• Recent Report Reveals that Banks Will Take on Fraud Liability in Apple Pay Deal



    Chase, Navy Federal Credit Union, PNC and USAA recently commented on Apple’s mobile payments solution, confirming that liability for fraudulent activity will ultimately fall on the banks when it comes to transactions, whether it’s online or physical. The banks did praise Apple’s secure payment process which incorporates Touch ID fingerprint identification, touchless NFC, Secure Element data storage and tokenized transaction processing.

    VP of Credit Cards at Navy Federal, Randy Hopper, had the following to say regarding Apple Pay:

    When Apple got in touch with us and showed us their solution, we were very excited to see what they had been working on and what they had developed, particularly since it was so convenient, secure, and private.
    Hopper continued by stating that he believes Apple Pay will create interest in tokenization, potentially to a point where tokenization may even become a standard banking model. As its most basic level, tokenized transactions replaced credit card data with generated Device Account Numbers, which in Apple Pay is stored in a Secure Element inaccessible by iOS. When the payment is made at a compatible terminal, a token is transmitted and decoded by the banks backend payments system, leaving all aspects of sensitive customer information out of the picture. Furthermore, as a bonus, banks will be able to use unique tokenized transaction identifiers to determine when customers use Apple Pay instead of a physical credit card.

    As far as the risk and the liability go, USAA Assistant VP, Vikram Parekh, stated that the same policies that are used in credit card swipe payments will be carried over to Apple Pay. Both Chase and PNC confirmed full liability protection will be extended to their customers. Parekh also mentioned that both USAA MasterCard and Visa card customers will be able to use Apple Pay starting November 7th which is the first official release date announced by a banking service.

    For those of you who may not already know, Apple Pay is expected to be rolled out by the end of October, a feature likely to be released in an iOS 8.1 maintenance update. We’ll have to wait and see for sure though.

    Source: The Daily Dot
    This article was originally published in forum thread: Recent Report Reveals that Banks Will Take on Fraud Liability in Apple Pay Deal started by Akshay Masand View original post
    Comments 8 Comments
    1. SpiderManAPV's Avatar
      SpiderManAPV -
      Will the info stored in Apple Pay be accessible by other devices if you're jailbroken? Just curious. I guess we won't know until it happens.
    1. NSXrebel's Avatar
      NSXrebel -
      Quote Originally Posted by SpidermanAPV View Post
      Will the info stored in Apple Pay be accessible by other devices if you're jailbroken? Just curious. I guess we won't know until it happens.
      I plan on using Pay, so I won't be jailbreaking my iPhone 6 if/when there's a jailbreak available. The only tweaks I used with iOS 7 was GridLock, Phantom, and one for IG, forget what it's called. I guess you can say I have grown out of jailbreaking.
    1. bry2k2's Avatar
      bry2k2 -
      Yea that sounds like Apple, they must know theres major vulnerabilities in their Apple Pay and when they get exploited they sure as hell aren't gonna pay for their mistakes.
    1. iBwizzle's Avatar
      iBwizzle -
      Thank you Apple for influencing the market to accept and popularizing the mobile payment system. Now other platforms such as BlackBerry, WindowsPhone, and Android will be able to take advantage of this system.
    1. bry2k2's Avatar
      bry2k2 -
      Quote Originally Posted by iBwizzle View Post
      Thank you Apple for influencing the market to accept and popularizing the mobile payment system. Now other platforms such as BlackBerry, WindowsPhone, and Android will be able to take advantage of this system.
      As usual, Android did it well before Apple.
    1. NSXrebel's Avatar
      NSXrebel -
      Quote Originally Posted by bry2k2 View Post
      As usual, Android did it well before Apple.

      Yeah, show me where banks lined up to partner with Google/Android....
    1. JollyRogger's Avatar
      JollyRogger -
      As usual Android did it first but Apple did it properly lol.
      No actual card numbers are given to the retailers system. A token is generated and the shops system then give the token to the bank and Apple pay the retailer without them ever seeing your card details. apple then debit your card.
      Any idiot can store a card number on an RFID chip that any RFID reader can read but it takes a clever company to implement a decent level of security into the process. And to make it even more secure, if I loose my phone then whoever finds / steals it can't use my payment system because it's got a biometric lock ie my fingerprint as an extra level of security.

      Yep Apple win again, they didn't Rush in with a half ased effort, the did it right.

      First is not always best.

      Jolly
    1. mrrippey's Avatar
      mrrippey -
      Quote Originally Posted by bry2k2 View Post
      As usual, Android did it well before Apple.
      Apple may not be the first but it implements the idea so much better than everyone else. Android may be the better OS for techies but my mom would never touch it (because it looks hard). Apple Pay will be exactly the same way, its going to be super easy and all the name brand banks are behind it so guess what will happen, all stores will have a window sticker which will say, Visa, Mastercard, AMEX and Apple Pay
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