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The Apple Pay offers a way for customers to make payments quickly and securely by saving payment methods to the Apple service. When a customer makes a purchase on your website, they are present with the saved payment options. They can then chose the payment option to use and complete the transactionsimpler and more secure alternative to using physical credit, debit, or prepaid cards. It allows you to accept payments in stores, apps, or on the web using built in hardware and software security features to make these payments easily, securely, and privately.

 MerchantE can facilitate the processing of transactions using Apple Pay directly from your website using the Payment Gateway or by using a Hosted Payment Page. This document outlines the process for submitting payments directly to the Payment Gateway.

Adding a Payment Card to Apple Wallet

When a customer creates an Apple Wallet account, payment methods must be added to wallet to make purchases. The diagram below shows the process which enables a payment method in Apple Wallet.

1. Customer adds the physical card number (FPAN) to Apple Wallet.

2. Apple Wallet coordinates with the card network to validate the customer.

3. The DPAN is generated and added to the iPhone secure element. The DPAN from the iPhone secure element is then used for Apple Pay transactions.

Making a Purchase using Apple Pay

Once payment methods have been added to Apple Pay, the method can be used to make purchases from Apple Pay compliant merchants. The diagram below shows the transaction processing when a purchase is made using Apple Pay.

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1. Biometric authentication is used to verify the customer.

2. The Apple Pay servers encrypt the DPAN from the secure element to generate a payment token.

3. The payment token is sent to the Merchant or the Hosted Payment Portal. If using the Payment Gateway directly, the payment token must be decrypted.

4. The transaction information is sent to MerchantE.

5. The Merchant receives the verification and completes the transaction.

6. Apple Wallet is notified of the approved transaction.

When a user purchases goods or services from your website, PassKit (mobile) or Apple Pay JS (Safari) determines they are using a qualified device. If they are using a qualified device, the Apple Pay button will appear as one of the payment options.

 If the customer selects Apple Pay as the payment method, they are immediately presented with the Payment Sheet. The Payment Sheet will present the customer with their stored payment options. This includes the card payment option and address.

Once the customer has selected a payment option and authorizes the request using a linked device, a payment request is created. If authorization succeeds, a payment object is generated. The payment object contains all the customer data and the payment token.

The payment token is then decrypted by the MerchantE Payment Gateway. The decrypted sent to the Merchant or the Hosted Payment Portal. If using the Payment Gateway directly, the payment token must be decrypted. The payment token contains:

• Device specific authorization number (DPAN)

• Payment amount

• One-time-use cryptogram

The contents of the decrypted payment token are is then sent to the card issuer to complete the payment.

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A payment card surcharge, also known as a checkout fee, is an additional percentage-based fee that a merchant adds to a transaction when a credit card is used for payment. You can add surcharges to credit card payments to offset the cost of processing the transaction. Surcharges are only valid for credit card transactions and cannot be applied to debit cards, prepaid cards, or ACH transactions.

Initiating Surcharges:

• The card brand must be notified 30 days in advance of beginning the surcharge. Consult the surcharge rules for each card brand accepted. On the registration forms, it is important that you list:

  • “MerchantE” as the “Acquirer/Payment Service Provider”

  • “Brand” as the “Type of Surcharge.”

    • Visa

    • Mastercard

    • Discover

• Some states prohibit surcharging. Consult your legal counsel to ensure that you are in compliance with relevant state laws. The table shows states and US territories where surcharging is prohibited or prohibited but unenforceable due to pending litigation (October 2022).