Apple reverses its no-cash payment policy for iPads; gives woman free iPad (with video)

HOT Apple Computers + FREE Shipping“Apple stepped up to the plate Wednesday, responding to a 7 On Your Side report about a woman who tried to buy an iPad using her carefully saved up money, only to be told she could not pay with cash,” Michael Finney reports for KGO-TV out of San Francisco (ABC 7 News). “The story caused outcry all across the country and Wednesday Apple not only changed its policy, it provided a happy ending to the story.”

MacDailyNews Take: There’s nothing oh-so inspiring as manufactured outrage; especially when locally televised.

Finney continues, “Remember Diane Campbell? She saved up her money to buy an iPad only to be turned away. The Apple Store said she could not use cash, only a debit or credit card. She said a clerk told her it was to prevent iPads from reaching the black market. Campbell then contacted 7 On Your Side. When we asked Apple what was up, we were pointed to the no-cash policy. There was no explanation. ‘We want to make sure it’s as fair as possible for people to get iPads,’ said Apple Sr. Vice President Ron Johnson.”

MacDailyNews Take: Newsflash! Apple’s no-cash policy is nothing new. It was in effect at least as far back as 2007 with the launch of the original iPhone. We’ve gone through the
“this is the policy, is it legal?, yes it’s legal” routine already – three years ago (please see related articles below).

“Now all of that has changed. ‘About a month ago, we said we’d like you to use a credit card when you buy your iPad, and that was the best way we could think of to make sure that people only bought two per individual,’ said Johnson. ‘And then it came to our attention that Diane [Campbell], through your story, was very interested in buying an iPad with cash, and we made a decision today to change that,'” Finney reports. “Johnson said our story triggered a company-wide policy change.”

“As of today, anyone can pay for an iPad with cash as long as they set up their Apple account at the store. Apple accounts are needed for the iPad anyway, so that is not putting anyone out,” Finney reports. “‘We heard about this, you know… we all would love people like Diane [Campbell] to get an iPad, so I called her up and she was very excited and we’re actually on our way to deliver an iPad to her house,’ said Johnson. That’s right. The folks at Apple wanted to thank Campbell for bringing this issue to their attention, so two employees from Apple visited her home Wednesday and brought her a brand new iPad for free.”

MacDailyNews Note: Disney-owned (ironically, Steve Jobs is Disney’s largest individual shareholder) KGO-TV shortsightedly provides only Flash video. Complain here: )

Direct link to video via KGO-TV here.

Finney reports, “Johnson tells 7 On Your Side that grey market sales were never the issue, as many assumed. He says the policy was instituted to make sure the tablets were fairly distributed during a time of high demand.”

Full article here.

MacDailyNews Take: Bottom line: Good PR and yet another win for Apple. We’ll leave it at that; foregoing comments about general stupidity, the state of local TV news, the insidious pervasiveness of the victim mentality, hyperbole, central casting, proportion, extortion, etc.

MacDailyNews Note: Apple’s U.S. Retail Store Purchase Policies that were in effect at the time Campbell attempted to buy her iPad with cash explicitly stated: “Apple Gift Cards are not redeemable for cash (except as required by law); cannot be applied as payment to any account; and cannot be used to purchase additional Apple Gift Cards, mobile phone contracts, iPads or service plans; and cannot be used for purchases for shipment outside the United States or for any other products or services as determined by Apple and Issuer in their sole discretion… In addition to all Purchase Policies stated above, the following additional policies apply to iPad sales: iPad purchases are limited to 2 per customer and must be purchased with a Credit Card or Debit Card only.”

54 Comments

  1. @G4Dualie, “I can see the headlines tomorrow Diane Campbell for president.

    Sara Palin will volunteer to push her out on the stage.

    No pushing is what the ‘Big 0’ (Yes, that’s a zero), would do. Sarah would carry her out.

  2. Apple is full of shit on this one. Cash not ok? FSCKING BS.
    That is amazing in times when people are trying to ween off of the credit debt cycle and live within their means. Yes, you can buy an iPad and live within your means. Using cash proves that. If I got turned down trying to use cash, I’d raise a freaking stink to high hell in that store. Knock this crap off Steve. Seriously.

  3. @ Tired of Retards

    You really must be tired of yourself. How can you agree with a policy that is instituted to ensure the fair distribution of iPads when that very same policy prohibits people who do not have debit/credit cards fair access to them. To me that is retarded. My parents are in their 70’s and have NEVER had a credit card in their entire life! (My Dad will actually be turning 80 this year.) So based on what makes perfect sense to you, my mother and father are not entitled to purchase an iPad because they ONLY use cash? Really? Retarded!

  4. If you wanted to buy an iPad with cash, you should of just bought an Apple Gift Card with the cash and then buy the iPad with the Gift Card. That is how we suggested people get around that rule when I worked at an Apple Store and the iPhones were Credit Card only.

  5. Dear Cash Only Lady,

    So, you don’t have any credit or debit cards. Good for you. I’m really not here to judge.

    But you find you can’t buy an iPad right now without one?

