Contactless Apple Pay
Online shopping in apps with iPhone is also as simple as the touch of a finger. Users can pay for physical goods and services including apparel, electronics, health and beauty products, tickets and more with Touch ID. Checkout can happen with a single touch, so there’s no need to manually fill out lengthy account forms or repeatedly type in shipping and billing information, and card details are kept private and are not shared with the online merchant.
Contactless payment cards are debit, credit, charge or pre-paid cards which can be used to make quick, easy and secure payments for everyday purchases of $20 and under. There’s no need for a PIN or a signature, just touch your card on a contactless card reader.
Most contactless payments are made with cards. However, mobile phone payments, key fobs, stickers and other methods of contactless payment are becoming more common, research indicates that consumers are likely to spend more money due to the ease of small transactions.
As with all payment devices, contactless cards have a number of security features. Contactless runs over the same chip and PIN network as normal credit and debit card transactions, there is a payment limit on single transactions and some contactless cards can only be used a certain number of times before customers are asked for their PIN. Contactless debit and credit transactions are protected by the same fraud guarantee as standard transactions.
Apple Pay will change the way you pay. When you add a credit or debit card with Apple Pay, the actual card numbers are not stored on the device nor on Apple servers. Instead, a unique Device Account Number is assigned, encrypted and securely stored in the Secure Element on your iPhone or Apple Watch. Each transaction is authorized with a one-time unique number using your Device Account Number and instead of using the security code from the back of your card, Apple Pay creates a dynamic security code to securely validate each transaction.
“Security and privacy is at the core of Apple Pay. When you’re using Apple Pay in a store, restaurant or other merchant, cashiers will no longer see your name, credit card number or security code, helping to reduce the potential for fraud,” said Eddy Cue, Apple’s senior vice president of Internet Software and Services. “Apple doesn’t collect your purchase history, so we don’t know what you bought, where you bought it or how much you paid for it. And if your iPhone is lost or stolen, you can use Find My iPhone to quickly suspend payments from that device.”