Apple Pay has launched in the US this week and lets iPhone 6 users tap their phone to pay for items, because it is linked to their bank account.
Already some users are reporting to be double charged for their purchases. Apple has admitted the problem with its mobile payment system, but says it only affects only few of Apple Pay users and is working to refund all faulty transactions.
The Apple Pay stores Visa, MasterCard and American Express credit card information and works with the iPhone 6’s touch ID fingerprint recognition system so users can touch their phone on a contactless reader to pay for goods.
The app supports credit and debit cards from the three major payment networks – American Express, MasterCard and Visa – issued by the top US banks.
The reported problem only affects Apple Pay users who rely on Bank of America, CNN reported.
A number of these bank customers discovered their bank statement showed they have been making double payments for goods purchased with Apple Pay.
Apple does not keep records of names linked to transactions. Apple Pay’s focus on security and privacy was a big selling point.
However Bank of America has agreed to refund the affected users. Around 1000 people are reported to be affected by the problem.
Apple stated, ‘We’re aware of a Bank of America issue impacting a very small number of Apple Pay users.
‘They’re working on a fix that will be available shortly and reversing any duplicate transactions.’
Apple doesn’t collect its users’ purchase history, so when the company doesn’t know what the user bought or how much they paid for it.
Card numbers are not stored on the device, instead, a unique Device Account Number is created, encrypted and stored in the Secure Element of the device.
The Device Account Number in the Secure Element is walled off from iOS and not backed up to iCloud.
Users can make purchases in stores and within apps, with credit cards issued by many US banks , which make up 83 percent of the credit card purchase volume in the country.
The app works by holding phone up to a generic card reader and pressing a finger on the TouchID button. The NFC chip is fitted across the top of the phone.
If an iPhone is lost, users can suspend all payments via the Find my iPhone service. This will not cancel the cards, either, because the card details are not stored on that device.
Apple also said about bringing the Apple Pay to the UK, however the date is still to be announced.