In the world of electronic payment methods, things are changing. Fast. We’re here to give you the low-down on new ways to pay, so you can figure out where you might fit in when the dust settles.
Apple Pay: How it Works
Apple’s pay-by-phone technology allows you to complete transactions with a single touch. The iPhone 6 comes equipped with something called Near-Field Communication, which allows users to hold their phone near a contactless card reader and use Touch ID—Apple’s fingerprint-recognizing technology—to make a purchase.
Simply store your card information in an app called Passbook (this automatically comes on Apple’s new devices) and select “Apple Pay” at participating locations.
Apple Pay is easy to use and works with the iPhone 6 and iPhone 6 Plus with apps, and also with Apple Watch (upon availability) at participating stores. It’s also safe. The technology assigns a unique code to each transaction that is stored within the iPhone, iPad and Apple Watch. This means that your card and transaction information stays private.
EMV/Chip Card: How it Works
The EMV chip is named after its developers, Europay, Mastercard® and Visa®. This smart chip technology uses chips imbedded in cards, mobile phones and other devices to store sensitive data.
There are two types of chip cards available: contact cards, which are inserted into the card reader, and dual interface cards, which offer contact and contactless options. “Contactless” uses the same no-swipe Near-Field Communication technology as Apple Pay.
Like Apple Pay, these chip cards are safer than traditional magnetic stripe cards because the data stored in a chip is much harder to access than data on a traditional payment card.
CurrentC/ACH: How it Works
CurrentC is an app available in iOS and Android app stores that uses QR codes to complete transactions. Either the user or the cashier will scan a QR code straight from the user’s smartphone. Using an Automated Clearing House (ACH) transaction, CurrentC pulls funds directly from the user’s checking account. This eliminates the need to store debit and credit card information.
Users can earn rewards and points from loyalty programs and can also redeem offers, coupons and promotions. User information stays private with secure Paycodes that are unique to each purchase. Another safety perk: payment information lives on a cloud, not in a phone. Current C’s anticipated release is in 2015.
With so many options available and various merchants adopting or dismissing the different technologies coming to market, it’s still too early to tell where the payment landscape will ultimately settle. But Allegacy is committed to helping you make smart financial choices, which means we’ll keep you informed as things change and progress.
Soon you will be able to use your Allegacy credit and debit cards with Apple Pay, the easy, secure, and private way to pay. We’ll share more information closer to availability. Thank you for choosing Allegacy!