At a typical glittering launch event on Monday in Cupertino, Apple debuted with the Apple Card, a new credit card offered in partnership with Goldman Sachs and Mastercard. Apple claims that it eliminates many consumer frustrations with current credit cards: the card can be easily registered, there are no fees, and it will be easy to redeem rewards. The company also strongly states that the Apple Card "transforms the entire credit card experience by … creating a new level of privacy and security."
However, you do not have to wait for the Apple Card to hit the market this summer to experience the advertised security features. All you have to do is Apple Pay and the credit card you already own.
"Nothing is changing with the Apple Card," says Avivah Litan, vice president of research at Gartner's analysis and consulting firm. "It's actually pretty awesome, you've already built the entire Apple Pay infrastructure around the world and you've found tremendous acceptance, so it's a competitive step."
Lily Hay Newman treats information security, digital privacy and hacking for WIRED. 1
9659005] If you add a credit card to Apple Wallet for use with Apple Pay, whether it's an Apple Card or another credit card, the service will cryptographically convert the credit card number and other details into a unique card identity that is found in Apple's Security is stored item "for additional protection To complete a transaction through Apple Pay, you will need this unique identifier and one-time security code, as well as additional biometric verification via FaceID or TouchID, so your real credit card number will never be transmitted for the transaction and a cheater would need the one-time transaction code as well as your face or fingerprint to charge unauthorized charges.  The same security benefits apply to the Apple Card.
Although Apple Pay has been giving some examples of fraud since its launch in 2014 Security attorneys generally regard this protection as a solid improvement over typical credit card transactions. In cases where Apple Pay is not an option, the Apple Card is just that in terms of protection – a typical credit card.
The physical card is exactly the minimalistic, etched titanium disc that you would expect from Apple. and it's a good safety step to show only your name without a card or CVV number. However, if you use the card in a branch for a regular chip transaction, it seems to work just like any other credit card. The map itself contains no technique. It can not make contactless payments. The card appears to have a magnetic stripe on the back based on photos of Apple's announcement, with its own security issues. Although the card number does not appear physically, you can access it in Apple Wallet and make online purchases as you would with other credit cards. Apple would prefer to make online transactions with Apple Pay, but if it does not, there are no other special features of the Apple Card that protect you.
And Apple's agreement with Goldman Sachs and Mastercard – as an issuing bank and as a means of payment network respectively, is a standard setup for a branded card.
"In general, this is treated as one more MasterCard transaction for all traders, and it follows all these rules," says John Drechny, CEO of Merchant Advisory Group, an independent industry body. "And if merchants accept the card online, they still have the same payment network liability agreement, and I do not think they will be different from a normal co-branded deal."
It's the same With any other credit card, the bank and payment network involved in routing and executing transactions have normal data access. Which is not all bad. Banks analyze consumer financial data to identify patterns and reduce fraud. You usually also share and sell this data for other purposes.
This is an area where the Apple Card may prove to be outstanding and consistent with the company's focus on privacy. Apple has stated in its announcement that "Goldman Sachs will never share or sell your information to third parties for marketing or promotional purposes." Apple has not mentioned whether Mastercard has agreed not to share or sell user data, and has not returned a request from WIRED for comment.
As Apple itself says, the company does not have access to any user's transaction data or purchase information. Apple Card features that allow users to track their expenses and analyze statement information are displayed locally on users' devices, not on Apple servers.
"Apple can make the best of both worlds when it becomes a card issuer and collaborates with a bank." Gartner's Litan says Apple's decision to foreclose on accessing user data. "You can keep her nose clean."
Overall, Apple's efforts to increase the use of Apple Pay are laudable from a security and anti-fraud perspective. It is clear that the purpose of the Apple Card is to promote the acceptance and use of Apple Pay. But the Apple card itself is a bit more of the mill.
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