Apple Escorts You From The Store For Trying To Purchase An iPhone With Cash
As loyal readers already know, Apple doesn't accept cash for the iPhone -- a policy they say is designed to discourage resellers from getting their grubby little hands on the precious cellphone. This policy does have a tendency to backfire every now and then when a legitimate customer wants to purchase an iPhone with cash. Meet Alex Palen-- he was refused an iPhone because he doesn't have a credit or debit card and was escorted from the store when he asked another customer to accept cash in exchange for charging the phone to their card.
From The Buffalo News:
“She looked at my money and said, ‘We don’t accept cash as a form of payment for the iPhone.’ When I asked why, she would only say it was the store’s policy that I use a credit card,” Palen said.
Since he doesn’t have one, Palen asked another customer if he could give him the $499 plus tax to charge it for him. Store staffers said that was against the rules, and then escorted him — and his pocket full of bills — from the store.
“I was so outraged. I was so humiliated. I just sat in the mall and couldn’t even talk for half an hour. I was so surprised this could happen in America,” Palen said. “I’ve never been told that U. S. currency isn’t enough to buy a product.”
Legally, neither Apple nor any other private company in New York State is required to accept cash.
Apple responded to the news story with the following: "“We require a credit, debit or gift card as payment to discourage unauthorized resellers,” said Teresa Brewer, Apple spokeswoman." We wonder if they couldn't have asked him to buy a gift card rather than resorting to tossing him out of the store? Oddly, Alex says the experience hasn't dampened his enthusiasm for Apple... "I still want to buy the iPhone,” he said. “Unfortunately, it’s the best phone on the market. Nothing else compares.”
What can cash buy? Not an iPhone [Buffalo News](Thanks, Craig!)
(Photo: hanapbuhay )
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Comments:
He should be thankful he just saved $500 on phone that has the same functionality as the one I bought 3 years ago does.
Apple did nothing wrong. He was escorted for trying to get another customer to charge their credit card for his purchase.
Legal Tender EXCEPT in the Apple Store...Do they accept Euros? ;-)
Can anyone explain how that policy would discourage resellers?
I mean, I've got several credit cards. If I wanted to go from store to store, I could use a different card at each.
I also have to ask : Why it's still an issue? I didn't think they were still in 'super short supply to make you want it more'.
@catskyfire: The article says so they can track the purchases and make sure whoever bought the iPhone is the same person using the iPhone.
@Toof_75_75: Stores are under no obligation to accept cash of any form for a purchase. They only have to accept cash if you owe them money.
You know what would serve them right? But an iPhone with a credit card and have the bank do a charge back!
@Edge23: What business is it of Apple's what this customer wants to deal with another customer? If they didn't have that retarded rule it wouldn't have even come to that. Apple is 100% in the wrong on this one.
Someone has been whispering sweet idiocies into your ear Alex. There are many many phones better than the iphone. Don't patronize those trolls after the way they treated you.
The most ridiculous thing about this whole policy is that they wont even accept cash as PART of the payment.
I tried paying for half the phone with a card, and the rest with cash, they still wouldn't do it.
Makes absolutely no sense to me, as the only reason they installed the credit card rule in the first place was so that they could "track" your information.
I understand Apple is not required to take cash, but not taking it is ludicrous. I really wish there was a law that said stores have to accept cash.
Solution- Come to China. If one vendor won't take your form of payment for the iPhone, go to the next one a couple meters away. Plus, it's unlocked and jailbroken too.
Seriously, the whole card-only thing isn't working if they're dime-a-dozen here in China, somewhere they haven't officially sold it yet.
(Personally, I think there are lots of better phones on the market; just not the US market. Look over the Pacific)
...
In my opinion it is the best phone on the market, bar none.
It might not have the most features, but everything that it does it does better than any other phone.
The OS and touchscreen give it by far the best functionality of any phone.
Wow, Apple really puts itself really high on a pedestal. And the fact that this guy still wants an iphone after being "humiliated", just illustrates the fact that people are falling for the hype. I bet Steve Jobs wipes with crisp $100 bills every morning. Haha.
Best phone on the market? Strange, my free phone from Sprint makes calls, calculates tips and has an alarm to wake me up from naps. Also, they are happy to accept good old american cash.
You mean it's the best "toy" on the market?
At this point he'd be stupid to buy the iPhone v.1 in any event, the Apple store arrogantly saved him from buying a soon-to-be obsolete version. In a month or two they should be releasing the 3G iPhone v.2, at which time he can take his cash to an AT&T store and get one.
I'm sorry, does apple not accept American currency anymore? Guess I'll have to buy it in euros.
Buying an iPhone days before a new one is release FTW!!!
@ kaptainkk
The link you provided seems to be slightly outdated, just like your piece of shit Nokia.
We require a credit, debit or gift card...(but we'll only take up to 5 gift cards so all those $50 GCs you've been saving still won't cut it).
I can see why they don't want resellers snapping up all of the available supplies but I'm not sure how it helps to not take cash.
Why do I feel this has less to do with resellers and more to do with associating an ID and a serial number to track unlocked devices? Am I being too cynical?
He should count his blessings! It looks like iPhone 2.0 is just around the corner, and he should wait for that one.
(Also, would they accept a check?)
Well it seems the consumerist hit a nerve with that bit about the iphone.
To be honest it's a decent phone, but it has it's downsides.
No 3G *yet, lack of keyboard, camera quality stinks, 2 year contract on top of 499 fee..