    No problem, head on over to Walmart with your cash. Buy one of them thar Visa cash cards they sell. You know, they’re like debit cards without a bank account. You PRE-PAY them! Get it for the amount of the iPad plus any local taxes. Get it for the exact amount. Now, take that thar cash card back to the Apple store and by the fucking iPad.

    This is not rocket science, people!

    Yours Truly,
    Someone Who Doesn’t Live in a Cave

  6. Dear Apple Store Manager,

    So, you have a customer that doesn’t have any credit or debit cards. Good for them. You’re really not there to judge.

    But you can’t sell them an iPad right now without one?

    No problem, send them on over to Walmart with your cash. Have them buy one of them thar Visa cash cards they sell. You know, they’re like debit cards without a bank account. They PRE-PAY them! Have them get it for the amount of the iPad plus any local taxes. Have them get it for the exact amount. Now, have them bring that thar cash card back to the your store and sell them the fucking iPad.

    This is not rocket science, people!

    Yours Truly,
    Someone Who Doesn’t Live in a Cave

  7. Kudos to Apple for recognizing the unintended consequences of the policy and not only changing the policy, but spinning it into a great PR story. Giving the lady a free iPad is incredibly smart and only cost Apple the cost of an iPad and an hour or so of employee time.

    Brilliant. Most companies would probably just refuse to change their policy or insist she go buy a prepaid debit card.

  8. @ Me In LA,

    And how would using a debit card be any less “living within your means” than paying cash? It wouldn’t, because it’s exactly like using a check or even withdrawing cash from your account.

    All that said, it’s nice to see that Apple can apply their brains to the problem instead of just saying, “That’s the policy.”

  9. There’s nothing oh-so inspiring as manufactured outrage […] Bottom line: Good PR and yet another win for Apple. We’ll leave it at that; foregoing comments about general stupidity, the state of local TV news, the insidious pervasiveness of the victim mentality, hyperbole, central casting, proportion, extortion, etc.

    Coming from MDN, this is rich. Not two weeks ago MDN went off on a tear about supposed limits to freedom of speech being suggested by the President, manufacturing outrage so great (and from both sides) that they pulled their original take. They’ve also sicced rabid Apple fans on writers who wrote a mostly pro-Apple article, but messed up one or two minor details. In other words, pot, meet kettle.

    On topic, I’m glad Apple reversed their policy. Carrying $500+ in US cash isn’t to be done lightly, but I understand the older generation sticking with what they know, especially since they don’t have the security awareness the younger generation has and are easily defrauded.

  10. The video plays just fine on my iPhone. If you go to the direct video link, it will play from there.

    On topic, how is this woman going to be able to update her iPad with no computer? I think I remember from the original story this would be her first Internet device.

  11. Oh, I get it. Apple is now going to tell people how to run their financial life? It’s a moot point that you can use a debit card. If I want to use cash to buy something, it’s BS that Apple or anyone else can sit there smug and say sorry. What absolute crap.
    Is not being able to use cash in America now whining? There’s some interesting folks here that’s for sure.

  12. Good for Apple, PR-wise.

    FWIW, Just because some of us disagree with a company’s stated policies does not mean we do not understand them. Any reasons given for no cash policies are rationals to cover the explanation that they exist solely for the benefit of the retailer.

    The naivety of some people these days is extraordinary.

    A no cash policy by any retailer is, IMO, inherently anti-consumer. The existence of other payment options does not negate this.

    Regardless, the U.S. Treasury Dept could eliminate this economic absurdity by declaring that U.S. currency is legal tender for all “transactions”… not just “debts.”

  13. @schmluss and @ecrabb

    Some also forget that having a bank account is a privilege and not a right… For all we know she could have a terrible banking history and may only be able to pay in cash.

    Bottom line: Apple should take cash.

    They are worried about black market sales. So what! I could buy one today if I wanted to and sell it on eBay.

    They should just be selling as many as they can.

  14. “the U.S. Treasury Dept could eliminate this economic absurdity by declaring that U.S. currency is legal tender for all “transactions”… not just “debts.”

    Uh, no, they can’t.

  15. What insanity. I always thought that Ron Johnson was smarter than this. First rule of retail … when the customer is ready to buy, take their money. Don’t impose silly restrictions and make it convenient to do business with you.

  16. Hey YouInLa STFU!

    You can’t use cash at Amazon or any other online store. When are you going to call for a change in Amazon’s policy?

    You aren’t because that’s just the way it is and nothing you do is going to change it.

    Deal with it.

  17. I realize, MDN, it was challenging for you to not write what you subtly messaged anyway (wink-nod, your own hyperbole). Many previous articles have, since Tuesday, made me think that Rand Paul is a writer or editor for you.
    Thank you for practicing restraint. I enjoy (most of the time) reading what is written on this site and would not want to be given a reason from your end for no longer coming here.

  18. Campbell goes directly to a TV station instead of finding alternate ways to purchase the product? Like purchasing a one time debit card – I assume they’re available in California. Glad she didn’t play “The Card” though I imagine some felt it could be dealt.

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