If you own an iPhone 6, you can use your phone to pay for transactions by just placing it near an NFC (Neard Field Communication) supported credit card terminal.
You don’t have to take your credit card out of your wallet.
The sales clerk, waiter or waitress never gets hold of your credit card. Your iPhone always remains in your hands.
Yes. Not everyone owns a smart phone. However, Apple has sold more than 40 million iPhones in two months. Apple Pay also works with the latest versions of the iPad.
Apple Pay is now accepted in over 200,000 stores including Walgreens, Whole Foods, Panera Bread and other stores that have installed NFC compatible payment terminals. It’s likely that millions of stores will soon accept Apple Pay.
NFC uses a short-range radio-frequency technology that transmits your credit card information.
What makes Apple Pay so good is that it is not transmitting your actual credit card number. It transmits a token credit card number (a one time credit card number) that cannot be reused.
As a merchant, credit card processors are encouraging all merchants to upgrade their credit card terminals by October, 2015. You will be upgrading your terminals to a chip-and-PIN system (also known as Europay). All credit cards will be compatible with chip-and-PIN systems. Since merchants are already upgrading their terminals, merchants should upgrade to terminals that are also NFC-equipped.
NFC and EMV (Europay) will make credit cards more secure and substantially reduce fraud.
Any merchant not upgrading their terminal will be responsible for any and all credit card fraud as a result of fraudulent transactions that could have been avoided by using an upgraded terminal.
You can read the entire Apple Pay article at:
The above article explains the basics. It is actually the link to the October 2014 issue of Chain Store Age. You will need to navigate to Page 25 to read the article.
I also recommend that you go to the Chain Store Age home page which contains lots of articles of interest to retailers of any size along with restaurants.
Upgrading your terminals will cost $300 to $500 per terminal (or more or less depending on your credit card processor, what you are currently using and what you are upgrading to).
Do you have to upgrade? You may be interested in the article below:
Will retailers warm up to Apple Pay? Read the article in The Wall Street Journal at: