explaining Apple’s credit card chips

Entering the Era of the Apple Credit Card

In March 2019, Apple announced its release of an Apple Credit Card, based in the wildly successful Apple Wallet. This credit card, like most today, is embedded with a microchip as well as a magnetic strip.

The security appeal of the chip card has transformed credit card transactions over the past several years. But what exactly does the chip do differently from its magnetic predecessor? How will Apple Credit Card expand on its security and functionality?


The Rise of the Chip

A chip credit card, or EMV (Europay, Mastercard, and Visa), pairs the traditional magnetic stripe with embedded microchips and require you to “dip” the card into a payment terminal instead of swiping it.

The chips provide increased security to a consumer’s financial transactions, due to the sophisticated encryption coded into the chip. Because this encryption is difficult to crack and the chips themselves are nearly impossible to replicate, chip cards present consumers with an additional level of financial security when completing in-person transactions.


Apple Credit Card and Apple Pay

As such, it’s only natural that Apple’s new credit card would incorporate the security of a chip into its new e-wallet extension.

Apple Credit Card will work in tandem with Apple Pay, Apple’s mobile wallet. This mobile wallet allows consumers to pay for purchases using their phones, as long as the phone is one of Apple’s newer models. These compatible devices include:


  • iPhone models with Face ID
  • iPhone models with Touch ID (not iPhone 5s)
  • iPad (Pro, Air, and Mini models with Touch ID)
  • Apple Watch Series 1
  • Apple Watch Series 2
  • Mac models with Touch ID
  • Mac models introduced in 2012 or later

Apple Pay and Apple Credit Card have digitized the standard credit card chip, creating a one-time unique dynamic security code, along with Face ID or Touch ID to secure a user’s purchases. Users will still be able to pay for their purchases via their phones, but they don’t have to worry about their financial information being intercepted mid-purchase.


Why? Because Apple will be unable to detect how much a consumer has bought or how much was paid for a purchase, adding to the credit card’s privacy features.


Apple Credit Card’s Additional Features

This revolutionary card also operates, Apple says, free of traditional fees, such as annual, late, international, or over-the-limit. Furthermore, Apple has claimed that it intends to provide some of the lowest interest rates in the banking industry.

These financial benefits, along with the digitized chip security, and you’ve got a competitive advantage in the credit market. If this comes to life, Apple users will have one of the most consumer-friendly credit cards available to them at their leisure.



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image attribution:  Hamik –  stock.adobe.com