Couldn’t verify debit card on Apple Pay

You were misinformed by the bank. The bank picks the verification method.

Adding additional verification

>>A card issuer can decide whether a credit or debit card requires additional verification. Depending on what’s offered by the card issuer, the user may be able to choose between different options for additional verification, such as a text message, email, customer service call or a method in an approved third-party app to complete the verification. For text messages or email, the user selects from contact information the issuer has on file.

A code is sent, which must be entered into Apple Wallet, Settings or the Apple Watch

app. For customer service or verification using an app, the issuer performs their own communication process.<<

Card provisioning security overview - Apple Support

Each Bank picks how they want customers to communicate with their support team to verify the card and account owner.

Tokenization is done by the banks Token Service Provider (TSP). Apple is not a TSP. If tokenization is incomplete, it’s a bank issue along with the verification method.

>>After your card is approved, your bank, your bank’s authorized token service provider, or your card issuer creates a device-specific Device Account Number, encrypts it, and sends it along with other data (such as the key used to generate dynamic security codes that are unique to each transaction) to Apple.<<

Apple Pay security and privacy overview - Apple Support

Apple Pay and Apple Wallet services are all active.

Apple - Support - System Status