Apple Pay person-to-person transfers will be free with debit card, incur 3% fee with credi...

Posted:
in iPhone
This fall's launch of iOS 11 will include secure person-to-person money transfers authorized by Apple Pay, but if you use it with a credit card instead of debit, the service comes with a caveat: an industry-standard 3 percent fee.




Apple's fee, which was first reported by Re/code, is right in line with competitors such as Venmo and Square Cash. The 3 percent fee goes toward covering the overhead associated with credit card transactions.

For those who don't want a 3 percent fee tacked onto a person-to-person transfer, a debit card offers the same service with no fee.





Once money is transferred, it will be available in a prepaid "Apple Pay Cash" card through partner Green Dot. The cash card can be used to make Apple Pay purchases in stores, in apps, or on the web, or it can be transferred to the user's bank account.

P2P Apple Pay payments will be initiated through a dedicated app in Apple's Messages app in iOS 11. The service will even integrate with Siri's new machine learning capabilities, offering suggested amounts to send based on the context of conversations had within messages.
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Comments

  • Reply 1 of 33
    Any idea on the transfer limit yet?
  • Reply 2 of 33
    SpamSandwichSpamSandwich Posts: 31,184member
    Green Dot, eh?
  • Reply 3 of 33
    Green Dot, eh?
    I had the same reaction. Payday loans next? If you read the Wikipedia article, they don’t have an awesome reputation (https://en.m.wikipedia.org/wiki/Green_Dot_Corporation). Seems an odd partnership for Apple. 
  • Reply 4 of 33
    sflocalsflocal Posts: 4,652member
    I'm sure MCX's CurrentC is prepping the next big competition to ApplePay.  /s
    StrangeDayslostkiwi
  • Reply 5 of 33
    That fee is to be expected and presumably a person to person transfer also won't be considered as a purchase by credit cards; it would be considered a cash advance which potentially (depending on your bank) comes with its own one off % fee added by the bank and would incur interest from day one (no interest free days) and will have its own special interest rate (often much higher than the interest rate for purchases). 

    Here's hoping people realize the likelihood of this.
    laytechjony0
  • Reply 6 of 33
    kevin keekevin kee Posts: 1,041member
    Obviously nothing is free including loan, except if it was your own money.  Is the Apple Cash acting like a virtual money? How does that work when purchasing on web and at brick store? Hmmm questions.
  • Reply 7 of 33
    That fee is to be expected and presumably a person to person transfer also won't be considered as a purchase by credit cards; it would be considered a cash advance which potentially (depending on your bank) comes with its own one off % fee added by the bank and would incur interest from day one (no interest free days) and will have its own special interest rate (often much higher than the interest rate for purchases). 

    Here's hoping people realize the likelihood of this.
    My expectation is that the likelihood of this is very low.
  • Reply 8 of 33
    thehectathehecta Posts: 77member
    That fee is to be expected and presumably a person to person transfer also won't be considered as a purchase by credit cards; it would be considered a cash advance which potentially (depending on your bank) comes with its own one off % fee added by the bank and would incur interest from day one (no interest free days) and will have its own special interest rate (often much higher than the interest rate for purchases). 

    Here's hoping people realize the likelihood of this.
    Not likely. P2P payments in Paypal and Venmo always code as purchases no problem. You are incorrect.
    StrangeDayspatchythepirate[Deleted User]
  • Reply 9 of 33
    larryjwlarryjw Posts: 375member
    Green Dot, eh?
    I had the same reaction. Payday loans next? If you read the Wikipedia article, they don’t have an awesome reputation (https://en.m.wikipedia.org/wiki/Green_Dot_Corporation). Seems an odd partnership for Apple. 
    According to the Wikipedia article, Green Dot has a decidedly negative reputation -- one or two stars out of 5. Having reviewed recent comments on Amazon, even the one star ratings don't indicate how bad they are. Recent comments refer to them as criminal, scam.

    I wouldn't expect Apple to use this company. Big mistake if they do, unless they were planning to buy out and then transform GreenDot, or is going to establish their own similar system, and just needed to name some entity now, adding a reliable mechanism before launch. 
    edited June 2017
  • Reply 10 of 33
    Green Dot, eh?

    Where's the reference to Green Dot?
  • Reply 11 of 33
    wigbywigby Posts: 690member
    Green Dot, eh?

    Where's the reference to Green Dot?
    "Once money is transferred, it will be available in a prepaid "Apple Pay Cash" card through partner Green Dot."
  • Reply 12 of 33
    SoliSoli Posts: 8,953member
    1) So I use a credit card to send someone $100 do they get $97 or do I get charged $103. I'm guessing the latter.

