Top 3 Key Points:
- New ID Requirement: Apple Cash will require ID verification for transactions over $500 starting October 4, 2024.
- Government Compliance: The change aligns with U.S. regulations for customer identification and anti-money laundering.
- Broader Impact: Most users will be affected as both past and future transactions count towards the $500 limit.
Apple Cash, a convenient way to send and receive money through the iOS Messages app, is making a significant change. Starting October 4, 2024, users will be required to verify their identity to continue using the service for transactions exceeding $500. This update comes as Apple aligns with U.S. government regulations aimed at preventing money laundering and ensuring customer identity verification.
The U.S. Financial Crimes Enforcement Network (FinCEN) mandates that financial institutions and companies offering money transfer services adhere to Know Your Customer (KYC) and Anti-Money Laundering (AML) guidelines. These rules are designed to protect against illegal activities by ensuring that customers’ identities are verified.
While other peer-to-peer payment services like PayPal and Venmo have long required users to verify their identities, Apple Cash users have so far been exempt from this step. However, that’s about to change. Apple has notified users that starting in October 2024, anyone using Apple Cash will need to complete the ID verification process if their total transactions exceed $500.
This new requirement coincides with the release of iOS 18, which introduces a feature called “Tap to Cash.” This feature allows users to send money more easily using Apple Pay. However, with the introduction of this new functionality, Apple is also tightening its security measures.
The $500 limit applies to both past and future transactions made through Apple Cash, whether the money was sent from your Apple Cash balance or a linked debit card. As a result, most users will be required to verify their identity to continue using the service without interruption.
Apple has emphasized that the ID verification process will be straightforward and secure, ensuring that users’ information is protected. For those who exceed the $500 limit, verifying your identity will be necessary to continue using Apple Cash for peer-to-peer transfers.
As Apple Cash becomes a more integral part of iOS, these changes aim to enhance security and comply with federal regulations. If you use Apple Cash, be prepared to complete the ID verification process to ensure continued access to all features of the service.