Don't understand the fanboy hate though..
It sucks that he felt humiliated and will have to jump through hoops to get an iPhone (even though Apple probably did him a favor, seeing as how the 3G models are just a few weeks away). However...it's 2008. There's no reason for someone not to have a credit card. They're convenient, good to have for emergencies, and they help you build credit. Whenever I meet someone who actually takes pride in the fact that they don't have one, I just shake my head.
Use it, pay it off every month, don't live beyond your means, and a credit card is insanely useful. People who think they're being fiscally responsible or somehow taking a stand against The Man by not getting one, get little sympathy from me.
@AaronZ: The check question is interesting, but I'm guessing if the guy had a checking account he'd also have a debit card. These days you'd have to specifically ask NOT to get a debit card from any bank I can think of.
Not an Apple fanboy, but I do like the iPhone (got it free from work). It is not the best phone one the market - it is the best internet browsing interface in a phone that I am aware of. With 3G, it will be pretty much perfect as a web device.
I thought that American currency is good for all debts, "public and private" Guess not!
"I still want to buy the iPhone," he said.
And that's why he has to bend over. I'll never have to deal with this problem, because Apple can kiss my ass.
I like the iPhone too, but can't justify spending that sort of money on any phone - it's just not that big a deal to me.
What I really can't understand is ever wanting to business with Apple after being treated that way. I've been a fan of Apple products for a long time and would hate to go a day without my old, outdated yet fully functioning iPod. It's stories like this that will make me think twice before making an Apple purchase in the future.
Well, just wait to the new genration is out and pick up a Green Dot disposable VISA/MC and be done with it.
I wonder if they accept iCash
I thought that American currency is good for all debts, "public and private" Guess not!
If the store won't even begin to do business with you, you have not incurred a debt.
@Saboth: Ah, so true. It's a toy with functions that you really don't need, but are cool. I think the "best" phone on the market is the one with the best reception, and I don't think the iPhone qualifies in that respect.
Now, while he does say it's the best phone in the market, there are also a lot of folks saying there are better ones.
I'd like someone to point me to why some of these phones are better. I'm not even being snarky
who wants to bet they wanted ID with that credit card to? Where oh where are the naysayers that say I should use cash instead of credit?
What IS the best cell phone? I have no idea anymore. I thought the phone I had was pretty good but the damn thing looks like I sent it through a washing machine full of rocks after only a short time.
I want one that won't have bits break off randomly and has a qwerty keyboard. And not an effing blackberry. Can't find one.
I don't think there are any good phones left. I despair.
Okay, what if I want to make the iPhone the standard phone for my company, and wanted to buy 50 of them. Would they sell them to me, even if I used a credit card?
@calvinneal: It wasn't a debt. It was a sale. The tool doesn't own Apple anything yet, so Apple doesn't have to take cash yet.
When I went to purchase the iphone for my fiance a couple of months ago at the Apple store in Holyoke, Ma I was given the option of cash or credit. I chose to use my debit card because I was under the impression that they didn't accept cash. Very strange...
@raleel:
Pretty subjective. I don't think there is single "best phone". People prefer different things, so what is better to you might not be better to me. But, I suppose there are other ways of determining the "best." You could see which one has the most features, or which one has sold the most.
Guilty until proven innocent. If you buy with cash you are a criminal who will resell our phone. Nevermind the implications of becoming a cashless society. We wont let you use our product unless we have the same ability to track and trace your purchases as the government does when you register your vehicle. Fascism anyone?
Keep in mind people, its called an iPhone but works more like a PDA than anything. SMS, web browsing, notes, calander functions, google maps, etc... while available on many other phones, the touch interface make this thing a dream to use.
Apple's take on some features make it unique as well, phone numbers in web pages become links (tap the number to dial), SMS messages scroll like a chat sessions are just a few.
Most retailers don't have to accept cash if they don't want to.
You can buy and iPhone with mostly cash, but some of it must be on a credit card.
@Lucky225
Apple Employees can ask for ID, but a customer may refuse.
(there was an iCommunicate article after the big report about Apple Retail requiring IDs) Apple also says that someone using a stolen credit card is, "a risk we're willing to take."
@Atticka: Many phones have touch interfaces. My WinMo phone will link to a phone number in a web page or message. My wife's Blackberry will do that and also will thread SMS messages.
The iPhone has very little on Blackberry.
If you buy with cash you are a criminal who will resell our phone.
After he buys it it's his phone; selling it doesn't make him a criminal. Businesses are trying, and getting really good at, faux criminalizing perfectly ordinary behavior. It actually all started some time back when they were successful at getting people -- even this site -- to think of themselves as "consumers" instead of "customers".
I agree with the commenters that say it's 2008 and if you don't have a CC, there's something wrong with you.
Yeah, if you misuse it, it can make your life hell with the amount of debt you rack up. However, CCs beat carrying cash around and debit cards have fewer protections against fraud.
I charge everything on CC since it allows me to actually see where my money is going versus spending cash which leaves no record.
This is pretty lol, especially considering that anyone can get a prepaid VISA, load it up with cash, and buy numerous iPhones. If the Apple Store says "sorry, this VISA has already been used to buy 20 iPhones"... then get a different preaid VISA and repeat the process.
Problem solved on the consumer end, problem exacerbated on Apple's end.
IIRC, Apple won't accept a gift card for iPhone purchases either....