Does Apple Pay Have Buyer Protection? [Explained!]

In October of 2014, Apple launched Apple Pay – a way for users to send, receive, and transfer their funds. It functions a lot like PayPal but obviously requires that you have an Apple ID. These days, you can use Apple Pay just about anywhere – from gas stations to online merchants.

As far as these transactions go, they are considered more secure than swiping a credit or debit card. Within the United States, you can use Apple Pay in Messages to send and receive money between friends and family, which helps tighten up security quite a bit.

As Apple explains, the Apple Pay app utilizes your device’s integrated security features found within the hardware and software to offer your protection as you go about making your transactions. You also have to enter your Apple passcode and, optionally, your Touch ID or Face ID. Your passcode can be as complex as you want for that added layer of security.

Apple Pay is also supposed to protect your personal information since Apple will not access or store the original credit, debit, or prepaid card numbers you use with Apple Pay. Apple also doesn’t keep any of the transaction info that can be tied back to you, thereby keeping your transactions as private as possible. They just stay between you, the merchant or developer you buy from, and your card or bank issuer.

But what happens when you get scammed? Will Apple step in? What kind of buyer protection is available that can cover you? As it turns out, there are a few ways that Apple protections users from fraud, and I will go over them with you momentarily.

Does Apple Pay have buyer protection?

Apple Pay does not actually have buyer protection. Unlike your bank, Apple Pay is an electronic service only, and it offers its own forms of built-in security. Despite not having the buyer protection you might want, Apple Pay is considerably secure to use for everyday transactions.

So, what layers of protection are built into Apple Pay? Why doesn’t Apple offer buyer protection? And just how does Apple deal with fraud? Read on to find out how Apple handles user protection on its Apple Pay platform.

Does Apple Pay have buyer protection?

Apple Pay is basically an intermediary source between you and your bank or credit card issuer. As an electronic payment system, it does not offer any kind of buyer protection, unlike most banks and credit card companies. Instead, you pay using your bank, credit, or prepaid card.

Will my bank or credit card issuer still offer my buyer protection?

Your bank, credit, or prepaid card issuer will still give you buyer protection for purchases made using Apple Pay. If you encounter a problem with a transaction or see activity on your account that doesn’t look familiar, you need to contact that institution to initiate an investigation, as Apple Pay is not going to step in to assist.

Why doesn’t Apple Pay have buyer protection?

Since you are using a bank, credit, or prepaid card for your transaction, Apple Pay won’t offer buyer protection. The card issuer is already offering you buyer protection; Apple Pay is merely an intermediary platform for making your transactions. It would be pretty redundant for Apple Pay to offer buyer protection when your card issuer is already doing the same thing.

How does Apple protect users from fraud?

The good news is that Apple does help protect you from fraud on Apple Pay. Will scammers still try to get to you? Sure. But, if you don’t give your personal information out to someone you don’t know, you greatly reduce the likelihood of getting scammed.

Always use your own best judgment when making an online transaction, and stick to trusted sellers and institutions as best as you can. No reputable merchant, developer, or even Apple themselves will ask you for your personal information when you’re going about your business with Apple Pay.

Let’s take a look at the three ways Apple tries to prevent fraud from happening to its users.

Two-Factor Authentication

Two-factor authentication occurs when you open up the Apple Pay app. You will be sent a security code on your mobile device. You will have to put that code in, in order to proceed with your Apple Pay usage. This will enable you to log in to your Apple Pay account.

Many platforms are utilizing two-factor authentication these days because it forces you to basically say, “Hey, yes, this is really me because I got the code you sent to my phone.”

Personal Information Gets Encrypted

What happens to your personal information after you set up your account? Well, it gets sent to Apple’s servers as encrypted information. This makes it harder for hackers to get ahold of, so your personal information is not just floating around out there on the world wide web for any ol’ person to see. Instead, it is kept safe and private on an Apple server.

Users Have a Safe Login Method

When you sign up for Apple Pay, you have to use a safe login method. You have to use your passcode, Face ID, or Touch ID to log in and use the app.

The more complex your password is, the safer it will be. Hackers have a harder time accessing complex passwords, whereas it is easier for them to get ahold of short ones. Letter and number combinations are recommended in addition to special characters (like “!” or “@”).

Closing Thoughts

Apple Pay does not offer buyer protection, but you are already getting that through your bank, credit, or prepaid card issuer. So you already have that layer of protection. And Apple does take extra measures to protect your information and keep you safe from fraud.

If you have an issue with a transaction, you need to contact your card issuer to get it resolved. Apple Pay will not act as an intermediary in those situations. Still, you should be pretty well protected from scammers on Apple Pay.