What are the disadvantages of Apple Pay for merchants?

Asked by: Madisen Fisher  |  Last update: February 26, 2026
Score: 4.1/5 (43 votes)

There are a few downsides to Apple Pay. The biggest con is that while Apple Pay is popular, there are still some customers who don't know how to use it. Your team will need to be knowledgeable enough to educate some new users. You may also need to upgrade your terminals if they aren't NFC-enabled.

Is Apple Pay safe for merchants?

Accepting Apple Pay enhances security and fraud protection. Apple Pay uses a unique Device Account Number and a dynamic security code for each transaction, so actual card details are never shared with merchants or transmitted during the payment process.

Does Apple Pay charge a fee to merchants?

Millions of store locations already accept Apple Pay, and although Apple doesn't charge merchants fees to accept the payment method, you will still pay transaction fees as you would typically on any other credit and debit sale. Credit card swipe fees in the U.S. range from 2 percent to 4 percent.

What are common issues with Apple Pay?

The most common issue with paying with an iPhone is choosing a card that is incompatible with the system and does not support Apple Pay. So, first of all, make sure your card supports Apple Pay. However, some other issues can also cause malfunctions: There's not enough memory on the device.

Why are businesses not accepting Apple Pay?

While the Apple Pay user experience is more seamless, it is dependent on retailers having contactless terminals in place, which many still do not. Apple Pay also works with many major credit cards, which is another plus since consumers can simply link up their existing credit cards.

🔥 Apple Pay Review: Pros and Cons

28 related questions found

What are the cons of Apple Pay?

Cons of Apple Pay

Apple Pay is not accepted at all retailers and not compatible with all banks or card issuers. Backup may be required, just in case. Apple Pay only works if your phone does. You may still need to carry a physical credit card as a backup in case your battery dies or you misplace your phone.

Which retailers don t accept Apple Pay?

Comparison with Other Retailers

Walmart isn't the only holdout on accepting Apple Pay, though. Home Depot partnered with PayPal, and now doesn't accept either Apple Pay or Google Wallet. Arby's, Applebees, and Hobby Lobby also don't accept Apple Pay.

Is it safe to put a credit card in Apple Wallet?

When you add a credit, debit, prepaid, or transit card (where available) to Apple Pay, information that you enter on your device is encrypted and sent to Apple servers. If you use the camera to enter the card information, the information is never saved on your device or photo library.

Why is Apple Pay declining?

Some possible reasons for why the transaction is declining even though the digital card still appears in the Apple wallet include: Your card has been temporarily locked. Your card or the transaction account has insufficient funds or limit for the transaction. An incorrect card PIN has been entered at the terminal.

Why does Apple Pay not work anymore?

Another way to see why Apple Pay is not working is to check Apple System Status to make sure Apple Pay is systemically online and has a green status light. If it does not, then it is not just your account and you'll have to wait until the system is back up and running to use Apple Pay.

What does the merchant see when I use Apple Pay?

After you authorize the payment, other information requested by the merchant, such as a device- or merchant-specific account number, your shipping address, or email address, is also provided. The card number from your credit, debit, or prepaid card is not provided when you use Apple Pay.

Which is safer, PayPal or Apple Pay?

Many people wonder whether Apple Pay is safer than traditional credit cards or other payment services like PayPal. In many cases, Apple Pay offers a higher level of security.

Why does Walmart not use Apple Pay?

Walmart's decision not to accept Apple Pay is strategic. The primary reason is to promote its payment solution, Walmart Pay. By encouraging customers to use Walmart Pay, Walmart aims to retain control over transaction data and reduce dependency on third-party payment systems.

Which is safer, credit card or Apple Pay?

Apple Pay provides security

So even if your phone is stolen, no one else can use your Apple Pay to buy something. On the other hand, a thief could easily use your stolen credit card at a store that doesn't match IDs and cards.

Can the bank see who used my card online?

Banks and law enforcement can use transaction details, surveillance footage, and digital tracking methods to identify the perpetrator, with various results.

Does Apple Pay generate a different card number?

Whenever a card number is added to Apple Pay, Apple creates a specific combination number that's unique to that card number and device, this is a security feature directly from Apple Pay.

Is there a problem with Apple Pay?

User reports indicate no current problems at Apple Pay

that allows users to make payments in person, in iOS apps, and on the web. It is supported on iPhone, Apple Watch, iPad, and Mac.

Why is Apple charging me?

A charge on your financial statement from apple.com/bill could be for apps, subscriptions, music and movie purchases, or more from Apple.

What is the daily limit for Apple Pay?

General sending and receiving limits

Per message, you can send or receive a maximum of $10,000. Within a 7-day period, you can send or receive a maximum of $10,000.

Is there any risk with Apple Pay?

Key Takeaways. Apple Pay is certainly safer than cash and it has more safety features than credit cards. Some security features, like two-factor identification, are optional. A complicated passcode is still a good idea.

Which is better, Zelle or Apple Pay?

Clark's Take on Whether Apple Pay Is a Safe Alternative to Zelle. Clark says: “It's a different kind of tool, but Apple Pay is a well-thought-out safe alternative.” It's no wonder that a user may be “freaked out” using Zelle. Inside the Zelle app, there is no way to request a refund.

What grocery stores take Apple Pay?

Grocery stores and drug stores that accept Apple Pay:
  • Acme Markets.
  • Albertsons.
  • ALDI.
  • Bashas'
  • BI-LO.
  • Cub Foods.
  • Costco.
  • CVS.

Do gas stations take Apple Pay?

Most major gas stations (like Chevron and BP) accept Apple Pay, but not at all locations. Some gas stations require an additional app to use Apple Pay in-store, at the pump, or both. You can use Apple Maps to find gas stations that accept Apple Pay.

Does Amazon accept Apple Pay?

Amazon Payment Services supports three popular digital wallets: Apple Pay, Masterpass, and Visa Checkout. Accepting payments via digital wallets offers two key benefits: Paying via a digital wallet is more convenient for your customers.

Does McDonald's take Apple Pay?

The answer is YES. The famous chain of fast-food restaurants accepts all mobile wallet payments at all of its locations to ensure seamless and quick payments for customers. All McDonald's drive-thru spots have the necessary equipment, such as NFC card readers, to accept Apple Pay transactions.