4 ms·
Apple Pay doesn't actually deal with banks or credit card processors. It's just the frontend for the actual physical payment(card swipe or nfc).
by Igglyboo 12y ago
Apple Pay doesn't actually deal with banks or credit card processors. It's just the frontend for the actual physical payment(card swipe or nfc).
- induscreep 12y agoThen why does Apple Pay have to be "compatible" with visa/MC/Amex? I don't think it just stores a digital version of the credit card...
- jonknee 12y agoThe card issuers need to sign off on it for the liability purposes.
- Letio 12y agoApple needs the networks and/or the banks to tokenize the CC numbers at the time the card is imported into the wallet. When the payment is processed, that same network/bank takes the token provided, translates it back to a card number and passes the card number to the issuing bank. I think it's actually quite a feat that Apple managed to tokenize all 800 million existing card numbers, because of this requirement.
- porsupah 12y agoAnd, apparently, at "card present" transaction rates, which I imagine took some degree of negotiation on Apple's part. http://bankinnovation.net/2014/09/apple-said-to-negotiate-deep-payments-discounts-from-big-banks/ http://bankinnovation.net/2014/09/apple-said-to-negotiate-de...
- zarriak 12y agoApple charges the banks and credit card issuers a fee every time Apple Pay is used, rather than charging the company receiving the money.
- thinkling 12y agoHow do you know that Apple receives a fee for the transaction? I'd be curious to see a source.
- induscreep 12y agoYup exactly. What is the incentive here for the banks to allow Apple to tokenize CC numbers, AND pay Apple for it? Some kind of risk/liability reduction?