Stalled Visa plan to cut Apple Pay fees causing tension with card issuers

Banks and credit card issuers are at odds with Apple over some of the charges that apply to Apple Pay transactions, with Visa backing out of one change that would have cut fees paid to Apple for recurring payments.

Transactions that occur through Apple Pay has Apple taking a small fee from the banks, as a way to pay for the service’s operation. However, it appears that banks are getting restless over how much they pay to Apple for Apple Pay transactions in general.The unrest prompted Visa to propose a change to how it handled repeat transactions, such as gym memberships and payments to streaming services, according to sources and a document seen by The Wall Street Journal. Under the plans, this would have involved cutting the cost of transaction fees that would be paid out by banks, including those to Apple for Apple Pay-derived payments.

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