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Adrian Kingsley-Hughes

UPDATED - Apple: We don't want your stinkin' cash!

By | May 18, 2010, 10:00am PDT

Summary: Want to buy an iPad and pay cash for it? Apple’s store drones will tell you to hit the road because your cash isn’t welcome.

[UPDATE: Apple has reversed its "no cash" policy.]

Want to buy an iPad and pay cash for it? Apple’s store drones will tell you to hit the road because your cash isn’t welcome.

It’s an odd story that’s been picked up by ZDNet’s own David Gewirtz:

According to KGO, a disabled woman named Diane Campbell saved up for months, simply wanting to buy an iPad so she could go online.

Once Ms. Campbell had finally saved up enough, she took her savings to the Palo Alto Apple store, with all her money in her backpack. She brought the iPad up to the counter and presented her money — and was turned away.

Now, I’m pretty sure that the reason behind this refusal to sell Ms. Campbell an iPad is that Apple wants to limit sales to two per customer so that its latest creation doesn’t end up on eBay en-masse, and the company is using credit/debit card information to control this. But if this is the case (and if it’s not, I invite Apple to correct this), then this really is a very pathetic reason.

For years I’ve stated that Apple is a cult-like company, highly secretive, full of weird rules, and complete with brainwashed fanatic followers. The tendrils of control-freakery extend to every corner of the company. I’ve grown to expect this of Apple, both as a customer, a consumer advocate and a journalist. This however, goes too far. Denying someone a product simply based on them not choosing to use a credit or debit card and turning up at the store with cash only makes sense in the context of the company picking and choosing what demographic it wants to sell to (or to be seen with its products perhaps?) simply on the basis of what payment method they use.

Power corrupts … you know the rest …

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Adrian Kingsley-Hughes is an internationally published technology author who has devoted over a decade to helping users get the most from technology.

Disclosure

Adrian Kingsley-Hughes

All opinions expressed on Hardware 2.0 are those of Adrian Kingsley-Hughes. Every effort is made to ensure that the information posted is accurate. If you have any comments, queries or corrections, please contact Adrian via the email link here. Any possible conflicts of interest will be posted below. [Updated: February 23, 2010] - Adrian Kingsley-Hughes has no business relationships, affiliations, investments, or other actual/potential conflicts of interest relating to the content posted so far on this blog.

Biography

Adrian Kingsley-Hughes

Adrian Kingsley-Hughes is an internationally published technology author who has devoted over a decade to helping users get the most from technology -- whether that be by learning to program, building a PC from a pile of parts, or helping them get the most from their new MP3 player or digital camera.

Adrian has authored/co-authored technical books on a variety of topics, ranging from programming to building and maintaining PCs. His most recent books include "Build the Ultimate Custom PC", "Beginning Programming" and "The PC Doctor's Fix It Yourself Guide". He has also written training manuals that have been used by a number of Fortune 500 companies.

Adrian also runs a popular blog under the name The PC Doctor, where he covers a range of computer-related topics -- from security to repairing and upgrading.

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RE: Apple: We don't want your stinkin' cash!
ottertowne 26th May 2010
Try to buy a house with cash...

And did the author actually just restate another article on the same site? Good work! Last minute, eh?
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Quote from a dollar bill
bretthodel@... 18th May 2010
"This note is legal tender for all debts, public and private". I would venture to say that it is illegal to deny payment by cash.
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Was just going to reply with the *exact* same thing!
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Exactly
Spats30 18th May 2010
Cash is the only guaranteed legal tender in the U.S. If you sell something, you have to accept U.S. legal tender.
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@bretthodel@... You'd think so, but I have a a CLERK OF COURT refuse cash (for a parking ticket). The judge was not amused and dismissed the case when this was brought to his attention.
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Nope
oncall 18th May 2010
@bretthodel@...

