Dupaco Community Credit Union is among the first wave of financial institutions to integrate its credit card with Apple Pay, the newest mobile-payment technology. The payment option is available on Apple iPhone 6 and 6 Plus.
Todd Link, vice president of remote services at Dupaco, has answers to some questions about Apple Pay:
How does my iPhone 6 allow me to make payments?
- The phone is equipped with Near-Field Communication. This allows phone users to communicate with payment terminals that display the contactless communication icon.
- In addition, Apple Pay uses biometric identification to improve payment security.
- Apple Pay, in combination with the card brands, also offers tokenization. These one-time tokens are created for every transaction so sensitive card data is not provided to merchants or stored on the phone. When a transaction occurs, the token number is sent to the payment processor and securely matched to the card number.
Should I trust this technology?
Card breaches are often the result of malicious malware infecting a retailer’s computer system. With tokenization, merchants no longer store card information, reducing the likelihood of widespread card compromises.
I’ve heard that Apple Pay transactions are limited to a fairly small dollar amount?
Card issuers have limited purchases to $25 and $50, depending on the card brand. But it is anticipated that as popularity of this product grows, the limits might be increased.
Won’t this add time to my checkout?
In testing, Apple has been able to demonstrate electronic payment via smart phone is faster and more efficient than a traditional card swipe.
How much does it cost me to use Apple Pay?
Dupaco has fees internally associated with offering Apple Pay. But at this time, there is no plan to pass along these fees to our members.
How many businesses are equipped to accept Apple Pay via NFC?
More than 220,000 stores accept contactless NFC payments. That number continues to grow as the popularity of Apple Pay and other NFC products takes hold. See the complete list and learn more at Apple Pay.