What Is Apple Pay?
Since its launch back in September 2014, Apple Pay has been quickly gaining traction as a mobile payment service among consumers nationwide. Because of its popularity, retailers have been rapidly switching over to contactless point-of-sale terminals, and a majority of retail businesses will be able to accept Apple Pay before the end of 2016.
Along with its sudden rise has come many questions about what Apple Pay is. So this blog post will address some of the most common questions that we have received over this past year.
What is Apple Pay?
Apple Pay is a mobile payment and digital wallet service that allows consumers to pay for purchases without using cash or a physical credit card. Customers add their credit or debit card information to their Apple account and then pay for purchases using their Apple device.
Apple Pay is currently available on the following Apple devices:
- iPhone 6 and all newer models.
- iPad Air2, iPad Pro, and iPad Mini 4
- Apple Watch
Both the iPhone and Apple Watch can be used to make purchases in a retail store, while the iPad can only be used to make purchases within an app.
Apple Pay works with all major credit cards, including Visa, MasterCard, Discover and American Express, as well as many major debit cards. Apple Pay boasts compatibility with banks including Chase, Citi, Bank of America, Capital One, Fifth Third Bank, Key Bank, Sun Trust, TD Bank and Wells Fargo.
How Does Apple Pay Work?
To pay at points of sale, users hold their Apple device to the point of sale terminal. iPhone users authenticate by holding their fingerprint to the phone's Touch ID sensor, whereas Apple Watch users authenticate by double clicking a button on the device. To pay in supported iOS apps, users choose Apple Pay as their payment method and authenticate with Touch ID.
Here is an example of an Apple Pay purchase in a retail store:
Is Apple Pay Secure?
Apple Pay utilizes several security protocols. Every transaction requires authentication from your customer by fingerprint ID or passcode. Some higher cost transactions may also require a signature. Additionally, a customer’s card information is never transmitted during a transaction. Instead, Apple Pay uses a unique device account number and encrypts it for added protection. Device numbers and transaction codes are used in place of account numbers, meaning better security for both you and your customers.
How Much Does Apple Pay Cost?
As of early 2016, there is NO additional fee to accept Apple Pay beyond your current credit card processing rates and fees. Payments made with Apple Pay in a retail setting are considered “card present” transactions and should be priced accordingly by your payment processor.
How Does Apple Pay Make Money?
Apple currently charges the card issuers 15 basis points per transaction.
Does Apple Pay Have Competitors?
As of early 2016, JPMorgan Chase has launched the Chase Pay digital wallet, promising businesses lower costs to accept than other digital wallets. Additionally, Apple Pay faces competition from PayPal, Samsung Pay, Google Wallet, and the eventual digital wallet from Android Pay.
How Can I Accept Apple Pay At My Business?
To accept Apple Pay for purchases at your retail business, you must first be able to accept contactless payments using your point-of-sale terminal. This requires that your point-of-sale terminal has a near field communication (NFC) chip built into it.
Tailored Transactions will provide your business with a free new Verifone Omni VX 520 terminal that is both EMV compliant and able to accept Apple Pay. This is a dual-comm terminal so it can be setup for either dial or IP usage.
If you currently own a contactless payment terminal, we will reprogram it for free so that your business can begin taking advantage of our unbeatable low processing rates and fees.
Businesses who accept Apple Pay can print a logo or order stickers to let customers know that Apple Pay is accepted at your store.
Learn more about Apple Pay and our customized merchant accounts for retail businesses here on our website.
Contact us today for no-obligation Free Rate Quote. We will provide you with a detailed proposal showing exactly how much money your business will save in credit card processing fees each month by using our service. We will complete and return your proposal within 24 hours.
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Visit us online at www.TailoredTransactions.com or call us directly (888) 669.1686