What is Apple Pay? +
In short, Apple Pay is Apple’s mobile wallet. It allows consumers with certain iOS devices to store their credit or debit card details securely in digital format and then use the device to make in-store and in-app purchases. Simply put, Apple Pay is designed to replace plastic cards with digital equivalents. When a consumer uses Apple Pay to make a purchase, they will still be paying with their credit or debit card of choice, but instead of using a plastic card, they can complete that purchase using their iOS device.
Is Apple Pay secure? +
Apple Pay is a highly secure way of accepting in-store credit and debit card payments because it takes advantage of tokenization technology developed by Visa®, MasterCard® and American Express® combined with Apple's own biometric authentication known as Touch Id. That means the real account number is never transmitted and if someone steals an iPhone, the thief will still have trouble getting past the Touch ID requirement.
How much does it cost a merchant to accept Apple Pay payments? +
There are no additional processing fees to accept payments made through Apple Pay. The merchant will pay the same processing fees to their merchant account provider as they would if the merchant swiped or manually entered a Visa, MasterCard or American Express payment.
What interchange levels will Apple Pay payments qualify for? +
Apple Pay in-store payments will be treated as card present while in-app purchases will be treated as card not present.
How does Apple Pay work in a retail environment? +
For in-store transactions, Apple Pay uses NFC capabilities built into the iPhone 6, 6 Plus, Apple Watch and future Apple products . When the consumer is ready to complete an in-store payment at a retailer who has an NFC enabled payment system, the consumer simply selects the desired payment account in their Passbook application, holds their finger on the TouchID sensor and waives or taps the phone against the merchant’s NFC reader. As far as the merchant is concerned, the rest happens just like a normal credit or debit card transaction. Apple Pay transactions run at merchants that support contactless EMV will qualify as EMV transactions.
Is Payment Logistics setup to support Apple Pay and how do I get started? +
Payment Logistics has provided full support for Apple Pay since it launched in October 2014. Apple Pay payments are processed by Payment Logistics just like any other Visa, MasterCard, American Express or Discover card payment. Payment Logistics clients can support Apple Pay immediately as long as they have an NFC capable payment terminal. Since the EMV liability shift has already passed, we advise merchants requiring new payment devices to select one that is both EMV and NFC capable.