Details of the terms and conditions that banks and credit card companies will have to follow for the new Apple Pay system have reportedly been revealed by a financial analyst, including word that Apple will get 15 basis points for each credit card transaction, along with half a penny for each debit card use.
Sanjay Sakhrani, an analyst for Keefe, Bruyette & Woods, revealed some more specific details about Apple Pay's terms:
- On behalf of Apple, the networks will collect the portion of interchange owed to the company from the issues and will only then pass along the fees to Apple.
- Issuers must allow at least 95 percent of the cards in their portfolio to participate in Apple Pay, which may not necessarily include gift cards or ATM-only cards.
- Apple has the ability to request up to two times a year that the amounts the issuers pay are accurate. Apple reserves the rights to seek advice from independent auditors to verify accuracy.
- Issuers must supply Apple with various data statistics in nearly three dozen categories, including transaction and purchase volume data, top 100 merchants by purchase volume and average ticket.