I have some good new and some bad news on this issue for everyone in this thread.
First the good news - this is a known problem, at least at the managerial level at my store. Apparently, they have been aware of the issue for a short while now. Also, based on reports from this thread, my own testing and talking with management, it seems this issues affects all AMEX and Mastercard credit cards. Visa and Discover cards do not seem to be affected. I don't know how Apple Pay Cash and debit cards fit into the picture yet. The management person I talked to confirmed that they knew about the AMEX problem, but they didn't know about the Mastercard problem.
I was able to test further today and my results match those of lifebyc. AMEX and Mastercard do not work. Visa works fine. My Citibank Double Cash Mastercard does not work. My Citibank Costco Visa card DOES work. I freshly added an AMEX card to Apple Pay that I haven't used in over a year and it did NOT work. A customer today used a Capital One Venture card and that worked (used as TAP, not chip or swipe). Venture cards are Visa cards.
Now the bad news - I still have no idea who in the corporate structure to contact about this issue. Obviously, this problem is happening across different divisions. Dogshoes has a report from Albertsons, lifebyc reports from Vons, RegDC reports from Safeway, and I'm reporting from Jewel-Osco. Technically we are all owned by the same company now (I think it's called New Albertsons, Inc.) But I have no idea if all the divisions are using the same master credit card processing system.
And I don't know how Apple Pay Cash and debit cards figure into all this. I tested my debit card today and it worked as a debit. I had to enter my PIN and everything. However, it did not give me the option for cash back. Using a debit card with chip or swipe, you get the option of getting cash back. But the transaction is run through the card as a debit (as opposed to being run as a credit transaction).
As for Apple Pay Cash, I have no idea how that's being treated at the card terminal. If it doesn't ask for a PIN, then most likely the transaction is being sent as a credit transaction. Apple Pay Cash is backed by a bank called Green Dot. According to https://applepaycash.greendot.com/termsconditions/ the transactions are being run on the Discover network. This means they should work. I had a customer use a Discover card on Apple Pay today with no problems. But there are several reports here of Apple Pay Cash failing. So, again, no idea.
Anwyay, I'm going to see if I can find out who to send all this information to at Jewel-Osco corporate. Maybe from there it can be forwarded on to New Albertsons, Inc. corporate. I'll keep everyone posted.