Posted by Chuck on September 17, 2017
Manufactured Spending

Published on September 17th, 2017 | by Chuck

31

Apple Pay ‘Venmo Killer’ Won’t Have Fees for Credit Card Payments?

Apple’s iOS 11 will release this week on Tuesday, September 19th. A new feature being introduced is the ability to use Apple Pay to pay friends with a simple text. Dubbed the ‘Venmo Killer’, text payments are free, apparently even when paying with debit or credit card, according to Time.

Time notes: There also doesn’t appear to be an additional fee for credit card transactions made with the payment tool. On Venmo and Square Cash, users who link up their credit cards to the app instead of their bank accounts pay a 3% fee on the money they send through the app.

When you get paid, your money is securely kept in Apple Pay Cash and instantly available for you to transfer to your bank account, send to someone, or spend with Apple Pay.

Person to person payments and Apple Pay Cash are available only in the U.S. on iPhone SE, iPhone 6 or later, iPad Pro, iPad (5th generation), iPad Air 2, iPad mini 3 or later, and Apple Watch. Account security checks may require additional time to make funds available.

The video shown on Time (pictured above) shows clearly that there aren’t any fees, though I’m not sure as to the source of that video.

I don’t consider this a scalable way of racking up credit card point, and wouldn’t recommend scaling regardless, but it’s a free way of paying friends without having to disclose bank or debit card information, and racking up a few credit card points along the way as well. I expect there’ll be some ingrained limits to prevent people from overusing the credit card feature.

Time mentions that this feature will become available as an update to iOS 11 sometime this fall, not initially at launch.



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Jonathan S
Jonathan S

If true, this is dead or severely restricted within 1 month

MoreSun
MoreSun

I don’t think Apple will let it go that long.

Joe S
Joe S

Agreed

gary
gary

what hasnt been determined, if completely free is if credit card companies will treat it as a cash advance.

Yup
Yup

Very good poont

geoffB
geoffB

I’d assume the “no charge for cc transactions” part is just for when you’re using it at merchants (just like they show in the video, and how it’s always been for the digital phone wallets that apple, android, etc use).

savemesf
savemesf

MSers versus Apple, not sure who would win lol

Wwllmm
Wwllmm

Who is willing to sacrifice their Apple account for however many days/weeks/months to get unlocked/reinstated for the team? I bet you can probably rip a few VGCs before the inevitable.

MarcoPolo
MarcoPolo

@Wwllmm
Send me an iPhone and I’ll sacrifice myself for the greater good of mankind.

Wany
Wany

Somehow, I remember seeing discussion back in June when this was first announced that person-to-person payment using debit/credit card is not free.

Found it,
https://www.recode.net/2017/6/5/15741636/apple-pay-p2p-venmo-competitor-apple-pay-cash-money-transfer

Jon
Jon

Debit is free, credit card is not

qmc
qmc

VGC/AGC?

AdamH
AdamH

I think this is fake news. It has been previously reported Green Dot is working behind the scenes as the provider of Apple Pay Cash and that CC will have a 3% fee. I don’t think we are going to be so lucky to get free CC transfers.

Ed
Ed

Time was expert at fake news for most of 2016.😀

Ferris
Ferris

Just like there are people who MS 7 figures per year, there will be people who abuse this and get it shut down quickly. Hopefully it would ban Apple IDs of these people. Could be nice to send a few $50-100 payments here and there and help with Minimum Spend, but otherwise it’s an easy way to get shut down. You don’t owe people $500 over and over.

qmc
qmc

Unless it’s share of rent maybe

parkdanil
parkdanil

Oh boy this ones gonna get blown away by MSers real fast.
These sort of things tend to lead to antitrust suits, monopolizing markets and such.

Elmer
Elmer

Ha! To think anything from Apple will be free to both parties is just being naive. Not a chance.

Nun
Nun

Time is never reliable and journalism is dead. They are sure to be wrong.

Ed
Ed

So true.

John
John

Apple doesn’t do free. Must be a typo somewhere

Michael H
Michael H

Another big question is if it counts as “Mobile Wallet Spending” for the purposes of the Altitude Reserves 3% return.

I’d send money to myself ALL DAY LONG and happily pay a 3% fee to get 4.5% back in travel..

Josh
Josh

Until they close your account 🙂

az
az

Upgraded to iOS 11, didn’t find apple pay button in iMessage.

jcb
jcb

I don’t think this is true. Every blog I’ve read about iOS 11 new features mentions a standard 2.7% fee I believe

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