Apple to Require Identity Verification for Sending $500+ in Apple Cash Starting in October

[MacRumors]

Apple today began sending out emails to customers letting them know about upcoming changes that are being made to the Apple Cash Terms and Conditions.

iOS 18 and watchOS 11 introduce Tap to Cash, a feature that allows users to exchange Apple Cash in person by holding an iPhone or Apple Watch near another iPhone or Apple Watch. As part of this feature implementation, Apple is changing the identity verification rules surrounding Apple Cash.

Starting on October 4, Apple will require that iPhone and Apple Watch users verify their identity to send more than a total of $500 in peer-to-peer transfers, which includes sending Apple Cash via Messages and making Tap to Cash payments. Identity verification is required whether sending money from an Apple Cash balance or from a supported card in the Wallet app. Prior transactions will count toward the limit that will trigger identity verification.

Apple already requires identity verification for Apple Cash for those who use the feature frequently. Apple's support document says that users cannot add or receive $500 or more in total without identity verification, so it sounds like verification will also be required when sending large amounts of money as of October.

Identify verification for Apple Cash involves taking photos of a driver's license or ID card, as well as answering personal history questions and providing information like home address, date of birth, and social security number.

Identity verification for sending payments makes sense as Tap to Cash will allow money to be exchanged without being accompanied by personal information like phone number. Tap to Cash is designed for private in-person transactions where Apple Cash is exchanged.

Apple's email to customers also says that it is adding the Vision Pro as a supported device for Apple Cash and that weekly peer-to-peer transfer limits will apply to transfers that are sent as well as received. Apple allows users to send or receive a maximum of $10,000 within a 7-day period.

Article Link: Apple to Require Identity Verification for Sending $500+ in Apple Cash Starting in October

 

[turbineseaplane]

This seems smart

I have no issues with this and certainly feel more comfortable doing identity verification with a company like Apple vs many random alternatives

 

[centauratlas]

Probably KYC related being required by governments.

 

[coffeemilktea]

users cannot add or receive $500 or more in total without identity verification

as well as answering personal history questions and providing information like home address, date of birth, and social security number.

I wonder if this will eventually get used for tax purposes? 🤔

I remember people on Twitter kicking up a fuss since you could potentially be taxed if you receive more than $600 on PayPal (it used to require at least $20,000 before the IRS got involved). I imagine the government wants its "fair share" of your Apple Cash transactions too. 😝

 

[jmh600cbr]

how about bringing this to canada?

 

[jz0309]

Identity verification seems reasonable

 

[jwdsail]

Well, that's one way to kill a feature.

Not many people will hand out that much personal info just to use this.

Likely for tax purposes, yes, but with all the data leaks and how much data is already out there, people are getting less and less likely to provide this much data to any one company, even Apple.

 

[CharlesShaw]

I wonder if this will eventually get used for tax purposes? 🤔

I remember people on Twitter kicking up a fuss since you could potentially be taxed if you receive more than $600 on PayPal (it used to require at least $20,000 before the IRS got involved). I imagine the government wants its "fair share" of your Apple Cash transactions too. 😝

Hehe, I remember Carmela Soprano depositing an amount of cash just below the threshold.

 

[Apple_Robert]

I think this is a good move by Apple.

 

[Fender2112]

Hehe, I remember Carmela Soprano depositing an amount of cash just below the threshold.

Walter White didn't bother. He just opened a car wash.

 

[countermind]

Yay, more reasons for crypto!

 

[smithrh]

KYC = Know Your Customer. Federal money reporting requirements.

This isn't Apple requiring this so much as the Feds, like FinCEN.

The Carmela Soprano example above is a great example of "structuring" which will land you in a world of hurt.

 

[DrewDaHilp1]

Most likely strictly for tax purposes.

 

[bigboy29]

I don't get this and I do not think it is a good idea (maybe because I don't get it).

I can send cash to people via Zelle etc. with no identity verification. More than $500.

Why does Apple feel like they need to be an arbiter of transactions here? People will just use something else if sending Apple cash is a PITA.

Now - if this is to address possible abuse, then arguably, they should make the feature / sending have higher friction to start... but if I am already authed to my phone, and FaceID is required for sending cash, sending a photo of a DL or providing SSN? What?!!? No. I'll just use Venmo / Zelle, thanks.

 

[sdf]

Likely for tax purposes, yes, but with all the data leaks and how much data is already out there, people are getting less and less likely to provide this much data to any one company, even Apple.

Likely a legal requirement for Apple to do this as an anti-laundering measure. As for whether people use it, the only untracked alternative in the log run is probably going to be cash.

 

[WarmWinterHat]

Yay, more reasons for crypto!

There is never a reason for crypto.

If you care that much, use cash..

 

[DVDxR]

You already did

I can send cash to people via Zelle etc. with no identity verification. More than $500.

No you can't, you just don't realize it because your identity in Zelle is tied to your bank account, who already did the identity verification.

As for why, most likely it's to comply with US Know Your Customer (KYC) requirements and they have no say in it.

 

[dmccombs]

I'll have to see this in action. It sounds like they have made this convenient feature (tap to cash), more involved then just sending someone a paypal payment, or Zelle, etc.

I hope I am wrong, but if I have to take a picture of my license, and answer questions questions to complete a transaction, it sounds like using another payment method will be faster/easier.

