Last updated on December 9th, 2017 at 06:34 pmApple Pay Cash has premiered this week in the United States for both iOS and watchOS environments, allowing Apple customers to send person-to-person payments with the help of the iMessage system. The stock Wallet app hosts a new Apple Pay Cash Card, that can store funds received via this new payment system. But before you build a balance on this new card your will need to top it up, or directly use one of your credit or debit cards that’s added to your Apple Pay account, in order to be able to fund a peer-to-peer money transfer.
If you use a credit card you will be taxed with the 3% industry standard fee. That might not seem much, but if you become a frequent Apple Pay Cash user, this adds up in time. Fortunately, there is a way to avoid giving out 3 dollars for every 100 bucks spent, even if you don’t have enough credit on your Apple Pay Cash Card. If you do have money on the new Wallet card, funds will be subtracted from this virtual account and no fee will be charged.
How To Avoid The 3% Apple Pay Cash Fee
Use A Debit Card: If you use a debit card instead of a credit card to fund your Apple Pay Cash transactions you won’t be charged the 3 percent fee. If you did not add a debit card when you initially set up the service here is what you have to do:
1. Open the Wallet app from your iOS Home screen.
2. Tap the “+” icon available in the top-right corner, to add a new card to Apple Pay.
3. Enter the 16-digit number available on your debit card and provide the security code available on the backside of the plastic. That’s it.
How To Pay: Open the Messages app and browse to a conversation with a contact that you want to send money to. Open the iMessage App Store section and tap the Apple Pay icon. Enter the amount of money that you want to transfer an tap on Pay. Next, tap the “up arrow” and you’ll get to the prompt to select a card. If a credit card is selected the 3% Credit Card Fee will be added. Tap on the card and you will be able to switch for the recently added debit card. Notice how the fee disappears?
Authorize Payment: The final step is to use the TouchID or Face ID authentication system, depending on your iPhone model, to release the funds to your iOS contact!
What’s A Debit Card?
A debit card is an ATM card that’s issued by a bank and is linked with a bank account. Transactions via debit card are instantly authorized, but require that you have eligible funds in the paired bank account. The virtual Apple Pay Cash Card works with the same principle as a bank issued debit card.
Related: Most common ways to troubleshoot Apple Pay Cash!