Why use Apple Pay at a store that you've shopped at before?

[mgroot]

How does this work? So does this card not work for internet purchases? And if you travel to the U.S. it's worthless? Do you have a second, less-secure card for use in those situations?

The fact that it has a chip on it has no impact on internet purchases, just as the magnetic strip doesn't have any impact then! My card works fine for internet purchases and it still has the magnetic strip for use in lesser developed countries

I've had a chip and pin card for a few years and I was able to use my card in Canada and the US without a problem, you just switch back to swiping it.

 

[Bill Av]

But there are multiple standpoints. Security aside, using Apple Pay will prevent the store from tracking your purchase over time and building a profile of you.

...unless it's a "membership only" store like BJ's/Costco/etc - or you use a loyalty card. Personally, I don't care about that (although I probably should). I just want to keep my CC# out of as many hands as possible.

 

[Zorn]

Apple Pay (or any similar NFC payment service) is really the safest way to pay at least in the U.S. Even when this country moves over to the chipped cards, and most retailers are far behind deadline on implementation, the U.S. is doing "chip & signature". Unlike in Europe, at best the card gets inserted into a reader if the retailer has one, and the customer may then sign. All it really does is make sure the card itself isn't fake. In Europe, they insert the card into the reader, then you input a PIN.

Apple Pay on the other hand simply makes up a one time use CC number. It's only good for the exact amount of your transaction the moment you authorize it. Even if you knew that full number, you could post it on a billboard and it would be worthless after your purchase is made.

 

[Small White Car]

The fact that it has a chip on it has no impact on internet purchases, just as the magnetic strip doesn't have any impact then! My card works fine for internet purchases and it still has the magnetic strip for use in lesser developed countries

I don't get it, then. Someone said it "pretty much eliminates fraud." If I can get your number and type the number into Amazon.com or take your card to the U.S. and walk into any store with it then I don't see how your chip card is any more secure than my magnetic stripe card.

Wouldn't it have to restrict itself to ONLY working on terminals with chip readers to actually make it more secure? What's the point in having a huge steel door on the front of your house if the backdoor is still unlocked?

 

[tmiw]

Apple Pay (or any similar NFC payment service) is really the safest way to pay at least in the U.S. Even when this country moves over to the chipped cards, and most retailers are far behind deadline on implementation, the U.S. is doing "chip & signature". Unlike in Europe, at best the card gets inserted into a reader if the retailer has one, and the customer may then sign. All it really does is make sure the card itself isn't fake. In Europe, they insert the card into the reader, then you input a PIN.

Apple Pay on the other hand simply makes up a one time use CC number. It's only good for the exact amount of your transaction the moment you authorize it. Even if you knew that full number, you could post it on a billboard and it would be worthless after your purchase is made.

The new card number is per-device, not per transaction. Otherwise Apple Pay would require data connectivity to use, which would be crazy.

I don't get it, then. Someone said it "pretty much eliminates fraud." If I can get your number and type the number into Amazon.com or take your card to the U.S. and walk into any store with it then I don't see how your chip card is any more secure than my magnetic stripe card.

Wouldn't it have to restrict itself to ONLY working on terminals with chip readers to actually make it more secure? What's the point in having a huge steel door on the front of your house if the backdoor is still unlocked?

Pretty much eliminates in-person fraud. Not even Apple Pay promised to eliminate Internet fraud.