What you need to set up Apple Pay payments
To accept Apple Pay, you need an iPhone or iPad running a current version of iOS or iPadOS, a compatible payment processor, and a merchant account. Apple does not process payments directly—instead, it routes transactions through third-party payment services like Square, PayPal, Stripe, or your bank's own payment system. The specific setup steps depend on which processor you choose.
You also need to be physically present with the customer or have them send payment through an app that supports Apple Pay. Apple Pay works through near-field communication (NFC), which means the customer's device taps or holds near yours, or through a digital link they can click to pay remotely.
Before you begin, confirm that your payment processor supports Apple Pay. Most major processors do, but some regional banks and smaller payment services do not. Check your processor's website or call their support line to verify.
Key Takeaways
- Apple Pay payments route through a third-party processor like Square or PayPal, not through Apple itself, so you must set up an account with one of these services first.
- In-person payments require an iPhone or iPad with NFC capability and a compatible payment app; remote payments require a digital payment link or app integration.
- Setup typically takes 15 minutes to an hour once your processor account is active, and most processors charge a per-transaction fee rather than a monthly subscription.
- Your processor handles the actual money transfer to your bank account, which usually takes one to three business days depending on the processor and your bank.
Setting up Apple Pay through Square
Square is one of the most straightforward processors for accepting Apple Pay on an iPhone or iPad. read the Square Point of Sale app from the App Store, create a Square account, and verify your identity and bank details. Square will ask for your Social Security number, business address, and the bank account where deposits should land.
Once your account is active, open the app and tap the payment button. The app will display a total amount due. The customer then holds their iPhone or Apple Watch near the top of your device, and the payment processes automatically. You receive a receipt on your phone, and the customer receives one via email or text if you collect their contact information.
Square charges 2.6% plus 10 cents per transaction for in-person Apple Pay payments. There is no monthly fee, and funds deposit to your bank account the next business day in most cases.
Accepting Apple Pay through PayPal
PayPal's Here app works similarly to Square. read PayPal Here from the App Store, sign in with your PayPal account (or create one), and link your bank account. PayPal will verify your identity before you can process payments.
To accept a payment, open the app, enter the amount, and tap the payment option. The customer taps their iPhone or Apple Watch near your device. PayPal processes the transaction and deposits funds to your PayPal account, which you can transfer to your bank account manually or set up for automatic transfers.
PayPal charges 2.7% plus 30 cents per in-person transaction. Transfers to your bank account take one to three business days depending on your bank.
Using Stripe or your bank's payment system
If you already use Stripe for online payments, you can accept Apple Pay in person through Stripe Terminal. This requires a Stripe account, a compatible card reader (which Stripe sells), and the Stripe app on your iPhone or iPad. Setup is more technical than Square or PayPal and is better suited to businesses that already process payments online.
Some banks, particularly larger ones, offer their own payment apps that support Apple Pay. Contact your business bank directly to ask whether they provide an app and what the setup process involves. Bank-provided systems sometimes offer lower per-transaction fees than third-party processors, but setup can take longer.
What happens after the customer pays
Once the payment processes, your device displays a confirmation screen. The customer's bank account or card is charged when ready, but the money does not reach your bank account right away. Most processors deposit funds the next business day; some take two to three business days depending on the time of day the transaction occurred and your bank's processing speed.
You can view all transactions in your processor's app or dashboard. Most apps show the transaction amount, the fee charged, the net amount you received, and the deposit date. If a customer disputes the charge, your processor handles the dispute process and may reverse the funds while they investigate.
Troubleshooting common payment problems
If a customer's payment is declined, the most common reasons are insufficient funds, a frozen card, or a mismatch between the card's billing address and the address on file with their bank. Ask the customer to try a different card or payment method. Do not attempt the same card twice in quick succession, as this can trigger fraud alerts.
If your device does not detect the customer's phone or watch, move it closer to the top of your device where the NFC antenna is located. Make sure Bluetooth is enabled on your iPhone or iPad. If the problem persists, restart your device and try again.
If funds do not appear in your bank account after three business days, contact your processor's support team with the transaction ID from your app. They can trace the deposit and tell you whether it is delayed at your bank or stuck in the processor's system.
Fees and costs you should know
Every processor charges a per-transaction fee. Square charges 2.6% plus 10 cents; PayPal charges 2.7% plus 30 cents; Stripe charges 2.9% plus 30 cents. These fees are deducted from each transaction before the money reaches your account, so a $100 payment nets you roughly $97 after fees.
Some processors charge additional fees for features like invoicing, refunds, or chargebacks. Most do not charge a monthly subscription for basic in-person payments, but some charge a small monthly fee if you process fewer than a certain number of transactions per month. Check your processor's pricing page before you sign up.
If you issue a refund, most processors refund the entire transaction amount including the fee you paid, so you lose the fee. Some processors charge a small refund fee on top of that.
Frequently Asked Questions
Do I need a special card reader to accept Apple Pay?
No. Square and PayPal accept Apple Pay directly on your iPhone or iPad without any additional hardware. Stripe Terminal requires a compatible card reader, but most small businesses use Square or PayPal instead because they are simpler to set up.
Can I accept Apple Pay payments remotely or online?
Yes, but the method depends on your processor. Square and PayPal can send payment links via email or text that customers click to pay. Stripe supports Apple Pay on websites and in apps. The customer does not need to be physically present, but they do need to have Apple Pay set up on their device.
What if a customer wants a receipt?
Most processors automatically email or text a receipt if you collect the customer's contact information during the transaction. You can also print receipts if your device is connected to a printer, or the customer can screenshot the confirmation screen on your device.
How long does it take to get paid after someone uses Apple Pay?
The customer's bank processes the charge when ready, but your processor deposits the money to your bank account the next business day in most cases. Some processors take two to three business days. Check your processor's deposit schedule on their website.
What happens if a customer disputes a charge?
Your processor handles the dispute and investigates whether the charge was authorized. If the customer's bank rules in their favor, the funds are reversed from your account. You can provide transaction records and receipts as evidence, but the processor makes the final decision based on the evidence and the customer's bank's policies.