stevejobsfan0123

Q: Technical limitations of NFC readers that do NOT support Apple Pay

Apple Pay is accepted at most of the retailers I shop at. However, there are at least a couple places where I have gone where I go to pay, see the NFC logo on the reader, go to pull out my phone, and the cashier says, "oh, we don't support Apple Pay, sorry." Sometimes they even said they used to support it but shut it off. So I guess my question is just one out of curiousity, and that is why a reader that supports NFC wouldn't support Apple Pay.

Posted on Apr 1, 2016 1:56 PM

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Q: Technical limitations of NFC readers that do NOT support Apple Pay

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  • by lkrupp,

    lkrupp lkrupp Apr 2, 2016 12:51 PM in response to stevejobsfan0123
    Level 5 (4,153 points)
    Apr 2, 2016 12:51 PM in response to stevejobsfan0123

    I think “Apple Pay” has become a generic term to represent NFC payments for most retail clerks. They all work the same, use the same protocols. If one form works the rest should too. Did you think to ask the clerk if they supported Google Wallet or other NFC payments? I suspect than answer would have been the same. I also think it has more to do with the fees involved. I have a good friend who owns a pharmacy. His payment terminals support NFC  but he says he will probably never activate them because of the costs involved. Fees for credit card processing, fees for debit card processing, fees for NFC processing nickel and dime the merchant to death. Most merchants would prefer cash but the credit card companies have brainwashed to masses into using them for minor purchases which basically forces the merchant to accept them. I’ve been in a few restaurants and other places of business that only accepted cash. When a customer hands them a credit card they direct that customer to the ATM sitting against the wall. They make money instead of losing it that way.

  • by George Chapman,

    George Chapman George Chapman Apr 15, 2016 2:47 PM in response to lkrupp
    Level 2 (340 points)
    Apple Watch
    Apr 15, 2016 2:47 PM in response to lkrupp

    They would loose my business however!

  • by sberman,

    sberman sberman Apr 19, 2016 10:45 PM in response to stevejobsfan0123
    Level 8 (39,090 points)
    Apr 19, 2016 10:45 PM in response to stevejobsfan0123

    Might the limitation be financial and not technical?  Might someone along the stream of funding an Apple Pay transaction not wish to pay Apple a few basis points of fee?

     

    http://www.bloomberg.com/news/articles/2014-09-10/apple-said-to-reap-fees-from-b anks-in-new-payment-system

  • by stevejobsfan0123,

    stevejobsfan0123 stevejobsfan0123 Apr 19, 2016 10:50 PM in response to sberman
    Level 8 (43,557 points)
    iPhone
    Apr 19, 2016 10:50 PM in response to sberman

    That could certainly be the case, but let me put it another way: let's say a merchant has an NFC reader but they say Apple Pay is not accepted. Because the reader supports NFC, wouldn't it by definition accept Apple Pay (unless you are saying the merchant would go out of their way to shut it off because of financial reasons)?

  • by sberman,

    sberman sberman Apr 19, 2016 11:01 PM in response to stevejobsfan0123
    Level 8 (39,090 points)
    Apr 19, 2016 11:01 PM in response to stevejobsfan0123

    Good question. I don't know and should not speculate.

     

    For what it's worth, I've been stumped on the other end. As a Citi co -branded Master Card holder, I've been amazed that Citi Master Cards have long been accepted by Apple Pay, but this particular co-brand (AT&T Universal) was not accepted until about a month ago.

  • by Jonathan UK,

    Jonathan UK Jonathan UK Apr 24, 2016 9:37 AM in response to stevejobsfan0123
    Level 7 (31,031 points)
    Apple Watch
    Apr 24, 2016 9:37 AM in response to stevejobsfan0123

    Hi

     

    It is certainly possible for a merchant to have an NFC capable terminal, but for that terminal to not yet be capable of accepting payments via Apple Pay.

     

    In order for any given merchant to be able to accept Apple Pay, their payment terminals must meet various acceptance standards (eg hardware, software, contactless specification and EMV specification). Such requirements typically also differ, to a certain extent, by card type (Amex, Discover, MasterCard, Visa).

     

    Terminal upgrades (whether relating to hardware and/or software) and the ability to accept Apple Pay are a matter between merchants and their merchant account provider (or independent sales organisation) and/or between merchants and their payment processor. (For some merchants, their merchant account provider and payment processor may be one and the same).

     

    Apple is not involved in this process. If you would like to encourage any given merchant to accept Apple Pay, you may wish to contact that merchant's head office and/or their customer services team.

  • by imagine engine,

    imagine engine imagine engine May 13, 2016 8:32 PM in response to stevejobsfan0123
    Level 2 (286 points)
    Apple TV
    May 13, 2016 8:32 PM in response to stevejobsfan0123

    It's not that the POS terminal doesn't support Apple Pay it is instead having to do with the retailer not turning the "tap to pay" feature on no matter if Apple Pay, Interac or other form of NFC payment. I found this out at Swiss Chalet and Walmart here in Vancouver where both businesses have POS that indicate it supports Visa PayWave but neither had it turned on and requested I insert the card into the chip reader to enter my PIN. The best way to create change is with your purchases. If enough customers stop shopping at a particular retailer due to restricting tap to pay or outright blocking Apple Pay then those businesses will change their tune and turn the feature on.

  • by ManSinha,

    ManSinha ManSinha May 13, 2016 8:58 PM in response to imagine engine
    Level 6 (10,250 points)
    iPhone
    May 13, 2016 8:58 PM in response to imagine engine

    Walmart is part of MCX and they have some consortium that is trying to come up with their own standard. All of the participants are against Apple Pay http://www.forbes.com/sites/markrogowsky/2015/12/10/walmart-drops-an-atomic-bomb -on-its-applepay-competitor/#5c698c9b36eb