topic Re: does using Apple Pay affect how transactions are coded? in Credit Cards

does using Apple Pay affect how transactions are coded?

idunnomypassword1231 — Sat, 17 May 2025 21:59:35 GMT

I added my us bank cash + to apple pay and bought fast food. does apple pay affect how transactions are coded when i use it to pay? ie mcdonalds being coded as anything else other than fast food. thanks!

Re: does using Apple Pay affect how transactions are coded?

ElvisCaprice — Sun, 18 May 2025 06:51:47 GMT

It could, happens with Paypal but to my benefit.

Re: does using Apple Pay affect how transactions are coded?

ptatohed — Sun, 18 May 2025 07:31:51 GMT

I don't know anything about paying with fruit but I had this same concern with G-Pay. I've been enjoying using G-Pay to pay for my fast food when using their apps. So far, using G-Pay for fast food payment has been giving me the 'dining' cat (at least with my citi Custom Cash (5%) and my Chase SP (3%)).

Re: does using Apple Pay affect how transactions are coded?

ElvisCaprice — Sun, 18 May 2025 09:05:08 GMT

@ptatohed wrote:
I don't know anything about paying with fruit but I had this same concern with G-Pay. I've been enjoying using G-Pay to pay for my fast food when using their apps. So far, using G-Pay for fast food payment has been giving me the 'dining' cat (at least with my citi Custom Cash (5%) and my Chase SP (3%)).

Yea, Gpay or now as Google Wallet only, is a little different than Paypal or Apple Pay. Google Wallet only facilitates transactions, no separate deposit account like Paypal or Apple. Think of Google Wallet as a single transaction, whereas Paypal and Apple as a dual transaction, thus the one transaction can disguise the other.

Re: does using Apple Pay affect how transactions are coded?

Follower — Sun, 18 May 2025 11:34:44 GMT

It should not affect transaction coding. I use Apple Pay and have never needed a separate deposit account as ElvisCaprice mentioned. Think of it as an alternative to tapping your card to pay; all transactions just appear as normal charges to your card and the merchant.

Re: does using Apple Pay affect how transactions are coded?

ElvisCaprice — Sun, 18 May 2025 11:45:08 GMT

@Follower wrote:
It should not affect transaction coding.

It does for me or at least how the CC issuer categorizes the transaction. And even that varies. YMMV

Re: does using Apple Pay affect how transactions are coded?

Follower — Sun, 18 May 2025 17:51:19 GMT

@ElvisCaprice wrote:
YMMV

Apparently so.

My most frequent use of Apple Pay is taking public transportation with a designated card set to Express Transit, to let me in with one tap of my watch. Whether I use my Bank of America Preferred Rewards Visa for its travel category or my Citi Rewards+ MC for the bump up to 10 points on small transactions, neither has ever failed to code correctly as transit. (The monthly MasterCard credit for using my city's subway system* also correctly kicks in.) I also use AP to get lunch a lot, and nothing has ever not coded as dining using it as opposed to tapping the physical card.

If you have the time and/or inclination, could you give an example of a charge that you've seen has gone through differently when you've tapped one of your cards, and then another time used Apple Pay with that same merchant and card...?

(*Side note: Do MyFICO members know about this $2.50/month credit?)

Re: does using Apple Pay affect how transactions are coded?

ptatohed — Mon, 19 May 2025 07:16:32 GMT

@Follower wrote:
@ElvisCaprice wrote:
YMMV
Apparently so.

My most frequent use of Apple Pay is taking public transportation with a designated card set to Express Transit, to let me in with one tap of my watch. Whether I use my Bank of America Preferred Rewards Visa for its travel category or my Citi Rewards+ MC for the bump up to 10 points on small transactions, neither has ever failed to code correctly as transit. (The monthly MasterCard credit for using my city's subway system* also correctly kicks in.) I also use AP to get lunch a lot, and nothing has ever not coded as dining using it as opposed to tapping the physical card.

If you have the time and/or inclination, could you give an example of a charge that you've seen has gone through differently when you've tapped one of your cards, and then another time used Apple Pay with that same merchant and card...?

(*Side note: Do MyFICO members know about this $2.50/month credit?)

I am unaware of a MC monthly $2.50 subway credit. Not that there are any subways around here, but please do explain @Follower

Re: does using Apple Pay affect how transactions are coded?

