A research analyst with Keefe, Bruyette & Woods, Sanjay Sakhrani, has published what he claims are the terms financial institutions must agree to in order to join Apple Pay. Apple is said to be receiving 15 basis points per credit card transaction (which translates to 15 cents for every $100 spent), and half a penny per debit transaction. Banks must allow 95 percent of their cards to be used with Apple Pay, not necessarily including gift or ATM-only cards.
Twice a year, Apple has a right to request checks that the amounts paid by card issuers is accurate, which can be done by independent auditors. On top of this, issuers are
reportedly obligated to supply Apple with statistics in almost three dozen categories, such as the volume of transactions and purchases, and the top 100 merchants by purchase volume and average ticket. None of the requested statistics involve personal cardholder information.
Visa and MasterCard are said to be playing a "large operational role" that reaches past the security aspect of Apple Pay's token-based transaction system. Using tokens ensures that neither a device nor a merchant stores a person's card information. What else Visa and MasterCard are handling, though, is unmentioned.
Earlier today, it was reported that a
second wave of banks has begun supporting Apple Pay. Among the new parties are USAA, Navy Federal Credit Union, US Bank, and PNC Bank.
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