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February 1st, 2016 
Awake Goy 
Susanne Posel ,Chief Editor Occupy Corporatism | Co-Founder, Legacy Bio-Naturals
Before the summer of, some of the big banks are expecting to implement ATMs that will allow customers to withdraw cash using their smartphones in lieu of a bank card.
Last year Michelle Moore, director of digital banking at Bank of America (BoA) suggested that her children will not “carry around plastic when they grow up” but use another tactic to extract cash and make payments.
Other banking institutions are jumping on the cardless band wagon; such as Wells Fargo and JP Morgan Chase. And with an estimated 3 million ATMs in the US, this task is not only arduous, but it makes complete sense.
From as far back as 2014, Apple Pay (AP) was being hailed as “breakthrough contactless payment technology” and a replacement for credit and debit cards as the future of monetary transactions.
With AP “here’s no need to open an app or even wake your display thanks to the innovative Near Field Communication antenna in iPhone 6. To pay, just hold your iPhone near the contactless reader with your finger on Touch ID. You don’t even have to look at the screen to know your payment information was successfully sent. A subtle vibration and beep lets you know.”
Debit and credit cards can be connected to the user’s iTunes account which provides “direct” communication “with 800 million” potential customers.
As a “collaborative effort” to work with banks, payment services and corporations to someday replace point-of-sale systems (PoS). Supporters of AP include:
• JPMorgan & Chase Co
• Target
• Softcard Mobile wallet
• LevelUp
• Acquirers
• Point of Sale vendors
Marc Massar, senior vice president for JPMorgan & Chase Co Chase Paymentech (CPT) was quoted as saying about AP as one of its “most prominent partners”, that they have “worked with Apple since the summer of 2013 on the project. We have a great relationship with Apple.”
Earlier this year, British media was reporting that “Britain’s top banks are in talks with Apple to introduce its iPhone ‘wave and pay’ service” during the “first half of 2015” based on unconfirmed sources.
While no specific banks are mentioned by name, it is asserted through anonymous sources that “negotiations between the Silicon Valley giant and at least one of the biggest banks have proved tricky, however, because of wrangling over the terms, including what data Apple will be able to access.”
The article states: “It is understood the bank is uncomfortable with the amount of personal and financial information Apple wants to collect about its customers. Some executives fear Apple Pay and the data it delivers to Apple could serve as a beachhead for an invasion of the banking industry.”
And with everything, AP has its flaws.
In March of 2015, PatentlyApple was defending Apple Pay against “breachability” by redirecting the blame to bankers who are “using an assortment of methods to authenticate cardholder identity on Apple Pay” which allows for more potentially fraudulent activity.
The report reads: “Yes, the banks and their policies are to blame here. Some banks get it right, some don’t. But again it goes back to the problem being one stemming from the banks. Some ask customers to enter additional data to confirm their identities. A few banks require customers to log into their online accounts to authorize the Apple Pay service. Sometimes, customers are asked to call customer-service representative to set up cards.”
The Wall Street Journal (WSJ) published an article that sent the industry on its head, intimates through unnamed sources that there may be “some kid of security weakness in Apple’s new payment system.”
The article reads: “Some banks are seeing a growing incidence of fraud on Apple’s mobile-payment service as criminals exploit vulnerabilities in the verification process of adding a credit card, according to people familiar with the matter. Banks are tightening the verification process in an attempt to curb the fraud, these people said, declining to be identified citing a confidentiality agreement with Apple.”
There has been an increase of “fraudulent activities” conducted by criminals with stolen identities through Apple Pay.
This is created through a loophole in the way some issuing banks verify credit cards before they are added to Apple Pay.
According to their iOS Security Guide : “A bank can decide whether a credit or debit card requires additional verification. Depending on what is offered by the card issuer, the user may be able to choose between different options for additional verification, such as a text message, email, customer service call, or a method in an approved third-party app to complete the verification.”
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