Try this link:
http://www.federalreserve.gov/generalinfo/faq/faqcur.htm#2

"However, no federal law mandates that a person or an organization must accept currency or coins as payment for goods or services not yet provided. For example, a bus line may prohibit payment of fares in pennies or dollar bills."
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RE: Apple: We don't want your stinkin' cash!
bretthodel@... 18th May 2010
@oncall
Thank you for posting that link. I did not realize that exception existed.
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@oncall - Why spoil the tirade?
dave95. 18th May 2010
And there are bus lines that still refuse bills. There are toll boots like the NJ Turnpike that do not want your pennies either.
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@oncall - Yes, that exception exists but the source you cite also says that the restriction must be clearly posted publicly.

"...as a matter of policy may refuse to accept currency of a large denomination, such as notes above $20, and as long as notice is posted and a transaction giving rise to a debt has not already been completed..."

That's "and," not "or."

Recalling the possible exceptions listed by the Fed, posting of a sign indicating that policy has been the case everywhere I have encountered any refusal to accept legal tender in the US.

If the Apple Store did not have a sign posted, then they may be in violation of the statute and also if they accept cash for some products but not this particular product.
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@oncall "and as long as notice is posted" I have never seen that in the 10 Apple store I've been in and I have seen them accept cash before on a iPhone
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@bretthodel@... That exactly what I was going to say!
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@bretthodel@...

and you'd be wrong. Try to pay your rent with cash if you live in an apartment complex (they don't want a small fortune reliably sitting in their office on the first of the month), or buy $10,000 worth of watches from a jewelry store in the mall using cash.
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********
Cylon Centurion 18th May 2010
Cash is legal tender. I hope she sues. I'm tired of Steve Jobs telling me what I can and cannot do.
@NStalnecker
Read the link provided by @bretthodel@... Companies can do as they wish. Do a search you will find more of the same.

When I traveled for business there were instances at the hotel or motel I would want to pay cash in advance for my weekly stay. Many would refuse my cash, only taking a credit card.

Now, go pay your utility bill, your property tax, with small change see what happens. They do not have to accept the change.

So, being as you are so tired you need to lie down.
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They except checks. Apple doesn't
John Zern 18th May 2010
from what I've seen at the store near us, so only those worthy of a credit card are allowed to purchase an iPad.
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Reply to John Zern...
BubbaJones_ 18th May 2010
@RicD_
Hi John, I just now called my local Apple store, metro Atlanta. They said only for the iPad it is credit card required however, any other Apple product can be purchased with cash, check, or credit card.

Interesting huh.
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@NStalnecker
Are you so very vulnerable that you "imagine" Steve Jobs is ordering you about? How fragile are you!?! Do you even own an Apple product? I'm guessing based on your past posts including this one the answer is no. I have owned a number of Apple products over the years and currently own an iMac and iPhone. I am an intelligent consumer and I research the product I am purchasing before I buy. If the terms are not to my liking I won't purchase it's that simple. That said I've not had a problem with Apple's terms. I actually like the control Apple has over it's product in fact I seek it out for I know that when I go to use my Apple product the odds that it will work as I expect and want it to is very high. I'm not looking for a computer project I'm looking for an appliance that just works as it should.

Pagan jim
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2007
MoeFugger 18th May 2010
In 2007 they would not take cash for those Iphones.
Their products are great but their pickyness for who writes the software and who makes the add on hardware is too annoying for me to use their products.
I understand why they do it but I do not like it.
As far as legal tender, Google it.
They do not have to take cash unless the state tells them too.
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RE: Apple: We don't want your stinkin' cash!
dave95. Updated - 18th May 2010
@MoeFugger

And they continue to sell more iPhones today with the same policy, and their iPhone brand has become even stronger. Why?

With every company using and abusing Android today with its 'open' approach, the brand will start to become watered-down. The bigger companies like HTC and Moto will continue to skin Android just to differentiate themselves from the other cheap generic Android clone phones in the market. And who could blaim them, everyone is trying to use Android today with it being free. The problem is and just like we've seen with WinMo, the fact their phones run Android will take a back seat to the skinning and what the phone does differently than the other generic phones. Which means In the near future it will be HTC or Moto and their brand that competes with the iPhone, not Android like it is perceived now. Android the brand will become something like a WinMo unless Google take back control. It is all over the place right now, not recognizable as being one type of phone. I presume it will get worst. But Google's attempt to take back some control with their Nexus One phone (the showcase Google phone) did not quite pan out as they've planed.

