Is NFC flawed?

[clg82]

After reading bunches of threads here about how ApplePay works great some and disasterous for others.....Is the discrepancy the actual NFC terminals or ApplePay itself? I have yet to use mine but I have held it up to an NFC type vending machine and it showed my card but didn't purchase anything....what is everyones thoughts?

 

[metalsaber]

Dunno. I posted in another thread that I was at McDonalds and it all appeared to go through (checkbox/done) but didn't receive the *ding* nor did it actually go through.

Don't know if it was the terminal or something else. Would be nice if Apple had some Troubleshooting FAQ about Apple Pay. I'm hesitant to try it again. Hate standing in line looking like an idiot.

 

[Menel]

After reading bunches of threads here about how ApplePay works great some and disasterous for others.....Is the discrepancy the actual NFC terminals or ApplePay itself? I have yet to use mine but I have held it up to an NFC type vending machine and it showed my card but didn't purchase anything....what is everyones thoughts?

Its the retailers and payment processors, and how the terminals are configured.

 

[clg82]

Its the retailers and payment processors, and how the terminals are configured.

so will time be able to fix the companies that all have their hands in the pot to get this thing to work?

 

[Diode]

There is tons more going on behind the scenes vs. a typical credit card.

For credit cards that are swiped the following happens:

1. Your data is sent to an acquirer/payment processor who routes your data through the payments system for processing.
2. The acquirer/processor sends the data to the payment brand (i.e. Visa, MasterCard, American Express, etc.) who then forwards it to the issuing bank.
3. The issuing bank verifies that the card is legitimate, is not lost or stolen, and that the account has the appropriate amount of funds to cover the purchase.
4. The issuer generates an authorization number and routes that number back to the card brand, agreeing to pay for the purchase on the cardholder’s behalf.
5. The card brand forwards the authorization code back to the acquirer/processor.
6. The acquirer/processor sends the authorization code to the merchant.

For Apple Pay (best guesses as no public info is known):

• Your credit card is first encrypted on your phone in form of a device ID. Only the issuing bank knows how to decrypt this number (not even VISA/MC can)
• The Terminal Communicates to your phone a challenge that is comprised of some sort of transaction info/id number
• After your finger print, your Phone responds with the device ID and an encrypted response to the challenge
• The acquirer/processor sends the data to the payment brand (i.e. Visa, MasterCard, American Express, etc.) who then forwards it to the issuing bank.
• The issuing bank verifies the encrypted challenge and generates an authorization number and routes that number back to the card brand, agreeing to pay for the purchase on the cardholder’s behalf.
• The card brand forwards the authorization code back to the acquirer/processor.
• The acquirer/processor sends the authorization code to the merchant.

 

[clg82]

There is tons more going on behind the scenes vs. a typical credit card.

For credit cards that are swiped the following happens:

1. Your data is sent to an acquirer/payment processor who routes your data through the payments system for processing.
2. The acquirer/processor sends the data to the payment brand (i.e. Visa, MasterCard, American Express, etc.) who then forwards it to the issuing bank.
3. The issuing bank verifies that the card is legitimate, is not lost or stolen, and that the account has the appropriate amount of funds to cover the purchase.
4. The issuer generates an authorization number and routes that number back to the card brand, agreeing to pay for the purchase on the cardholder’s behalf.
5. The card brand forwards the authorization code back to the acquirer/processor.
6. The acquirer/processor sends the authorization code to the merchant.

For Apple Pay (best guesses as no public info is known):

• Your credit card is first encrypted on your phone in form of a device ID. Only the issuing bank knows how to decrypt this number (not even VISA/MC can)
• The Terminal Communicates to your phone a challenge that is comprised of some sort of transaction info/id number
• After your finger print, your Phone responds with the device ID and an encrypted response to the challenge
• The acquirer/processor sends the data to the payment brand (i.e. Visa, MasterCard, American Express, etc.) who then forwards it to the issuing bank.
• The issuing bank verifies the encrypted challenge and generates an authorization number and routes that number back to the card brand, agreeing to pay for the purchase on the cardholder’s behalf.
• The card brand forwards the authorization code back to the acquirer/processor.
• The acquirer/processor sends the authorization code to the merchant.

I wasn't confused as to how the process worked.....just wondering how long until the stores that are turning off their terminals to not work with NFC will catch on and get the details of why it's good for their business to figure it out.

 

[Diode]

I wasn't confused as to how the process worked.....just wondering how long until the stores that are turning off their terminals to not work with NFC will catch on and get the details of why it's good for their business to figure it out.

Then why the thread title? It's not flawed in the sense of it not working if the merchant turns it off.

Some threads seem to be where the issue is in the complexity of the process required to authenticate Apple Pay. That was the issue I was responding to. I should have clarified more.

 

[Solver]

I remember a time when clerks where surprised when you handed them a small thin plastic rectangular thing instead of money. The majority of stores didn't even accept those card things. That was then...

 

[cynics]

I remember a time when clerks where surprised when you handed them a small thin plastic rectangular thing instead of money. The majority of stores didn't even accept those card things. That was then...

I'm going to assume you live out in the sticks? No one was surprised to see plastic cards in the 50's because celluloid and other materials were being used before plastic since the early 1900's. How old are you exactly? Lol