Saturday - Aug 17, 2019

Update on Discover Apple Pay Promotion – It is Not Looking Good

We have discussed extensively about the Discover Apple Pay Promotion.  On 09/18/2015, Discover specifically added the language “Excludes Gift card purchases“, however we were not sure if it would/could be enforced.

Today, we received an email from Discover regarding an Apple Pay transaction that was done prior to 09/18/2015 and another email for the transaction that was done after 09/18/2015

Here is the email for the transaction done prior to 09/18/2015.



Here is the email for the transaction done after 09/18/2015:




What does it mean?

Discover is honoring the 10% cashback promotion for gift card purchases made before 09/18/2015 using Apple Pay. For any large purchases done on or after 09/18, Discover is challenging them.

Most likely, Discover is flagging purchases of higher amounts and claiming that the purchase includes gift cards and asking for documentation, to prove otherwise. It means that, Discover has no insight in to the items purchased.

It would be interesting to find, how smaller amount gift card purchases will be treated.


What is the best strategy now?

If you are comfortable, you could purchase products like i-pad, i-phone from Apple store with Discover card using Apple pay and resell them.

You could do the same thing by purchasing and reselling items from Staples.



Discover is sending emails to members stating that the Gift card purchases are not eligible. If their assessment is incorrect, members can send the documentation.

Discover does not have any information about the purchase, otherwise they would not have asked us for receipts.


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Editorial Note: Opinions, analysis and any calculations shown are authors alone. Information in this post is not reviewed, approved and endorsed by any airlines, frequent flyer programs or financial institution

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