Long winded but my point is: Apple may get all sorts of gripe for their controlling ways and policies today but if you take a look at their long term iPhone (iPad) goal, not just the short term, it's easy to see their reasoning. Easy to see who the majority of the high end smart phone sales going to when compared with companies individual (not collectively as Android phones like it is now). Easy to see who will continue to have the strongest consumer brand recognition in the future.
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Bestbuy accepts cash and sells the dopey Apple products.
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How can anyone make comments
Stan57 18th May 2010
How can anyone make comments good or bad without the full storie?
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Get over yourselves.
matthew_maurice 18th May 2010
This has nothing to do with Apple "picking and choosing what demographic it wants to sell to[sic]". This is about Apple trying to stop iPad "scalping", and since they've got control of the vast majority of retail outlets-they will. Diane will get her iPad, some PR/marketing wonk will fix it, or she'll just go to Best Buy and use cash there.

Look at this from the opposite angle, how would you feel if the guy in line in front of you at the Apple Store bought the last 4 iPads in stock using cash while you stand there with a credit card in your hand? If it was me, I'd be stoked that Apple is making sure supply is maximized. This is just a bad example of a rare negative implication of an otherwise positive policy.
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This is unbelievable.
Apple is un-American because they don't accept cash at their stores???!
Perhaps because I'm a Canadian I just don't understand... This somehow threatens the American way of life?? Can I have some concrete facts as to why that is?
Sure, not being able to use cash might be slightly inconvenient, but geez!

First, my feeling is cash is on its way out as a payment mechanism. How many often do not carry cash now, but use your debit or credit cards exclusively? Yeah, thought so.
Second, the iPad won't work very well without an iTunes account hooked up to a credit card. So, the old lady won't be able to do a lot without a credit card, right?
Third, what the hell is an old lady walking around with $500 cash anyway. There's no way that she couldn't get a bank account somewhere and use a debit card.
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@rossdav@..

For me cash has become an inconveniance, I hardly carry it anymore. plus it's much easier to track what I spend using my debit or credit.
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RE: Apple: We don't want your stinkin' cash!
techie73 Updated - 18th May 2010
I paid cash for mine. oh shoot i might get sued now!!!!
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Penny Jar...
NetCaptive 18th May 2010
Maybe her backpack was full of pennies and the clerks did not feel like spending hours counting it out.
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Even if this is Apple's policy and for the possible reasons stated in the article, exceptions need to be made. The manager of the store on duty should have overridden the ostensible policy, as should anyone in a similar situation.

Though I use Apple products and am invested in AAPL, this kind of behavior is unacceptable and certainly not good for either customers or company PR.
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The airlines do the same thing so that they do not have to handle cash. The US Treasury explains why this is legal. See here: http://www.ustreas.gov/education/faq/currency/legal-tender.shtml
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Steve Jobs has done nothing truly worthwhile with the genius with which he has been blessed. One would think someone with his creative, forward-thinking mind could do more for the planet than give us still yet another reason to sit on our butts in mindless pursuit of entertainment and pleasure. Whether you like Bill Gates or not, at least he is trying to do something positive for the planet. Most people that face death and survive gain a renewed sense of what is truly important in life. Steve Jobs, with his tiny little gadgets, has again demonstrated how small-minded he truly is.
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@ianalyzrisq@...

You're assuming that Steve Jobs is not contributing part of his billions in cash to humane pursuits based only on the fact that, if he is doing so, this is not publicized.

