I was reading a letter to the editor in issue 14:10:02 regarding the Apple Pay "discount." Both Associations [now card companies] have rules concerning mobile devices and/or near field communication devices, all are considered to be card present transactions and settled as such. I just wanted to point out that all the other devices/applications that are out in the market are treated the same as it relates to near field POS systems.
It also means that because of this the issuer can only use card present chargeback reason codes, which greatly reduces the number of reasons a cardholder or issuer could use to dispute a transaction. I thought your readers might want to know this because they may be selling other near field POS solutions and not be aware of how the transactions will be treated.
Andrew Benjamin, TSYS Managed Services
Thank you for sending us information that will help our readers become more informed about how Apple Pay transactions will be treated by the card brands. For ease of reference, I'm pasting in below the original question from Readers Speak in our Oct. 27 issue:
Confusion over Apple Pay's 'discount' Can you explain this "discount" that issuing banks are giving back to Apple on Apple Pay [mobile wallet] transactions?
Trace Montara, Merchant level salesperson
What issues in payments are of most concern to you? What mobile solutions are you planning to implement in the next year? What would you do if you had the power to change one thing about the industry for the better? What does it really take to succeed as an ISO or merchant level salesperson? Is there a lingering question that has never been answered to your satisfaction? How are you planning to ensure your success in the coming year?
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