How is that possible? I touch my home button and the transaction goes through. I've never seen an option to choose credit or debit.
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Apple Pay Now Accepted by 1000 U.S. Issuers
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Isn't it the Secure Element in the iPhone that provides the Token? And Apple is taking .15% of a transaction, it's not like Visa,Mastercard,Discover and AMEX aren't getting a healthy cut for their work.
They aren't.
Between two and four percent of the sale price goes to one of the four networks.
If you use a rewards card, you get one to three percent of that back, if not more.
Then the issuing bank takes a cut.
You then have to pay out for fraud in case of a data breach (the banks just don't lose the money).
And then you have to pay for employees, operations, etc.
Apple has numerous other products it sells for a 30% margin.
Visa and MasterCard are only rich because they have billions of people using their cards every day, not because they make a good chunk on the transaction. That lies more within Discover and American Express's business model, but they also charge a little bit more per transactions, while AMEX offers cards with annual fees and have cards where the filthy rich spend more money than we know what to do with on them.
I believe you always have to be live to an iCloud connection to use Apple Pay, which could render it useless outside of your "home" area i.e. out of range or out-of-the-country.
You believe wrong.
Even the Watch is fully autonomous from the net and iPhone wrt Pay.
If you're looking specifically at the transaction when using Apple Pay, then yes, Apple is barely involved other than the fee they charge. But that doesn't mean Apple Pay as a technology costs nothing.
I'd wager to guess Samsung doesn't charge fees because they are the underdog in direct competition with Apple. Apple can strong-arm their partners, but if Samsung came in with a much smaller user base then they need to bring something to the table to entice the banks to support them.
Oh Red Orchestra... You are a factual mess today...
The use of the camera to enter card information is purely optional for convenience. Even if your bank whispered the relevant info to you, you would still be able to activate aaplp by entering this info manually.
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Forget about being upset, just tell the store they lost a loyal customer. Eventually, like Barclays in GB, they will relent and sign on to Pay.
Yeah, maybe, but still wondering which financial institution will provide a CC number without issuing a physical card ... know of any?
Agreed. Not today, and probably not tomorrow. Even if ApplePay (and EveryOtherPay) was available for 80% of transactions, there'd be that other 20%. With the card companies collecting 2%-3% (and sometimes more) on those transactions, the cost of producing physical cards will continue to be a justifiable business expense. The basic rule is, "No impediments to a transaction."
However, with the physical cards getting progressively less use/wear-and-tear, then the companies will end up issuing fewer replacement cards - a few dollars saved here, a few there, and it begins to add up.
The real competition to credit cards is cash. What the industry really wants, in the push to "frictionless" payment methods, is to increase the overall percentage of credit/debit transactions.
Apple's 0.15% cut can be justified solely by reductions in fraud. The savings will probably exceed that by a fair margin. The point of technologies like Touch ID is "positive identification." We'll be seeing it for drivers licenses before too long - it's going to be a lot harder to present a fake ID at a liquor store or marijuana dispensary.
What I can't figure out, at least here in the US, is why it takes longer to process a chip card transaction than either a magnetic stripe or ApplePay. On the terminals I've used, it's not a tap, it's "Slide the card into a separate slot, and leave it there."
I think in the future your information could come in a secure envelope, similar to a PIN number does now.
It would have your PIN number in the envelope, along with the last four digits of your card number and your entire account number, and a security code. One would then be required to sign for the envelope it comes in upon retrieval.
You then would have to call in, provide your D.O.B, Social Security number, pin number, last four of your account number, your mother's maiden name, and then the security code to activate the card on the phone.
That's the only secure way I can see that happening.
We're Tap-and-Go here in Canada, so really not in a rush for Apple Pay.
That's a normal chip transaction. Tap and pay is for smaller payments in other countries, such as at Dunkin Donuts.
It'll be years before full adoption of schemes like Apple Pay, hell, in Germany, cash still reigns supreme.
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My card is good for up to $150 per purchase on Tap-and-Go
I'm talking about in countries where payment cards actually are a norm.
My comments were purely speculation, as to increase the security of someone else not being able to activate your card on their phone by intercepting your mail.
Agreed, for speed of transaction. As I mentioned previously, the real benefit to Apple Pay and similar technologies is identity verification/fraud prevention. Tap-and-Go does nothing to confirm identity. If the savings are sufficient, we'll start seeing the card companies rewarding customers for using identity-secured payment methods (until usage becomes so widespread that the card issuers no longer have to offer incentives).
Hmmmm.....
I'm not sure. I've only seen it FAIL at a local gas station (Kangaroo), when I was offered the choice & chose "debit".
It happened on two distinct occasions & every other time I've chose "credit" & had no issue.
Thought I'd share that.
The trick is to not tell them that you're paying with "ApplePay" but "Credit" (or debit if that's what you have on your ApplePay). If I say "American Express" it prompts me to swipe or insert the card and doesn't work. If I say "Credit", I'm prompted to tap, swipe or insert the card. I tap my Watch and it works. If the vendor accepts NFC tapping, it'll almost always work, regardless if they're an official ApplePay partner or not.
They have no service fees, all my ATM fees are reversed, and when I set up my account they gave me 3% intrest on my checking account as long as I make 10 purchases a month. Also, The newest employee has been there for over two years.
I emailed my bank awhile back about this and they were "looking into it". Nothing yet. So frustrating. I can use Apple Pay at many of the places I shop but I can't even get on the service.
Very good. Only about 4,000 left to go.
This. Like all the other phone makers in the past with NFC, Apple has made back their R&D money by selling the device.
Now, of course it would be fair for Apple to charge banks a fee for registering a card, or merchants a fee for in-app Apple Pay transactions, because in those cases their servers are involved.
However, they do nothing during a contactless transaction to earn a fee except having originally sold the hardware to someone.
Exactly. Apple wanting a percentage of our contactless purchases made with an iPhone, makes no more sense than if a contactless credit card manufacturer demanded part of our purchases every time we used a card they made.
Yep, it's the same as with a contactless card (which is what NFC payments such as Apple Pay or Android Pay emulate).
The Java applets installed in a contactless card or a phone's Secure Element are what does all the purchase authorization interchange with the POS terminal, and they belong to the specific credit card network involved. Apple is not involved in the tokenization except during registration, and even then they're just a pass-through.
On the contrary, Apple's 0.15% is far more than what related fraud costs.
In the US, in-person credit card fraud costs banks around 0.05%, or just 1/3 of what Apple wants. In the UK, contactless fraud is 0.007%, or 1/20 of what Apple wants.
So, especially in countries that already have EMV cards and low fraud rates, there's little or no incentive from the fraud standpoint to pay Apple.
The main reason banks pay Apple is because they want access to Apple's users. (With Apple Pay, we ARE the product Apple is selling.) US banks were kept in the dark at first, and nobody wanted to not be the primary card being used. The UK fell to popular pressure. Other countries held back to see what happened.
As it turned out, Apple Pay purchases haven't taken off as expected. Now banks realize that Apple needs them more than they need Apple. Already one year is gone of their initial three year contracts. It'll be interesting to see what will happen in a couple of years.
Agreed, this drives us all crazy. Our local CVS even turned off the chip part during Christmas because it was slowing everyone down.
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I just found this on Apple's website:
So far I can't remember being given the choice at the stores where I've used Apple Pay. Apple should allow you to make that the default method for debit cards.
I also ran across this interesting article that seems more like a promotion for Bitcoin:
https://www.cryptocoinsnews.com/apple-pay-fraud-rates-increase-6000-normal-debit-swipes/
