After updating my billing address with both credit one accounts, they now work too.
But my capital one address is my current address.
So this does not seem to be a phone or apple pay problem, but capital one problem.
You could have gone a long way to a resolution by now if you just made a phone call.
I did, even talked to an account manager. Even he was stumped.
They put in a ticket to the technical eselations team.
Can take up to 3 days for them to call me.
I received an email from Digital Eseclations.
They said I'm not alone in this issue.