August 15, 2018

Woman holding cell phone and debit card

In the last 10 to 15 years, mobile devices have replaced a lot of (bulky) products we used to use daily: phone, calculator, camera, video games, etc. Today, it’s taking aim at your wallet. With digital wallet apps like Apple Pay, Samsung Pay and Google Pay, it’s now possible to make electronic transactions without presenting a physical credit or debit card.

Digital wallets – now available at LUSO Federal Credit Union – securely store your payment information and passwords and allow you to complete purchases in-store and online, quickly and easily with just your phone. Because most digital wallets encrypt your account information, the number that is transmitted to a merchant during checkout is not your actual account number. Digital wallets generate encrypted account numbers for a single use, so each transaction will have a unique account number, which safeguards your information.


How do digital wallets work?

There are two types of digital wallets: device-based and web-based.

Device-based digital wallets use near field communication (NFC) technology that enables users to pay for purchases without swiping their debit or credit card. Instead, customers wave their phone (or other NFC-capable device, including certain smartwatches) near a reader at a merchant to transmit payment account information. Apple Pay, Samsung Pay and Google Pay are examples of device-based digital wallets because they require a smartphone or smartwatch to make a payment.

Web-based digital wallets allow customers to add credit or debit card information to a personal account or profile. When a customer makes a purchase online, they log into their account and use it to pay for the purchase. Web-based digital wallets allow consumers to pay for purchases without providing their card details, billing/shipping address or creating an account on the website on which they’re shopping. Visa Checkout is an example of a web-based digital wallet.


Are digital wallets secure?

Yes. Digital wallets are equipped with built-in enhanced security. Because your card information is encrypted, your account details are kept secure, making it harder for a security breach to happen.


Where are digital wallets accepted?

Many major retailers are already accepting digital wallets in-store, in-app and online. Some independent retailers have started accepting them as well. You can use your digital wallet to pay in stores that accept contactless payments, simply look for this symbol at checkout:

Digital Wallet Pay Wave


How many cards can be stored in a digital wallet?

Most digital wallets allow you to store multiple cards. When you use your digital wallet to make an in-store purchase, your screen will show your default card at the top of your device. Your other cards will be stacked at the bottom of the screen. To use a card other than your default card, simply tap the stack of cards at the bottom of the screen, then select the one you’d like to use to make your payment.

For the most up-to-date information and technical assistance with any of the digital wallet options LUSO offers, visit Apple Pay, Samsung Pay or Google Pay websites. 


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