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Apple refuses self-branded gift cards for iPhone purchases

By Justin Mann, TechSpot.com
Published: October 30, 2007, 11:35 AM EST

The controversy with Apple refusing to accept cash for iPhones is heating up. Now it seems that not only is Apple refusing cash, insisting on credit or debit cards instead, but is also even refusing their self-branded gift cards. Whereas they might have had some water to hold with not allowing cash or even 3rd party gift cards, Apple's own gift cards being refused is another thing altogether.

The real tricky part is the fine print. Apple doesn't claim that the iPhone is excluded from their gift cards, and in fact says that more or less you can purchase whatever you want with them. The speculation is that they are treading into dangerous legal territory now. While people are already willing to sue over just about anything these days, it seems bizarre that Apple would make themselves such an obvious target in this case.

All of this comes back to Apple not wanting to people to mod or hack the iPhone – or at the very least not profit from doing such. I can understand the latter, but after so many years of Apple products being tweaked with it seems that they are losing touch with a large portion of their customer base. In fact, about a fifth of their iPhone customer base.

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User Comments (1)

Post a comment
gpatrick900
on November 13, 2007
7:41 AM
If they take the MasterCard or Visa debit cards, they can not refuse to take the Visa or Mastercard gift cards. The honor all card rule still applies. If they do not want to take the visa or Mastercard giftcards or prepaid debit cards. They or actual their processor has to be setup to reject all type of debit card, while still allowing all types of credit cards.

Merchants can do the following
take only credit cards (Must accept all forms prepaid, giftcard, secure card,etc )
take only signature debit cards (Must accept all forms prepaid, girftcard,etc)
take only pin based debit cards (No requirements for the most part*)
take cash only

It used to be they had to take all forms of signature cards. Do the merchant lawsuit. They have a choice.

The tracking policy may also violate the credit card policy and some laws.

*interlink & maestro networks may have some requirements

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