Apple Pay gets the lower rate just because they decided it does, there's no real technical reason. The technical answer was just re-iterating that with the full

Apple Pay gets the lower rate just because they decided it does, there's no real technical reason. The technical answer was just re-iterating that with the full technical terms. If you think about it, until chip-and-pin is required in the US, there's not really more security for card-present transactions in the US. Anything they read from the card when they swipe and use to validate the transaction could be intercepted, saved, and written to another card. So it's all arbitrary. Sometimes they ask for your zip code, so they get a better rate. Sometimes (often) they ask for the csc online, so they get a better rate. I guess the statistics work out, but from a technical security point of view, it all seems not really secure.