Many public figures, including Yankees owner George Steinbrenner, take great pains to keep such contributions private. Given Jobs' often described "paranoia" with personal and professional secrecy, it would not be a stretch to imagine that he would also maintain privacy when it comes to helping others.
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I stand corrected!
risktaker53 18th May 2010
@SkateNY ...your're right...I should not assume! He probably does give millions of dollars to charity...and hopefully not just to reduce his taxes...but I wasn't particularly referring to his money. It sometimes just seems like Steve Jobs and Apple could do more with their considerable talents than make it easier for us to organize our photos, books, and music collections into the smallest possible space. We should all do more to make the world a better place. As the saying goes: "To those who have been given much...much is expected."
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Apple is the only PC company not running Windows on it's computers, and for this it gets the image of disdain and sarcasm (cult-like, weird rules, secretive). What you forgot to mention is that it's a very successful company amidst a market of notable competitors in Nokia, Motorola, Microsoft and Google.

The only weird thing about the article is Ms. Campbell herself - I mean who carries there money in a backpack (was this change in a piggy bank) and who doesn't have a credit card?
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Maybe it was for the best...
Roque Mocan 18th May 2010
Maybe she would be better served by a netbook. I read somewhere that you need a computer with iTunes to unlock the iPad initially - so it is not a self contained entity at first. She might not have this other computer handy. And having no credit card, she would be locked out of applications, iTunes songs and videos.
Apple's rules are perfectly legal with the law and, of course, the company has the right to choose the way how it wants to compensated for their own goods.
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RE: Apple: We don't want your stinkin' cash!
Louis Ross Focke 18th May 2010
This act of Apple is stretching on being illegal is you think about it. Isn't cash supposed to be good for ALL debts, public and private? I think that they would lose a court case if someone takes them to court over this.
They don't care is someone sells them on e-bay, craigslist or anywhere else, get real! They want to know who is buying their product and to be able to track their activity using ipads MAC address and then associate it to the owner. They want information.
My not so humble opinion. Don't buy Apple. They want your soul. Not my fault if you turn into a zombie.
lrfocke
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Don't forget this....
James Quinn 18th May 2010
She had to walk 10 miles up hill in a blizzard BOTH WAYS!!!

No you are NOT limited to credit cards you can use the much more sane debit card method which is very much like cash you can not put yourself into debt using such a card for you can't spend more than you have like a credit card.

This is legal on Apple's part and has been in place for several years now.

Pagan jim
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Non News
mrcap 18th May 2010
This was all hashed out over the iPhone when the same policy was put in affect when the iPhone was all over Ebay. Not a perfect policy but better than having no iPads in the local market because they are getting swooped up for sales outside of the U.S. Again Same policy was used before with the iPhone and the challenges had zero effect on anything. Apple is fully within their right to sell on their terms. The policy will ease up when ample supply is available for the local (U.S.) market. Good job on trying to pull on the heartstrings of your readers. But simply very old news!
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RE: Apple: We don't want your stinkin' cash!
ryanstrassburg 19th May 2010
Or maybe Apple just wants to feed their Braeburn Capitals bank in Nevada? Curious, makes no sense to not take cash.

For sake of argument cash is legal tender for debt, purchasing a product is not a debt, it is a purchase.

Who knows really what the deal is, many ways around this supposed control over iPads and just shows me how iTarded Apple can be.

Apple, the communist computing revolution.
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@ryanstrassburg

Why stop there. Don't forget zombie socialists, capitalism killers, anti-American, friends of the antichrist, old lady haters, and all that superfluous jazz.

It's pretty simple. If you don't like the policies of the company, then stand up for Amerika and refuse to buy the products of the company. If you want to buy the products of the company, then agree to the policies of the company and get used to it. But there's always China for cash sales of super-cheap Apple stuff.
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I went to best buy today to buy a program to download
drivers off the internet to upgrade my pc.They didnt have
one.You can buy programs all over the internet;If you have
a credit card.I feel as though Im being discriminated all the time.
Bob
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They gave her one
MoeFugger 20th May 2010
They broke down and gave her one for free and say that they will accept cash.
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Try to buy a house with cash...

And did the author actually just restate another article on the same site? Good work! Last minute, eh?

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