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Apple no-cash policy for iPad takes some by surprise

Update: Apple has now reversed the no-cash policy.

As loyal readers know, Apple stores are not particularly cash-friendly; in the case of the iPhone and the iPad, they're downright cash-hostile. Both devices require a credit or debit card for purchase, although you can waltz down the block and buy an iPad with cash at Best Buy if you like (and you can use a gift card for iPhone, but not for iPad).

There are some points on Apple's side for the pay-with-plastic requirement (the primary one being that it's hard to enforce the two-per-person purchase limit without some way to track buyers), but it's clear that the rule is a source of annoyance to some potential customers. Now the annoyance is getting magnified.

In a post that is destined to be enshrined under the Wikipedia entry for "irate screed," David Gewirtz at ZDnet reacts to this KGO-TV story about Diane Campbell, a Palo Alto woman who tried (and failed) to buy herself an iPad using good old greenbacks. And when I say Gewirtz reacts, I mean he absolutely goes medieval about this "outrageous" miscarriage of justice.

"Apple's policy of not accepting cash is a direct slap in the face to hardworking Americans - and to our American way of life." Yikes! "Apple is dangerous. And, as we saw in the case of Diane Campbell, Apple is becoming an out-of-control, discriminatory monster." Wow!

After finding a fire extinguisher to put out this smoldering upholstery, let us note the following points. Gewirtz suggests that Apple is discriminating against Campbell (who is disabled and on a fixed income) and indeed against all disadvantaged Americans by refusing to accept cash -- but Apple's policy is clearly stated, long-standing and applied equally to all customers, so 'discriminatory' is a bit of a stretch. He also calls Apple "elitist," "dangerous" and says "This time, the company has gone too far" -- but there are ways to get an iPad with cash or a check, including heading for Best Buy or enlisting a friend with plastic.

Gewirtz references cash as "legal tender," but of course there is no legal mandate that a particular business or entity must accept a particular method of payment (just try paying your plumber in coins). And Gewirtz's sense of moral outrage doesn't seem particularly tuned to the risks Apple Store employees would face if required to handle and secure thousands of bucks daily from cash iPad sales, even though we know that they are already targets for thieves.

You can't help but feel bad for Ms. Campbell on her fruitless shopping trip, even though the reality of cash-free storefronts (and airplanes, and city offices) is nothing new. But the KGO "7 On Your Side" reporter could have saved plenty of time and trouble -- not to mention David Gewirtz's near-aneurysm -- by simply offering to put the iPad on his credit card and taking the cash from Campbell. Frankly, a quick-thinking Apple Store manager who overheard the conversation between Campbell and the checkout clerk could have done the same; it would have been breaking a rule, but it would have helped the company dodge a PR sting.

[Hat tip to Shawn King]

Photo remixed from http://www.flickr.com/photos/sis/ / CC BY 2.0

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iPad

Update: Apple has now reversed the no-cash policy. As loyal readers know, Apple stores are not particularly cash-friendly; in the case of...
 

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Bort

Is there anything in Apple's retail policy regarding the barter of chickens?

May 20 2010 at 4:49 PM Report abuse rate up rate down Reply
Jawn

Here is Canada. I paid for my 27" iMac, and my 13" MBP with cash. Because my credit limit (on credit card) was low. Maybe I should do the same with the iPad.

May 19 2010 at 4:50 PM Report abuse rate up rate down Reply
victoryofsorts@gmail.com

From what I was told by an Apple Store Employee it's about quality control. People buy these things (as they did with the phones) by the hundreds, and then sell them on the black market for huge mark ups. Apple knows it has something worth something (like I guess the Cabbage Patch kid, or whatever the hot fad is) and they want to ensure that you (the user) is getting a good product. She told me imagine if people started seeing fake ipads/iphones, they'd blame it on apple and people would be screaming at them because they didn't have 'quality control'.

