soon enough.