Apple should go the whole road. If they can’t find a suitable banking partner for the supply chain, then by all means, by Ally bank and make it ApplePay only. Failing that, charter your own bank and knock everyone out of the box.
They don’t want to do that because now the SEC becomes their regulator (and slave). Regarldless. Take the idiots out of the supply chain and relaunch the product. All that matters was the fraud, and that it happened using their product.
I drive a Nissan Quest. The front end had to be replaced after 75,000 miles. Nissan doesn’t make the front end. The reason I won’t select a Nissan on my next vehicle buying experience is because they made a poor supply chain decision, and then expect me to live with it even though the rest of the vehicle performed to spec.
This isn’t hard to understand. Tech is going to need to start owning THE ENTIRE product going forward.
“Not my problem, it was the bank.” - this isn’t going to sell more ApplePay. Who is in a better position to exert influence on the bank? Not the defrauded end-user.
by = buy
Apple should buy a bank? That’s stupid, I shan’t count the ways.
Own “the entire product”? As in Crutchfield become an audio equipment manufacturer and buy a music recording studio? or Ford buy Texaco and change pumps so only their gas can be used, all arranged so only private Ford-owned roads can be driven on? or Olive Garden only serve food grown by wholly-owned subsidiary farms? Ain’t happening.
Kick non-compliant banks out of the process, yes. The product just launched 5 months ago, we’re not talking a long established service here. I’m sure Apple is having some rather animated private meetings with banks, and may very well have a timetable for partners to shape up or get shoved out. Remember, you just heard about this, what, today? takes a little time for a new large-scale service to get started and shake the stupid out of partners.
BTW: an absolutely key point seems you’ve completely missed is...
This doesn’t affect cardholders who legitimately sign up. Anyone who attaches their own card to Apple Pay doesn’t have a problem. Ergo, it doesn’t discourage people from signing up because those who do don’t have a problem.
This ONLY affect STOLEN CARDS. If a bank is stupid enough to not verify cards with the required 2-factor authentication, then they (and the BANK’S customers) have to eat the cost of fraud. Legit Apple Pay users in general are not victims of this, the bank customers are.
Your car analogy fails because it applies to all Quest cars, breaking for legitimate owners. The analogy would fit if your mechanical problems with it ONLY affected stolen Quests which theives then took to repair shops for free warranty service (the actual cost of fraudulently-obtained service then being passed on to legit buyers).
Excuse me, but again you are making a major error. No user of ApplePay has ever been defrauded during their use of ApplePay.
Nor will someone whose card was used by a fraudster using ApplePay ever know it was used in an ApplePay transaction although the card owner might surmise it if the fraud was the purchase of a high end Apple product, but the bank will never tell you how your stolen card was used. It is exactly the same thing as any credit card fraud. . . just done digitally.
Heck, I had one of my bank accounts cleaned out a couple of months before ApplePay debuted by someone using my debit card as a credit card on a Windows software site using a digital wallet! They charged and downloaded over three grand of Windows games before I stumbled on it while making an ATM deposit at my bank! The credit card fraud department called me as I was talking to a banker about my suddenly emptied account! LOL! Talk about good timing. They stopped the transfers in their tracks, but it still took ten days for the bank to finish its "fraud investigation" and put my money back in my account!
Generally, a person notices unusual activity or unauthorized charges on their card and calls the bank to complain, or alternately the bank's fraud department calls the card holder because of a change in buying patterns or locations to check the unusual charges. When the owner puts them in contest for fraud, the card is cancelled. All further charges are blocked. The only reason I knew the fraud on my account was a digital wallet was that I was sitting with a banker and privileged to see the full transaction records, which showed the card transaction originating from a digital wallet with my debit card registered there. . . with a delivery address three states away.
You keep insisting that Apple fix the problem, when the problem is not fixable by Apple. It can only be fixed by the banks who issue the cards and validate them as really, truly belonging to the person who is trying to install the card in ApplePay. The ball is in the court of the injured party, the banks, and if they want to stop bleeding money, they WILL alter the behavior that is causing the wounds.
CNN Money finds that most banks are NOT having a problem, but they use very robust credit card validation for ApplePay. . . and give examples.