Having said that, I still would like to believe that there could be a happy medium... maybe say not let someone pay $50,000 in cash for hundreds of iPads when you know obviously what they're up to.. reselling. But the store lady said that people would give people cash and send them in to buy more and more on a daily basis.. and she said Apple had to stop that.

As far as the cash issue, i think it's been pointed out enough what the law is. It's Apple's choice, I guess...

May 19 2010 at 2:58 PM Report abuse rate up rate down Reply
filipwinter

Why did not somebody with a credit card just purchase it for her in exhange for the cash. I am sure somebody did.

May 19 2010 at 2:35 PM Report abuse rate up rate down Reply
Brocious.dan

I am just saying this because it came to mind. I may be completely wrong on this but he it goes:
The KGO-TV story said she doesnt have a credit card because she doesnt have good credit. What about a bank account? I know that at my bank, if you walk in and have proof of ID and $25 to deposit, you can open a checking account and get a debit card for free WITH NO CREDIT CHECK. I would imaging that alot of banks all over the country are like this so why doesnt she open a checking account and get a debit card. I am also wondering how she pays her bills every month if she doesnt have a checking account. Does she put cash in an envelope and send it to the electric/water/etc company?

Just thought I would express my opinion. Thanks

May 19 2010 at 1:17 PM Report abuse rate up rate down Reply
Marmaduke

"Apple's policy of not accepting cash is a direct slap in the face to hardworking Americans - and to our American way of life."

i thought that use the and abuse of credit cards is part of the American way of life, no pun intended.

May 19 2010 at 12:29 PM Report abuse rate up rate down Reply
Jason

This reminds me of the iTunes Card problem in Canada. You can spend $25 at Best Buy on a prepaid card using cash and then download $25 of music or movies no problem. Try to download an app, however, and you suddenly find that you can't do that and require a credit card due to some obscure tax laws.

May 19 2010 at 12:08 PM Report abuse rate up rate down Reply
Morgan Nelson

This is indeed a dangerous situation. US Currency is Legal Tender and therefore cannot bet refused as the currency of transaction. In the State that I live in, the Apple Store accepts cash for all purchases so that it is in compliance with the retail regulations. Instead, they are using e-mail addresses to identify purchases and limit based on that.

I personally prefer to buy with cash when possible because it is a financial control mechanism for me. Credit Cards, and their unabated proliferation, are partially responsible for our current financial crisis.

As for the 2 - per customer limit. I know this is not a hard and fast rule for Apple. My brother has purchased 6 iPads (all with the same credit card). Some were gifts, but 3 were for him, his wife, and their kids. I have purchased 4 myself. 2 as gifts and 2 for personal use.

All in all - Apple is NOT being a good corporate citizen with this behavior and practice. For a company that claims to want to "bring computing to the masses" they are certainly catering to the elite in this case.

May 19 2010 at 11:55 AM Report abuse rate up rate down Reply
Lin

You are missing the point. Apple instituted the no-cash policy AFTER the demand became so strong they could not keep units in stock. This was specifically to ensure the U.S. end users would get ipads, not resellers.
The intention was to make it easier for U.S. residents to buy them, not harder. But they needed a way to track resellers and that's only possible using credit card data. Otherwise, all the ipads would have been on ebay at $1000 a pop, making money for resellers, instead of making end users in the U.S. happy with their new toys. If Apple was indeed a money-grubbing crap company, they would have sold them to anyone who wanted one; it's all revenue. But they didn't. And they instituted a procedure to reserve them for people who came in-store and found them sold out. It's easy to bash a company but, really, they didn't need to do any of the above, and if they had not, then you all would be screaming about how there were none available to purchase and Apple was money-grubbing and just interested in selling to resellers. Sheesh.

May 19 2010 at 11:27 AM Report abuse rate up rate down Reply
Jon

Picked up a wifi 32g two weeks ago. They let me use two gift cards on the purchase. It should be noted these only added up to $120. Madison,WI

May 19 2010 at 10:56 AM Report abuse rate up rate down Reply
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