Apple Wallet App in Mac OS, "Card removed by issuer" error

I think I found a solution/workaround. It involves setting up a second "temporary" iCloud account on your Mac to activate the "Reset Apple Pay" option. Here are the steps I followed:

• Make sure that you delete any leftover credit or debit cards added on your current user account, which should all show "Removed by issuer" at this point.
• In System Settings > Users & Groups, add a new Admin account (should probably work with a Standard account too, but this is what I used).
• Restart your computer and login to the "temporary" account.
• When setting up the temporary account, create a new iCloud account and follow the prompts. I created an @iCloud.com email address, and you'll need a phone number separate from the one you use on your main account to create the account. The name doesn't have to match the name you have on your debit or credit cards.
• Still in the account setup process, after setting up iCloud, set up TouchID. You can use the same fingerprints as the main account.
• After setting up TouchID, set up Apple Pay. Since it's a new iCloud account, you'll need to enter the card details manually. You'll see that you're presented with the card verification process this time, and it goes through properly. That's all you need the "temporary" account for.
• Log out of the "temporary" account and log into your main account. In System Settings > Wallet & Apple Pay, select "Add Card..." You'll be presented with a screen similar to this one:

• Once you click "Reset Apple Pay and Add Card..." your saved cards in iCloud from other devices should populate as expected, and you can add them all with no issue.

So in short, set up a new user account on the Mac, create a new iCloud account for that user account, set up TouchID and Apple Pay on the new user account. Log back into your main account and reset Apple Pay. Everything should work now.

I'm not sure if there's a way to get the "Reset Apple Pay" option in any other way, but this seems to do the trick. I was able to add all my cards with no issue just now.

I can’t comment on issues discussed on Reddit. Waiting for an update is rarely an answer.

Your issue is because of the board swap. The Secure Enclave chipset is on the board and the cards were probably not properly removed.

Have you talked to your bank? You’ll probably need to talk to tech support for Apple Pay and explain the situation. They need to reenable your account for use on Apple Pay.

Encrypted card information is stored in the Secure Enclave chipset. The cards need to disabled for the device they were on and setup for addition to a new device. Only the bank can do that step. You may need to reach a higher level of support for assistance with this issue. The tier one bank support may not understand the issue. Give tier 1 a chance, but try to escalate the issue if necessary.

Chiming in here since OP is referencing my Reddit post. Indeed, Apple Support has repeatedly told me to wait for a future macOS update to resolve this issue.

A little background: Over a month ago, my M1 MBP 16" wound't turn on, so I brought it into an Apple Store for repair. They replaced the TouchID and logic board, and I used a fresh install of macOS without restoring from backup (some older posts suggest TimeMachine backup restores can also cause Wallet problems, this should not be the case here). Ever since, I have been unable to add any cards to the Wallet of my 16” MBP (they are immediately rendered as “Removed by Issuer”). Two tidbits I've found while troubleshooting is that a) the Previous Cards selection pane is not updated with the current list of cards on my iCloud account, b) the card verification page that usually shows up is skipped entirely.

I tried reinstalling macOS through recoveryOS, using another Mac to reinstall the firmware or do a complete restore to no avail. I even had a GeniusBar appointment for this case on in late July, where I brought in another MBP, and they verified that the second MBP added the cards to the Wallet just fine. I can't use that loaner MacBook from my work anymore, and I’m now left with a semi-functioning 16” MacBook.

I have been on the phone for more than 12 hours total with Apple Support over the span of a month, and the issue is still not resolved. After gathering some initial data about the issue, the Apple Pay Senior Advisor sent out a report to engineers on the team, who requested sysdiagnose and video recordings of the issue being reproduced. It's been two weeks since I've sent over the requested files and the Senior Advisors still don't have any updates. My understanding is that they have categorized this as a software problem, so there are offering no replacement option for me, no matter how long this process takes.

Last week, the Senior Advisor I spoke with told me to have “faith” that the issue might be resolved in 2 or more weeks with a 13.x or 13.5.x software update, just as they have "faith" that an issue they have with their HomePod will get resolved soon. Today, I spoke with another Advisor to see if there was any update, and once again was told that they wouldn't be doing their job right if they sent me another computer and it still didn't work, or they sent me a new computer before the engineers got back to them. In both calls, when asked about a timeline, the answer I got is that there is no timeline for such issues and I would be contacted if there was an update.

I appreciate the care that most Advisors dealing with my issue have shown, but I expected more direct solutions from the post-repair warranty and my AppleCare coverage. I have also filed feedback to the Apple Pay and Settings macOS teams (FB12952624/FB12952620). And to Jeff's great troubleshooting idea, I have contacted both third-party (Chase and Amex) and Apple Card support lines, and they said that there is no issue showing up on my account, and they tried removing the cards on their end but that didn't help. I also tried adding a card that I hadn't used before on that device and it still doesn't work. Interestingly, the terms and agreements page shows up but the usual card verification page (text or call) that many cards besides the Apple Card use doesn't show. I'm presented with the final "Your card was added successfully" page and when I navigate back to the Wallet page in System Settings I get the "Removed by issuer" error. When I called AmEx, they did mention that the card was being added only partially, without the verification step. Even when they verified the card on their end, the "Removed by issuer" error remained.

Yep, that’s correct.

I’m talking about bank support. Apple Support can’t add cards.

Oh I'm so glad you got it working! I was going crazy trying to figure out what was going on for a month and it was such a relief.

Apple Card probably didn't work because it's tied to your AppleID, but I'm not sure why the USAA cards wouldn't work.

If it makes you feel any better, I also had my last tech support call scheduled a few weeks back and no one called. Had to call in myself, and was told that since there was no update, they might have decided not to call. Not the greatest experience, but I'm glad we got it working.

Last thing, you might want to pin/suggest my solution post instead of my long rant so people know this issue can be resolved/troubleshooted without having to look through the replies. Have a great rest of your day!

So, your >fix< is in regard to Mac users, is that correct?