Re:Stripe and Apple Pay
by Igglyboo on Tuesday September 09, 2014 @03:46PM
(#8292348)
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).
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Re:Stripe and Apple Pay
by induscreep on Tuesday September 09, 2014 @05:34PM
(#8293337)
Then 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...
Apple charges the banks and credit card issuers a fee every time Apple Pay is used, rather than charging the company receiving the money.
How do you know that Apple receives a fee for the transaction? I'd be curious to see a source.
Re:Stripe and Apple Pay
by induscreep on Wednesday September 10, 2014 @03:04PM
(#8298386)
Yup 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?
The card issuers need to sign off on it for the liability purposes.
Apple 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.
And, 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-de...