Contactless Credit Cards: Strengths and Weaknesses

Contactless Credit Cards: Strengths and Weaknesses

First of all, what is a contactless card? This is a non-contact technology which implies that you can make purchases by your card in one touch. It is enough to bring a card with the PayPass or PayWave logos to the special reader at the checkout and the purchase will be paid. No doubt, is a highly innovative mechanism.

It allows you to quickly pay for small purchases: you do not have to transfer the card to the cashier or wait for a delivery. Contactless cards can be issued as a complementary option to the main credit card: so you can access your major card account using an item with chip. And last popular trend is that you can pay in public transports with this unique card.

Anyway, potential cardholders have some concerns over contactless cards:

  • the lack of terminals which support such technology;
  • low security level.

However market experts claim that contactless cards are even safer than traditional ones, because:

  • they are almost impossible to forge due to the unique encryption of the built-in chip;
  • each transaction has a dynamic code, so that hackers and scammers will not be able to interfere with it and change the information;
  • the contactless terminal performs the operation only once and immediately turns off, which eliminates erroneous or intentional multiple write-offs;
  • the cardholder does not need to transfer it to the cashier at small purchases, which reduces the likelihood of theft of card data (number and CVV / CVC code for operations on the Internet).

No Chance to Fraud

But since the card can be calculated without the introduction of a pin code and even without a signature on the check, theoretically scammers can steal your card and freely pay it. However, even in the worst case everything is not so hopeless: a client may impose limit for the operation without the introduction of a pin code. So at one time scammers will not steal much.

Moreover the potential losses depend on the speed of your response. So a SMS notification is especially important. If you lose contactless “plastic” or received SMS about suspicious write-offs – immediately call the bank’s support line and block the card.

Future Prospects

Payment systems and banks, in turn, continue to work on the safety of contactless payments. In the near future, the requirements of customers for the quality of the services provided and security of use will also be increased. Anticipating this, banking establishments cooperate with major developers to provide cutting-edge software and applications for contactless payments at the international level.

The newest technologies provides for increased security of transactions, among other things is the ability to insert a PIN code from the smartphone card holder.

Modern people count not only their money but time. Be among the firsts in terms of innovative banking products, and you become among the firsts in your business.

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