Richard Crone
SAN CARLOS, Calif.—Are some Apple Pay transactions running afoul of the debit interchange rules?
An issue with Apple Pay to be aware of, noted Richard Crone, principal of Crone Consulting, LLC, is that by using Apple Pay merchants currently cannot least-cost-route debit, a requirement under the Durbin rules.
Crone explained that every Apple Pay purchase must reference the Visa and MasterCard tokenization service mid-transaction to complete the sale. Only Visa and MasterCard rails currently have that capability, he explained, which limits merchants from routing Apple transactions over any other networks
“This is temporary, because the proprietary PIN-based networks are working to be able to provide this reference point mid-transaction,” said Crone. “It’s also not that great of concern now because presently there is not a lot of transaction volume with Apple Pay.”
Read more from this Apple Pay series