    2) Will using a CC work like a purchase since it's going through Green Dot or will this work like a cash advance, which has higher interest rates and different term limits?
  • Reply 13 of 33
    zoetmbzoetmb Posts: 2,453member
    This all sounds very un-Apple like.   Hope they clean this up before launch.
    london11lostkiwi
  • Reply 14 of 33
    NotsofastNotsofast Posts: 386member
    Green Dot, eh?
    I had the same reaction. Payday loans next? If you read the Wikipedia article, they don’t have an awesome reputation (https://en.m.wikipedia.org/wiki/Green_Dot_Corporation). Seems an odd partnership for Apple. 
    Kids are taught starting in junior high not to cite or trust Wikipedia because so much of it is incorrect as anyone can throw stuff up.  Are there any reputable sources that compare the reputation of the various services?  
    lostkiwi
  • Reply 15 of 33
    london11london11 Posts: 62member
    Disappointing.
  • Reply 16 of 33
    NotsofastNotsofast Posts: 386member

    larryjw said:
    Green Dot, eh?
    I had the same reaction. Payday loans next? If you read the Wikipedia article, they don’t have an awesome reputation (https://en.m.wikipedia.org/wiki/Green_Dot_Corporation). Seems an odd partnership for Apple. 
    According to the Wikipedia article, Green Dot has a decidedly negative reputation -- one or two stars out of 5. Having reviewed recent comments on Amazon, even the one star ratings don't indicate how bad they are. Recent comments refer to them as criminal, scam.

    I wouldn't expect Apple to use this company. Big mistake if they do, unless they were planning to buy out and then transform GreenDot, or is going to establish their own similar system, and just needed to name some entity now, adding a reliable mechanism before launch. 
    Again, wikipedia and someone posting on Amazon are hardly credible sources. Competitors, disgruntled employees, etc., can post anything they want.  Are there any reputable studies, sources, etc.?  It's hard to believe that Apple having its pick of partners would pick a company with a terrible reputation as a criminal scam to handle your money.  But again, if you have a reputable source that Green Dot is engaged in criminal activity, I'll be glad to share with Apple as they need to know.
  • Reply 17 of 33
    jdwjdw Posts: 751member
    Still so many unanswered questions.

    What is the fee to withdraw funds to your bank?

    What are the fees, if any, for international transfers which would include transfers to one's bank outside the US, most likely in a currency other than US dollars? 

    What is the exact URL for the webpage on Apple's website that describes in detail all of the fees? 


  • Reply 18 of 33
    78Bandit78Bandit Posts: 232member
    I hope the automatic payment suggestion is limited to people already in my address book or I'm going to expect a sudden influx of random, spam messages from scammers in China saying "hey, what about the $100 you owe me" hoping I just click on the message to authorize payment. I'm sure Apple will shut their account relatively quickly, but I bet at least a few suckers can be conned before that happens.
    douglas baileylostkiwi
  • Reply 19 of 33
    chiachia Posts: 699member
    kevin kee said:
    Obviously nothing is free including loan, except if it was your own money.  Is the Apple Cash acting like a virtual money? How does that work when purchasing on web and at brick store? Hmmm questions.
    Fundamentally all money, including banknotes and coins, are a virtual representation of perceived value. 

    But in answer to the specifics of your question, presumably this Apple Cash card will be just like any other bank card that allows the transfer of  money, as opposed to holding virtual tokens.
  • Reply 20 of 33
    laytechlaytech Posts: 144member
    It does seem like a fantastic new feature, easily made, and for Apple, allowing the money to first go into an apple account, which you can then use for apple pay purchases or buy app store is good and makes good business sense, i would prefer to see the option to auto transfer it to your bank. Whilst, I am sure it is easy to transfer it out, it's another step which I know my spouse just couldn't be bothered doing, but if it went direct then it would be a no brainer. Clever though, because you can imagine people will have money sat in their apple account, and it will all be earning interest for apple. One person may just have a few dollars sat there but if you have millions of customers with a couple of dollars unused in their apple account, that is a lot of money in interest. As noted above, is someone pay another person via credit card, it will have to be treated as a payment not a cash withdrawal as the interest on cash withdrawals is eye wateringly high. If it is treated as a payment, it also has the potential to be a way for people to get cash withdrawals (via a friend) and only cost the 3% transaction fee. It will be interesting to see how this plays out, but the other question is, is it reliant on your own bank to allow it? If so, I can just see the Australian banks blocking it again or adding fees in addition to the 3%. Either way, I love this new feature, simple, elegant and convenient.
    bshanklostkiwi
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