Banks Pressuring Visa to Cut Back on Apple Pay Fees
A number of banks are currently pressuring Visa to make changes to the way it processes some payments made via Apple Pay, moves that would reduce the fees the banks pay to Apple for certain transactions, reports The Wall Street Journal.

At the heart of the issue are automatic recurring payments like memberships and streaming services. Visa is aiming to change the way it issues tokens for Apple Pay cards such that Apple would only receive a transaction fee on an initial subscription payment and not on subsequent transactions.
When Apple introduced Apple Pay in 2014, the iPhone had already clobbered music players, cameras and GPS systems. Banks and card networks worried it also would displace card payments.
Banks agreed to pay Apple 0.15% of each purchase made by their credit cardholders. (They pay a separate fee on debit-card transactions.) Those fees account for most of the revenue that Apple makes from its digital wallet, according to people familiar with the matter.
Aside from the fee arrangement, Apple garnered several other concessions from credit card issuers as it rolled out Apple Pay, and in exchange, Apple agreed not to launch its own credit card network to go up against Visa and Mastercard.
With the launch of Apple Card in partnership with Goldman Sachs, Apple has become more of a direct competitor to other banks, and some bank executives have reportedly been angered by Apple's move and are seeking ways to reduce the payments they make to Apple.
Apple has unsurprisingly informed Visa that it objects to the proposed change that would reduce the fees it receives on recurring transactions, so it remains to be seen whether Visa will follow through on its plans, which are scheduled to go into effect next year.
Popular Stories
As previously rumored, the next-generation iPhone 15 Pro and iPhone 15 Pro Max will feature a unified volume button and a mute button, according to leaked CAD images shared in a video on the Chinese version of TikTok and posted to Twitter by ShrimpApplePro.
Instead of separate buttons for volume up and volume down, the iPhone 15 Pro models are expected to have a single elongated button for...
Apple says iOS 16.4 is coming in the spring, which began this week. In his Sunday newsletter, Bloomberg's Mark Gurman said the update should be released "in the next three weeks or so," meaning a public release is likely in late March or early April.
iOS 16.4 remains in beta testing and introduces a handful of new features and changes for the iPhone. Below, we have recapped five new features ...
The iOS 16.4 update that is set to be released to the public in the near future includes voice isolation for cellular calls, according to notes that Apple shared today.
Apple says that Voice Isolation will prioritize your voice and block out the ambient noise around you, making for clearer phone calls where you can better hear the person you're chatting with and vice versa.
Voice...
A first-generation iPhone still sealed inside its box sold for $54,904 at auction, which is more than $54,000 over the original $599 price tag of the device when it was released in 2007.
The original iPhone was put up for sale by RR Auction on behalf of a former Apple employee who purchased it back when it first came out. Back in February, an original, sealed iPhone sold for over $63,000,...
The iOS 16.4 release candidate version that was provided to developers today appears to hint at a new set of AirPods that could be coming in the near future. According to @aaronp613, the beta features references to AirPods that have a model number of A3048 and an AirPods case with a model number of A2968.
There have been no rumors that new AirPods are on the horizon, and it is early for...
Apple today seeded the release candidate versions of upcoming iOS 16.4 and iPadOS 16.4 updates to developers for testing purposes, with the software coming a week after the launch of the fourth betas. The RCs mark the final version of the software that will be provided to the public in the near future. Registered developers are able to download the iOS 16.4 and iPadOS 16.4 updates...
Google today began allowing users to sign up to use Bard, its AI-powered chatbot that rivals Microsoft's Bing chatbot. First announced back in February, Bard is an experimental conversational AI service for Google Search.
Those interested in Bard can join Google's waitlist to get access, and some users have reported getting invitation emails just hours after signing up. There are a long list ...
Samsung today kicked off a special "Discover Samsung" event, which will be a week-long savings event focusing on Samsung monitors, smartphones, TVs, appliances, and more. While some deals will stick around the entire week (through March 26), others will refresh every day.
Note: MacRumors is an affiliate partner with Samsung. When you click a link and make a purchase, we may receive a small...
Top Rated Comments
If only we all had cash in the bank and could ACH it for FREE. But no, as soon as its a credit card, someone has to pay for the transactions. Visa and MasterCard don't do anything other than pass transaction numbers around, yet make 3%. Apple's 0.15% seems more reasonable, though they too are only passing numbers back and forth to facilitate a transaction they had nothing to do with.
It's interesting that Visa is saying they're getting squeezed by other card issuers. That sounds like a money grab by Visa, since other issuers will also have the same change applied to them.
And in any case the change makes no sense. A transaction is a transaction. Whether it's a subscription or not makes no difference.
Edit: one other interesting thing is that the article talks about banks. Really, they should be called "card issuers", who are not necessarily banks. Or is the article saying that bank-based issuers pay the fees and the non-bank ones do not?
It took Apple and a pandemic for wireless payments to become a common thing in the city I live.
Also, I just spent 9 months working in Europe. Before I would need to pay everything in cash, losing $10 for the withdrawal otherwise I would have to pay with credit card which brought a $5+ fee for every transaction.
With Apple Pay- 0 fees, and the waiter just comes to the table with a handheld scanner, I point my phone, all done, 2% cash back.