Understanding How Apple Pay Works

When you use Apple Pay in stores or within apps, your card details are never shared with the merchant. Apple Pay uses a unique device-specific number called a Device Account Number (DAN) that is encrypted and stored securely in the Secure Element chip on your iPhone. When you make a payment, the DAN is used to create a security code to complete the transaction. The actual credit or debit card number is never known to the merchant or Apple, and your device is authenticated by Face ID, Touch ID or a passcode.more

Exploring Apple Pay: Convenience and Security Features

To use Apple Pay, simply add your credit or debit cards in the Wallet app on your iPhone, watchOS device, or Mac and then select it when you check out. It’s simple and convenient, and it’s a safer alternative to carrying your physical credit or debit card.

Adding cards to Apple Pay is fast and easy, with support for many major banks. And when you upgrade to a new iPhone or your card expires, you can easily add it again in just a few steps.

Apple Pay requires the POS to scan or swipe your device’s display for verification, and your device must be in close proximity to the payments reader. Depending on your settings, location information about where you are when you make a purchase may be shared with Apple and the card issuer to help prevent fraud. See Control the location information you share on iPhone for more details.