Follower — Mon, 19 May 2025 17:48:22 GMT

@ptatohed wrote:
I am unaware of a MC monthly $2.50 subway credit. Not that there are any subways around here, but please do explain @Follower

Sure. Info is on this page.

It lasts until the end of the year. Hidden near the end of the FAQs is who doesn't support it: Notably Bank of America (not too surprising since they overwhelmingly offer Visa cards), Capital One, and Goldman Sachs Apple Card.

Re: does using Apple Pay affect how transactions are coded?

ptatohed — Mon, 19 May 2025 18:46:40 GMT

@Follower wrote:
@ptatohed wrote:
I am unaware of a MC monthly $2.50 subway credit. Not that there are any subways around here, but please do explain @Follower
Sure. Info is on this page.

It lasts until the end of the year. Hidden near the end of the FAQs is who doesn't support it: Notably Bank of America (not too surprising since they overwhelmingly offer Visa cards), Capital One, and Goldman Sachs Apple Card.

That is amazing. This particular offer I can't beny from but the concept is very intriguing. It has never dawned on me that the network (MC) could provide offers to card users. I have just always assumed that it had to be the bank/issuer that could/would provide offers. Thanks for sharing.

Re: does using Apple Pay affect how transactions are coded?

dfwxjer — Mon, 19 May 2025 19:42:42 GMT

The merchant MCC passes through Apple Pay so transactions earn rewards as though you swiped/dipped the physical card.

Re: does using Apple Pay affect how transactions are coded?

ElvisCaprice — Mon, 19 May 2025 20:41:30 GMT

I don't use Apple Pay, just Paypal, assumed it was similiar if not more liberal with merchant codes. Seems not to be the case as you all are saying here?

With Paypal there are certain bills if payed thru paypal will trigger an online purchase with my BoA CCR, whereas if I do the transaction direct, without Paypal, I do not receive the online purchase at BoA CCR.

Re: does using Apple Pay affect how transactions are coded?

Follower — Tue, 20 May 2025 08:06:16 GMT

@ElvisCaprice wrote:
I don't use Apple Pay, just Paypal, assumed it was similiar if not more liberal with merchant codes. Seems not to be the case as you all are saying here?
With Paypal there are certain bills if payed thru paypal will trigger an online purchase with my BoA CCR, whereas if I do the transaction direct, without Paypal, I do not receive the online purchase at BoA CCR.

Is it possible that you are thinking of Apple Cash, rather than Apple Pay? That is their service that's very similar to PayPal and Venmo and has the deposit account you mentioned earlier. I don't use it but I could certainly imagine that it would mess with rewards.

Re: does using Apple Pay affect how transactions are coded?

ElvisCaprice — Tue, 20 May 2025 09:18:02 GMT

@Follower wrote:
@ElvisCaprice wrote:
I don't use Apple Pay, just Paypal, assumed it was similiar if not more liberal with merchant codes. Seems not to be the case as you all are saying here?
With Paypal there are certain bills if payed thru paypal will trigger an online purchase with my BoA CCR, whereas if I do the transaction direct, without Paypal, I do not receive the online purchase at BoA CCR.
Is it possible that you are thinking of Apple Cash, rather than Apple Pay? That is their service that's very similar to PayPal and Venmo and has the deposit account you mentioned earlier. I don't use it but I could certainly imagine that it would mess with rewards.

Oh, I didn't know there was a difference. Not an Apple guy. PC/Android all the way.

Re: does using Apple Pay affect how transactions are coded?

Follower — Tue, 20 May 2025 14:20:08 GMT

@ElvisCaprice wrote:
Not an Apple guy. PC/Android all the way.

I sensed that.

Re: does using Apple Pay affect how transactions are coded?

UncleB — Sat, 24 May 2025 04:52:46 GMT

I've been using Apple Pay since last December so I'm fairly new, but I use it often due to having the U.S. Bank AR.

In my experience the MCC has been transmitted exactly the same as using my physical card.

Note that Apple Pay is a very different concept from Paypal, which is a third-party that has to pass-through the purchase to the bank. With Apple Pay the token used by the phone to make the purchase is provided by the issuer (not Apple) so there's no middle man to mess with the MCC or any other data.