Apple Pay Liability

[nightcap965]

I'm trying to understand the incoherent policies of a local supermarket (a member of the Albertson's LLC megacorp) regarding Apple Pay. Like many American merchants, they're tardy about accepting EMV "chip-and sign" cards. The hardware is in place, but they haven't got the software ready yet. This means that, since October 2015, they are liable for credit card fraud perpetrated at their registers.

However, so far as I can tell, they are not liable for Apple Pay transactions. According to the VP of my card issuer's bank: “The bank has liability for any purchases made when Apple Pay is offered and used as the form of payment. This is true for both face-to-face and for “in-app” purchases.”

Has something changed that I'm unaware of? Can merchants possibly be on the hook for Apple Pay fraud?

 

[tmiw]

Last I heard merchants could be held liable for in-app Apple Pay purchases due to them being considered "card not present" (the same as any other online purchase). Perhaps that changed?

 

[nightcap965]

Can you tell me where you heard that, TMIW? This is what the online payments and commerce site has on it: http://www.pymnts.com/news/2014/customers-merchants-face-zero-liability-with-apple-pay/

And Apple Pay is not a "CNP" transaction. According to Apple, it is a card present transaction. See https://support.apple.com/en-us/HT204274

 

[tmiw]

Can you tell me where you heard that, TMIW? This is what the online payments and commerce site has on it: http://www.pymnts.com/news/2014/customers-merchants-face-zero-liability-with-apple-pay/

And Apple Pay is not a "CNP" transaction. According to Apple, it is a card present transaction. See https://support.apple.com/en-us/HT204274

From the Apple link you provided:

Are Apple Pay payments charged as card present or card not present?
Payments made using Apple Pay in stores are card present transactions. Payments made using Apple Pay within apps are card not present transactions.

 

[nightcap965]

Um, we're talking about an in-store experience here. It's a card present transaction. So my question is still, has anything changed to make the store liable for Apple Pay fraud?

 

[tmiw]

Um, we're talking about an in-store experience here. It's a card present transaction. So my question is still, has anything changed to make the store liable for Apple Pay fraud?

No. I'm not sure why that VP is saying there's no liability for in-app purchases though.

 

[nightcap965]

Don't know, but the VP in question works for USAA Federal.