Risks of Using Apple Pay

As we inch into a wireless, cashless and more advanced society, we wonder how much easier or safer it truly is. Apple, a company that can do it all, pushes their latest trend, Apple Pay — a system allowing you to swipe your iPhone or Apple Watch to pay for things.

The concept is simple: You link your cards to your phone or watch and wave your device in front of the special scanner at select retailers, and voila, you’re done. The system is convenient and lightweight, as many are able to ditch their burdensome wallet. Apple Pay is also available to use in apps, but not websites.

Apple Pay is built with integrated security in both hardware and software, maintaining privacy. The system does not collect transaction information, as payment transactions are between the customer and bank. If you use Apple Pay in stores and have Location Services turned on, the location, date and time may be sent anonymously to Apple to help improve the accuracy of business names in your history. Apple has built extensive safeguards into iOS, watchOS and Apple Pay.

To ensure high-end security, a passcode must be set on your device, either a four- or six-digit passcode, or Touch ID. If you don’t have an iPhone 6, 6 Plus, iPad Air 2, iPad mini 3 or Apple Watch, you’ll have to stick with the traditional route of payment, as the system only works with Near Field Communication (NFC) and the device-unique secure element built-in chip. NFC technology is designed to work only across short distances. The customer must authorize the payment information using Touch ID or a passcode, and on the watch, you must double-click the side button when the device is unlocked to activate payment.

After you authenticate the payment at the register, the Secure Element provides your device account number and transaction security code, sending it along to the store’s computer to complete the transaction. The bank can verify your payment by checking the dynamic code to make sure it’s unique and tied to your device.

If you lose your device, you can suspend Apple Pay by placing your device in Lost Mode using Find My iPhone. You also have the option to permanently remove the ability to use Apple Pay by erasing the device remotely using Find My iPhone — the cards linked to your account will be suspended or removed by your bank.