Apple Pay is one of the most convenient and secure payment methods available today, allowing you to check out with just a tap of your iPhone or Apple Watch. But does CVS, the largest pharmacy chain in the U.S., accept it? Here‘s everything you need to know about using Apple Pay at CVS, from setting it up to getting cash back, straight from a retail and payments industry expert.
Does CVS Take Apple Pay?
Yes, CVS accepts Apple Pay at all of its nearly 10,000 standalone locations in the U.S. Just look for the contactless payment symbol on the card reader at checkout and you can pay with your iPhone or Apple Watch. However, there are a few limitations to be aware of:
- Apple Pay cannot be used on CVS.com for online purchases
- The CVS Pharmacy app does not accept Apple Pay
- You cannot get cash back with Apple Pay at CVS (more on this later)
Despite these limitations, Apple Pay is still a fast, easy, and secure way to pay at CVS stores. I use it all the time to quickly check out without fumbling for my wallet.
How Widely Accepted is Apple Pay?
Since launching in 2014, Apple Pay has seen tremendous growth in acceptance from retailers. As of 2022, Apple Pay is accepted at over 85% of retailers in the U.S., according to the most recent Pulse Debit Issuer Study. This includes major chains like:
- Best Buy
- Costco
- CVS
- Kohl‘s
- Macy‘s
- McDonald‘s
- Panera Bread
- Petco
- Starbucks
- Subway
- Target
- Trader Joe‘s
- Walgreens
- Whole Foods
A notable holdout is Walmart, which has long resisted Apple Pay in favor of its own mobile wallet. But overall, you can use Apple Pay at the vast majority of places you likely shop.
Worldwide, Apple Pay is now accepted in over 70 countries and regions, including Canada, Mexico, most of Europe, Singapore, Japan, China, Australia, and New Zealand. So you can easily use it while traveling abroad too.
Consumer Adoption of Contactless Payments
The pandemic has dramatically accelerated the shift toward contactless payments as consumers and retailers prioritize touch-free interactions. Globally, 64% of consumers used a mobile wallet in 2022, up from 46% in 2019, according to Capgemini. And usage will likely continue climbing.
Source: World Payments Report 2022
Contactless payments like Apple Pay are not only more hygienic, but they‘re also faster and more convenient than swiping or inserting a card. In the U.S., contactless transactions take just 12.5 seconds on average compared to 26.7 seconds for a traditional credit card payment, per A.T. Kearney. For busy shoppers, those extra seconds add up.
The Technology Behind Apple Pay
So how does Apple Pay actually work? When you add a credit or debit card to the Apple Wallet app, the card issuer creates a device-specific token called a Device Account Number (DAN). This encrypted 16-digit token is stored in the secure element chip on your iPhone or Apple Watch. Your actual card number is never shared with the merchant.
Source: Tom‘s Guide
When you go to pay with Apple Pay, that DAN is transmitted to the payment terminal along with a one-time security code. The DAN and security code are verified by the card network and your card issuer. You then authenticate the transaction on your device with Face ID, Touch ID, or your passcode. This multi-layer security makes Apple Pay transactions far less susceptible to fraud compared to swiping a physical card.
Apple Pay also uses near-field communication (NFC) technology to transmit payment data to a card reader. NFC allows two devices in close proximity to communicate wirelessly. This is why you have to hold your iPhone or Apple Watch within a few centimeters of the payment terminal to initiate an Apple Pay transaction.
Benefits for Retailers That Accept Apple Pay
Accepting Apple Pay offers some notable advantages for retailers like CVS:
Increased Security
As explained above, Apple Pay tokenizes card numbers and requires biometric authentication, greatly reducing the risk of fraud. This not only protects customers but also saves retailers money on chargebacks and fraud-related expenses.
Faster Checkout
Contactless transactions like Apple Pay are significantly faster than chip card insertions. This cuts down on long lines and allows retailers to serve more customers. Visa found that enabling contactless payments decreased transaction time by 53% compared to chip cards.
Higher Customer Satisfaction
Faster checkouts and touch-free payments make for a more seamless experience that boosts customer satisfaction. In Visa‘s survey, 65% of consumers said they have a more positive attitude toward retailers that allow contactless payments.
Competitive Edge
As mobile wallet adoption grows, retailers that don‘t accept contactless payments risk falling behind. Nearly 3 in 4 customers say they‘re more likely to shop at a store if it offers their preferred payment method, per 451 Research. Accepting Apple Pay helps retailers stay competitive and meet changing consumer expectations.
Apple Pay vs. Other Mobile Wallets
Apple Pay is the most widely used mobile wallet in the U.S., with 43.9 million users in 2021, according to eMarketer. However, it does have some notable competitors:
| Mobile Wallet | U.S. Users (2021) | Acceptance |
|---|---|---|
| Apple Pay | 43.9 million | 85% of retailers |
| Starbucks App | 31.2 million | Only at Starbucks stores |
| Google Pay | 25.0 million | 85% of retailers |
| Samsung Pay | 16.3 million | 85% of retailers |
Sources: eMarketer, PULSE Study
Google Pay and Samsung Pay use the same NFC technology as Apple Pay, so they‘re accepted at most of the same retailers. Notably, Samsung Pay also supports magnetic secure transmission (MST) which allows it to work with older card readers by emulating a magnetic stripe card. However, Samsung is phasing out MST support on newer devices.
The Starbucks app is the second most popular mobile payment app thanks to its tight integration with the Starbucks Rewards program. However, it can only be used at Starbucks stores, while Apple Pay works at millions of locations worldwide.
Apple Pay Transaction Fees
Retailers often wonder if they pay higher fees for Apple Pay transactions compared to normal credit card payments. The short answer is no.
Apple Pay transactions are treated the same as traditional credit and debit card purchases. Retailers pay the standard credit card interchange fees set by the card networks like Visa and Mastercard. This is generally around 1.5% – 3.5% per transaction.
Apple does not charge any additional fees to retailers for accepting Apple Pay. However, the company does take a tiny cut of each transaction (reported to be 0.15%) from the card issuers.
The Future of Apple Pay
Apple continues to make improvements to Apple Pay to make it even more useful for shoppers and merchants alike. In 2022, the company announced a new Tap to Pay on iPhone feature. This will allow merchants to use an iPhone as a contactless payment terminal without any additional hardware.
Source: Apple
While details are still slim, this could make it much easier and more affordable for small businesses and independent retailers to start accepting Apple Pay. It could also allow larger chains to line-bust and take payments from anywhere in the store without being tied to a register. Tap to Pay on iPhone is slated to launch in the U.S. later in 2022.
Getting Cash Back with Apple Pay at CVS
As mentioned earlier, CVS does not offer cash back on purchases made with Apple Pay. The pharmacy chain only provides cash back of up to $35 on debit card transactions.
However, there is one exception. If you have the Discover Cashback Debit card linked to your Apple Pay, you‘ll still earn 1% cash back on purchases, even if you pay with Apple Pay. This is a nice workaround to earn some rewards on Apple Pay transactions at CVS.
Just keep in mind that this only works with the Discover debit card specifically. Other cashback debit and credit cards will not earn rewards when linked to Apple Pay.
Tips for Using Apple Pay at CVS
To make your next Apple Pay transaction at CVS as smooth as possible, here are a few expert tips:
- Double-check that you have a credit or debit card linked to Apple Pay before you get to the register. You can always add a new card right in the Wallet app.
- When the cashier tells you the total, let them know you‘re paying with your phone or watch. At self-checkout, tap "Pay" to begin.
- Hold your iPhone near the top of the payment terminal until it beeps and lights up. For Apple Watch, double-press the side button and hold the display near the reader.
- Authenticate the transaction with Face ID, Touch ID, or your passcode. You should see "Done" and a checkmark on the screen.
- Always keep a traditional credit card or some cash on hand as a backup in case the NFC reader isn‘t working or your device battery dies.
- To see a list of your recent Apple Pay transactions, just open the Wallet app and tap a card. You can also view Apple Pay purchases in the latest transactions section of your bank or credit card statement.
Conclusion
Apple Pay has quickly become one of the most popular and convenient ways to pay at millions of retailers worldwide, CVS included. Despite a few limitations, you can easily use Apple Pay at the pharmacy chain‘s nearly 10,000 stores to check out faster, avoid touching germy payment terminals, and keep your card numbers secure.
The phenomenal growth of Apple Pay and other contactless payment methods in recent years signals that consumers are eager for more touch-free, convenient ways to pay. And retailers are responding by expanding their accepted payment methods to stay competitive. The days of fumbling with cash and coins may be numbered.
As digital wallets and mobile payments continue to evolve, it will be interesting to see how Apple Pay and CVS‘s own mobile payment solutions co-exist. The addition of Tap to Pay on iPhone could be a game changer for how both consumers and merchants complete transactions.
But for now, the next time you need to make a purchase at CVS, give Apple Pay a try. I think you‘ll be impressed by just how quick and easy it is. Pretty soon you may even forget your wallet at home on purpose. Just don‘t forget your phone!
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