 

[bigboy29]

You already did

No you can't, you just don't realize it because your identity in Zelle is tied to your bank account, who already did the identity verification.

As for why, most likely it's to comply with US Know Your Customer (KYC) requirements and they have no say in it.

Sure but - are you saying that the situation here is different? I am sending from Apple account (Apple cash) or my checking account, when I send money via Message, right? So... where is KYC chain broken here? I am already KYC'd to my checking account; Apple is just an intermediary here, the money goes from a bank account to a bank account. Even in the case of Apple cash, this is still a bank account (it used to be on Discover network but might be different now).

So - again - explain to me here how "KYC" comes into play here, because I am already KYC'd (let's make it a verb LOL) to accounts that I link to my phone, no?

 

[rbgaynor]

I'll have to see this in action. It sounds like they have made this convenient feature (tap to cash), more involved then just sending someone a paypal payment, or Zelle, etc.

I hope I am wrong, but if I have to take a picture of my license, and answer questions questions to complete a transaction, it sounds like using another payment method will be faster/easier.

Doesn't sound like this is a per transaction requirement, just a get verified once to have access to the higher limits.

 

[harmonthe3rd]

I don't get this and I do not think it is a good idea (maybe because I don't get it).

I can send cash to people via Zelle etc. with no identity verification. More than $500.

Why does Apple feel like they need to be an arbiter of transactions here? People will just use something else if sending Apple cash is a PITA.

Now - if this is to address possible abuse, then arguably, they should make the feature / sending have higher friction to start... but if I am already authed to my phone, and FaceID is required for sending cash, sending a photo of a DL or providing SSN? What?!!? No. I'll just use Venmo / Zelle, thanks.

Zelle is ran and funding by banks. Your account with the bank already identified you. Venmo requires you to process identification also, when you reach certain threshold based on the state you live in. People won't use something else, look at the use cases for all peer-to-peer payments solutions. Tax liability and fraud detection are the mostly reasons that Apple in pushing of this with everyone now. Do remember that Apple uses green dot for its Apple Cash Services, they have legal obligations also.

 

[BuffaloTF]

Sure but - are you saying that the situation here is different? I am sending from Apple account (Apple cash) or my checking account, when I send money via Message, right? So... where is KYC chain broken here? I am already KYC'd to my checking account; Apple is just an intermediary here, the money goes from a bank account to a bank account. Even in the case of Apple cash, this is still a bank account (it used to be on Discover network but might be different now).

So - again - explain to me here how "KYC" comes into play here, because I am already KYC'd (let's make it a verb LOL) to accounts that I link to my phone, no?

I think you answered your own question. It’s now Green Dot Bank and the Visa network, but it all remains the same. It’s still a bank account. It’s still a card. Funding it from a different bank account doesn’t make you a known person to where it is held by Green Dot, and thus Green Dot can provide no supporting information to Visa as the next transaction occurs in the chain. So, no different than opening a new bank account at Chase that you’re putting an initial deposit in from your account at BAML. Chase needs to KYC you.

Now… separately entirely and to the general audience. I use Apple Cash to fund my kids allowances. How in the world am I going to get an ID verification for them after this threshold? Their passports?

 

[DVDxR]

Sure but - are you saying that the situation here is different? I am sending from Apple account (Apple cash) or my checking account, when I send money via Message, right? So... where is KYC chain broken here? I am already KYC'd to my checking account; Apple is just an intermediary here, the money goes from a bank account to a bank account. Even in the case of Apple cash, this is still a bank account (it used to be on Discover network but might be different now).

So - again - explain to me here how "KYC" comes into play here, because I am already KYC'd (let's make it a verb LOL) to accounts that I link to my phone, no?

KYC is broken because Apple doesn't know who you are to the required degree (checking ID, etc). I can use my apple cash card without tying it to anything but my Apple ID. I didn't need to provide photo ID when I opened my Apple ID account.

You can tie your Apple Cash to a bank account but that doesn't ID you since you are initiating the connection FROM Apple TO the account. Zelle is different since it's owned by the banks and you initiate creating your account from your bank.

 

[GrayFlannel]

I don't get this and I do not think it is a good idea (maybe because I don't get it).

I can send cash to people via Zelle etc. with no identity verification. More than $500.

Why does Apple feel like they need to be an arbiter of transactions here? People will just use something else if sending Apple cash is a PITA.

Now - if this is to address possible abuse, then arguably, they should make the feature / sending have higher friction to start... but if I am already authed to my phone, and FaceID is required for sending cash, sending a photo of a DL or providing SSN? What?!!? No. I'll just use Venmo / Zelle, thanks.

Transferring banks and institutions arbitrarily decide their limits.
Deposits, withdrawals, and transfers of $10k or more are automatically reported to the IRS.

 

[bradman83]

Now… separately entirely and to the general audience. I use Apple Cash to fund my kids allowances. How in the world am I going to get an ID verification for them after this threshold? Their passports?

Apple Cash is only available to minors when it's set up as part of a Family Sharing plan and established by an identified adult. Based on the language in Apple and Green Dot Bank's terms of service the accounts for minors are most likely custodial accounts as there are references to requiring identification once the child turns 18 and the account "graduates" to an individual account.

So in short you would not need to provide photo ID for your children until they turn 18.