The Green Sheet Online Edition
December 08, 2014 • Issue 14:12:01
Clarifying the Apple Pay 'discount'
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 do you have to say?
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