I Won’t Use Apple Pay Any More
I wanted to piggyback on the recent article about Chase’s terrible international fraud alert changes (plus online purchases) with a PSA on Apple Pay. This is more of a working theory of mine based on some research and a few first hand accounts. Even though it is a theory, I do believe it has a basis in fact. Am I being overly cautious here? Probably, but I would rather be safe than sorry. Even if the issue is likely the tiniest percentage of all charges.
Using Digital Wallets / Apple Pay Is Kind Of Like A Digital Signature
Why am I freaking out and saying I won’t use Apple Pay any more? Mainly because its biggest strength is also its biggest weakness, security.
What do I mean by that? It is hard to break into a phone and get access to your digital / Apple Pay wallet. You need a code, or a face ID etc. If your phone is stolen your card info is still protected via needing to log into the phone AND having to log into your digital wallet. That is the type of two factor authentication that we strive for in a digital world, isn’t it? Yes, but maybe we don’t want that with our credit card charges.
Hear me out, when you use Apple Pay (or a digital wallet) it is kind of like a signature. You had to log in to use it and that is like you signed the receipt yourself essentially. What if fraud is involved? Wouldn’t that add another layer of proof of abuse that you need to fight against?
But My Information Is Secure, So Why Does It Matter?
It may sound like I am working against myself in this argument here. We have a super secure payment platform, with a two factor authentication requirement, what is not to like?
Well, not all fraud is digital. Not all fraud is by stealing your card either. Sometimes it is within the systems. Sometimes it is taking advantage of you to your face, and not behind the scenes.
Some for examples of what I am talking about is if they spoof their credit card reader to show you one thing and billing you another thing. What if the machine says the charge was declined, but the charge actually went through? Maybe you pay with another card because of the fake decline and are double billed. How about if you are drugged etc. and charged obscene amounts? It sure looks like you approved those charges with a clear mind because of Apple Pay.
If you are using a card in these scenarios then the bank may require the establishment to provide a signed receipt with your dispute. Have you ever had to sign an Apple Pay receipt? Think about that, really think about that. I can’t remember ever having to do that. Is it because Apple Pay is like you already signed it?
I’ll Still Use It At Times Around Home
Knowing your surroundings, and being able to easily deal with issues, is a home court advantage you when in your normal environment. It is something you lose when traveling. Especially when going into a foreign country. Even more so if you don’t speak the local language. All of that adds a barrier that will have me busting out my plastic (or metal) from now on. It isn’t as easy to deal with once you get home in these scenarios.
Potential Issues With Digital Wallets
I fully expect people to say I am being crazy and overly cautious down below. That is fine, I don’t expect most to agree with my logic. I figured it was worth sharing anyway for the few people that were already a bit on the fence about using Apple Pay etc. while traveling.
Let me know what you think about all of this down in the comments below, or over in the MTM Facebook Group.
I do not agree. Even when I use a physical credit card, I usually am not asked to sign. So the signature does not matter.
Also, I have never had an issue with disputing an international charge with Chase, AMEX or capital one.
Understandable. My one question would be, have you ever disputed an international digital wallet tap to pay charge?
Whilst I can see how you got to your conclusion, what I don’t get is why you don’t feel this exact same risk does not exist when in your home country. All the things you describe can happen anywhere.
So you could say you wont use Apple Pay in London because of these reasons. Understood but because I live in London, should I not care because i’m local. Should I not use Apple Pay when I am visiting your home town because of all the above things that may happen to me there?
Indeed reading the statistics, I am many times more likely to be the victim of crime when visiting your home country than you are visiting mine. Lets not forget, the USA is a very dangerous country compared to the rest of the world even though your media paints a very different picture.
So if you think the above risks are real enough to avoid Apple Pay, and yes this is your opinion that you are absolutely entitled to hold in a “free country” then surely you simply would not use Apple Pay at all, anywhere and under any circumstances?
That is fair and I probably won’t use tap to pay domestically any more. I’ll likely only use it for in app payments / purchases etc.
My point there was that I understand the legal system better, or how to work within it at least, and it is easier to get things accomplished if it were to happen within the US vs overseas. Hope that makes more sense.