Banks Confident in Apple Pay Security, Assume Liability for Fraudulent Purchases

[Victorious Secret]

 

 

Whoever at Apple pulled this off is basically Jesus. Getting the BANKS to own up and take responsibility on this AND getting a cut of the purchases made using the system? 

 

Thats kinda a big win for Apple, but also a big win for such institutions. The less chance of fraud, the less they need to set aside for fraudulent purchases, hence the reason they (the banks) agreed to take the burden of responsibility. They must be very confident in the overall security that they are taking the weight off Apple's shoulders for this. 

 

 

 

Apple's new Apple Pay payment system has been designed to be ultra secure, taking advantage of existing NFC tokenization specifications to keep user payment information safe. Apple uses tokens, or unique Device Account Numbers, to replace card numbers and transactions are verified through both one-time use security codes and Touch ID. 

According to Navy Federal VP of credit cards Randy Hopper, the bank was "very excited" to see what Apple had developed, because it is "convenient, secure, and private." Apple's use of tokenization "addresses all points of weakness across the payment system." 

USAA assistant vice president Vikram Parekh, meanwhile, said that the bank is confident enough in Apple Pay to assume all liability for unauthorized or fraudulent transactions, both in retail stores and for online purchases.

"USAA has a zero liability policy and members are never liable for any losses related to unauthorized [or] fraudulent activity, this does not change with Apple Pay," Vikram Parekh, Assistant Vice President at USAA Bank tells the Daily Dot. 

"The bank has liability for any purchases made when Apple Pay is offered and used as the form of payment. This is true for both face-to-face and for "in-app" purchases," Parekh explains.

 

 

Both Chase and PNC offered similar statements, suggesting banks that have partnered with Apple feel that the payments system is secure enough for them to offer consumers the same protections they get with standard credit cards. 

There is no word of an official release date for Apple Pay, but Chase said its customers will be able to use Apple Pay when it launches, while USAA plans to begin offering Apple Pay on November 7. PNC and Navy Federal will support Apple Pay in the fall.

 

Source: http://www.macrumors.com/2014/10/09/apple-pay-bank-liability/

[Shalashaska]

A very lucrative business move for Apple, kudos.

 

Amazon/Google's merchant and payment services fell to the goliath that is PayPal, I wonder if Apple Pay will grow enough to one day compete with it or even integrate.

[RatedBlam]

That is quite something. Now I can't remember if I'm speaking true but I think we'll have to wait until it arrives on our shores and our banks do the same if we want to benefit.

At least siri now work, although in English.

[Dredgy]

A very lucrative business move for Apple, kudos.

 

Amazon/Google's merchant and payment services fell to the goliath that is PayPal, I wonder if Apple Pay will grow enough to one day compete with it.

 

 

Hmm I kind of see them as different. Ideally I'd like to be able to use Apple Pay to pay with my PayPal account at any card terminal. That would be a huge win for usability.

[MoonSpot]

Whoever at Apple pulled this off is basically Jesus. Getting the BANKS to own up and take responsibility on this AND getting a cut of the purchases made using the system? 

 

 

I guess the skeptical question to ask is how much of a stake do these banks and their management teams have in Apple stock.

Followed very quickly by which of these bankers calling the shots are software engineers who specialize in security?

btw, what happened the last time, and every time before that, where the banks lose money?  bailouts perhaps?  What's it to them to "guarantee" anything?

 

This is not a area I want the private sector calling the shots.

[Trik'Stari]

I guess the skeptical question to ask is how much of a stake do these banks and their management teams have in Apple stock.

Followed very quickly by which of these bankers calling the shots are software engineers who specialize in security?

btw, what happened the last time, and every time before that, where the banks lose money?  bailouts perhaps?  What's it to them the "guarantee" anything?

 

This is not a area I want the private sector calling the shots.

Lol if you think the private sector is incompetent, try working for the government like I have, how we (the US) became "the most powerful nation in the world" I honestly do not fucking know.

 

That being said, I will calmly wait for this to get hacked, and laugh when it does, I'll stick with cash, sure I can get mugged, but I'd rather lose $200 bucks or so, instead of having my identity stolen and have several thousands of dollars charged to my card or loans taken out etc.

[Dietrichw]

Lol if you think the private sector is incompetent, try working for the government like I have, how we (the US) became "the most powerful nation in the world" I honestly do not fucking know.

 

That being said, I will calmly wait for this to get hacked, and laugh when it does.

We dumped money into our armed forces and walk around with a big stick messing with every nations business.

 

everything will get hacked or loopholes will be found one day. All I can say is that it is still a step above the Magnetic strip cards