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Respected Contributor
Posts: 2,541
Registered: ‎03-15-2010

Higher charge due to method of payment

A friend of ours is a business owner and last night a dinner we were talking and she noted that if she accepts payment via iOS Apple iTunes she loses 30% to Apple.

 

YES 30% ( I assumed she meant 3%) Apple charges the merchant 30% transaction fee!! Companies are lobbying to get this changed in the mean time the goverment is allowing merchants to up charge iOS purchasers 30% more to account for the fees.

 

What is Apple thinking?!?!  

 

 

Valued Contributor
Posts: 892
Registered: ‎05-09-2014

Re: Higher charge due to method of payment

Well, Apple is discontinuing iTunes very soon, so her problems may be over at that time. No iTunes, no payment that way. 

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Respected Contributor
Posts: 2,250
Registered: ‎11-03-2018

Re: Higher charge due to method of payment

That doesn't seem right.

 

Maybe she misunderstood...

Respected Contributor
Posts: 2,541
Registered: ‎03-15-2010

Re: Higher charge due to method of payment


@gizmogal wrote:

Well, Apple is discontinuing iTunes very soon, so her problems may be over at that time. No iTunes, no payment that way. 


Not iTunes the music/movie store it is the backend method of iOS payment system.  When iPhone users use iPay to make payments it is processed through Apple as opposed to Visa or MC etc.  I assume Apple Watch is the same way?

Honored Contributor
Posts: 9,375
Registered: ‎03-09-2010

Re: Higher charge due to method of payment

No idea what Apple's thought process is, but why would a merchant agree to those terms?   Lots of merchants used to refuse AmEX cards because they had to pay a much, much, much smaller excess fee.

 

As a consumer, I don't pay all that much attention to the fees retailers have to pay.  I have a hard enough time protecting me -  they have to protect themselves -  30%????  Can't imagine anything they'd be getting for that kind of cut!

Respected Contributor
Posts: 2,541
Registered: ‎03-15-2010

Re: Higher charge due to method of payment

 


@Bri369 wrote:

That doesn't seem right.

 

Maybe she misunderstood...


 

Yes I assumed she meant 3%, she showed me the entire story online and the lobbying efforts.  My DH who is in the retail sector was surprised I was unaware of this situation.  

The only relief in the near future is refuse iOS payment or add a 30% surcharge.

I am not an Apple user so.........

Respected Contributor
Posts: 3,803
Registered: ‎03-10-2010

Re: Higher charge due to method of payment

Also, good idea to keep bank check on hand. Online DMV states they now take debit/credit. I noticed small sign stating 5% assessment fee if one doesn't pay check / cash. Nothing mentioned online. Bummer. Administration fees passed along to consumer.

"I took a walk in the woods and came out taller than the trees." Henry David Thoreau
Esteemed Contributor
Posts: 7,819
Registered: ‎03-09-2010

Re: Higher charge due to method of payment

Did she mean Apple Pay?

 

30%???  No way. 


Why is it, when I have a 50/50 guess at something, I'm always 100% wrong?
Respected Contributor
Posts: 2,250
Registered: ‎11-03-2018

Re: Higher charge due to method of payment


@mememe wrote:

 


@Bri369 wrote:

That doesn't seem right.

 

Maybe she misunderstood...


 

Yes I assumed she meant 3%, she showed me the entire story online and the lobbying efforts.  My DH who is in the retail sector was surprised I was unaware of this situation.  

The only relief in the near future is refuse iOS payment or add a 30% surcharge.

I am not an Apple user so.........


I can't see a business agreeing to those terms.

Honored Contributor
Posts: 15,548
Registered: ‎11-25-2011

Re: Higher charge due to method of payment

This isn’t new.

Businesses are being charged for regular ‘ole

MasterCard/Visa/AmEx/etc payments.

Now is it 30%? Probably not, but the business still

has to pay for the convenience.