eMerchantBroker brings you Apple Pay™

Nov. 13, 2014 - PRLog -- At eMerchantBroker we promise to bring you all the latest innovations in the processing industry. This communication will give you all the information you could possibly want or need about the new Apple Pay™.

This payment method is one of the most original and unique methods of payment that can be used for card present as well as in-app and e-Commerce. As you will learn, it is an outstanding process which adds a layer of security for merchants as well as customers.

If you do have questions please do not hesitate to contact us. The information we are giving you has been verified at the time of writing. This information is not a guarantee of any type and should be considered ‘as-is.’ There are no warranties or representations to be misconstrued.

Apple Pay™ overview

Simply put, Apple Pay™ is Apple’s new mobile wallet. With it consumers who have certain iOS devices are able to store their credit or debit card details securely in digital format. Consumers can use it to make purchases in store, in-app or via e-Commerce.  In reality, Apple Pay™ will replace plastic cards having magnetic stripes with digital equivalents. A customer will choose which credit card to load onto their iOS device. So when they make a purchase they are using the credit card their chose, but they will be using their iOS device rather than the plastic card. It can now be left at home.

Will I be changing payment processors?

Absolutely not. This is just a new, more secure way for a consumer to charge to their chosen Visa®, MasterCard®  or American Express® credit or debit card. If you accept Apple Pay™, the same payment processing is in place. As a merchant, the end of month statement does not change. The time required for settlement does not change. In looking at a monthly statement, the merchant will not be able to tell which payments were from Apple Pay™ and which were not. The acceptance is seamless.

Are you totally sure this new process is truly safe?

Yes. The technology is supremely advanced and the sales are not dependent on actual credit card numbers. For in-store applications Apple Pay™ uses NFC capabilities built into the iPhone 6 and 6+ and these capabilities will be included in future releases of iOS devices.

When wants to make an in-store payment at a retailer who has an NFC enabled payment system, they choose the desired payment account in their Apple Pay application. They will hold their finger on the TouchID sensor and either waive or tap the phone he merchant’s NFC reader. The iOS device transmits a payment token that can only be used one time to the merchant’s payment system. Just like any credit card transaction, the merchant’s payment system sends that token to their existing payment processor.

The difference is that when the payment token reaches Visa, MasterCard or American Express, the payment token is converted into a real account number, the transaction is processed and the data is sent to the merchant’s payment processor. This processor transmits the information to the merchant. From a merchant’s viewpoint, nothing is different.  Everything acts identical to a scenario where the customer used a regular card with a magnetic stripe. It is the tokenization process that has made this sale more safe and secure. No customer account number has been swiped at the counter.

How would Apple Pay™ work in e-Commerce?

In order for an e-Commerce merchant or an in-app merchant to be able to accept the new payment form, the merchant must submit a certificate signing request (CSR) to Apple. This CSR is usually produced by the merchant’s credit card processor. The CSR is the vehicle by which Apply will generate a unique and private encryption key for the individual merchant.

Apple uses that CSR to generate a unique private encryption key for the merchant. Then the encryption key is downloaded and stored by the merchant’s payment processor.

This key is used to encrypt cardholder data that is transmitted from Apple Pay’s cloud service, through the cardholder’s iOS device to the merchant’s e-Commerce site or mobile application. Then the merchant’s e-Commerce or mobile application sends the encrypted payment data to the payment processor who in turn decrypts the transaction. From here the transaction takes the path that any other transaction would.

As far as the issue of security, an e-Commerce or in-app merchant would enjoy the same level of security that a card present merchant would have. Because no account numbers have been transmitted via a magnetic stripe, there are no card numbers that can be hacked or stolen. A token can be used one time only and cannot be reproduced. At the point of sale data is encrypted before it is sent to the processor and only the processor can translate the information with the use of the unique merchant key. Also, all cardholders must use Apple’s bio-metric TouchID authentication service built into the newer iOS devices. This method of authentication makes it virtually impossible for a crook to steal an iPhone and then use it to make unauthorized purchases.

Is there anything special a merchant needs to accept Apple Pay™?

In order for a merchant to accept Apple Pay™, the establishment needs to have an NFC capable device. This device will be able to read the Apple Pay™ format and it is certified to be able to communicate with an upstream payment provider. Many merchants may already have these terminals because most of the updated terminals are NEC enabled and need no further modifications.

Will Apple Pay™ accept any Visa, MasterCard or American Express?

Apple has met with large banks and issuers on a one-on-one basis and not all issuers have been contacted and are on board at this time. However, the largest of the issuers have agreed to accept Apple Pay™ including Chase, Citi, Bank of America, Wells Fargo, Capital One and American Express. Apple is very active in generating more support for this unique payment option and we believe all issuers will be on board in the very near future.

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Phone: 1-800-621-4893

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