And the bank also knows that the purchase was charged to a token generated by ApplePay and thus will change the charge amount on that token when you ask for a refund on a purchase. Thus Apple will not get their cut and you will not get any iRewards point for that purchase. But my guess is that the merchant will refund the purchase using the token. It's the number that will appears on your receipt and the transaction number they use for the purchase.
You're talking about two different things. You asked how charges to your account would work with a token, but that first option for ?Pay Rewards wouldn't go through the bank at all. It would generated by the Passbook app and then sent to Apple directly. The only way it could possibly be reversed is if you then use ?Pay to cancel the purchase, but, as I stated, if you use a physical card, that wouldn't go through Passbook, nor would your bank be able to tell Apple because Apple doesn't collect that kind of info.
Of course Apple would not know what you buy, at least not as it now stands.
Those retailers with iBeacons, iOS apps, and Apple Pay will probably be able to link a name and profile with your meanderings, targeted ads and actual purchases but that's not Apple directly. Note tho that there's been rumors of Apple rolling out a rewards program for using Apple Pay. If that becomes a reality I'm not sure Apple would still not be tracking you and your purchases. So far of course that's only a rumor and may never ship.
If the reward is for the amount spent, regardless of what was purchased, then Apple couldn't care less to track what you bought using ApplePay. So long as you pay with ApplePay whenever possible. The more ApplePay is used, the more Apple gets from the banks for the ApplePay purchases. But Apple makes so little from ApplePay purchases (.15 per $100) that I don't see any ApplePay reward program being worth it for the users. Unless Apple takes a loss for the sake of increase marketshares. And we all know that's not likely to occur. Plus I would think that not being tracked by the retailer or Apple for ApplePay purchases is a good enough reason for many to choose ApplePay (whenever possible.) rather that some other method to pay.
Apple is not like Google, where 80% of their revenue depends on selling the personal data of their users. The amount of revenue ApplePay will generated (from ApplePay purchases) will be less than a rounding error, in just the "Other" catagory that it will fall under, for at least another 2 or 3 generations of iPhones. Even though the profit margin (for the revenue ApplePay generates) is probably over 80%.
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You're talking about two different things. You asked how charges to your account would work with a token, but that first option for ?Pay Rewards wouldn't go through the bank at all. It would generated by the Passbook app and then sent to Apple directly. The only way it could possibly be reversed is if you then use ?Pay to cancel the purchase, but, as I stated, if you use a physical card, that wouldn't go through Passbook, nor would your bank be able to tell Apple because Apple doesn't collect that kind of info.
Of course Apple would not know what you buy, at least not as it now stands.
Those retailers with iBeacons, iOS apps, and Apple Pay will probably be able to link a name and profile with your meanderings, targeted ads and actual purchases but that's not Apple directly. Note tho that there's been rumors of Apple rolling out a rewards program for using Apple Pay. If that becomes a reality I'm not sure Apple would still not be tracking you and your purchases. So far of course that's only a rumor and may never ship.
If the reward is for the amount spent, regardless of what was purchased, then Apple couldn't care less to track what you bought using ApplePay. So long as you pay with ApplePay whenever possible. The more ApplePay is used, the more Apple gets from the banks for the ApplePay purchases. But Apple makes so little from ApplePay purchases (.15 per $100) that I don't see any ApplePay reward program being worth it for the users. Unless Apple takes a loss for the sake of increase marketshares. And we all know that's not likely to occur. Plus I would think that not being tracked by the retailer or Apple for ApplePay purchases is a good enough reason for many to choose ApplePay (whenever possible.) rather that some other method to pay.
Apple is not like Google, where 80% of their revenue depends on selling the personal data of their users. The amount of revenue ApplePay will generated (from ApplePay purchases) will be less than a rounding error, in just the "Other" catagory that it will fall under, for at least another 2 or 3 generations of iPhones. Even though the profit margin (for the revenue ApplePay generates) is probably over 80%.