Most financial institutions such as Heritage Bank are now on board with contactless payment systems like payWave© and PayPass©. One topic around contactless payments is the issue of safety – what happens if the card gets stolen? Will someone be able to clean out your bank account in one swipe? Will you be accidently charged for items if the card is unintentionally too close to the machine? To put your mind at ease, the below points offer some insight into how safe contactless payments can be.
It Has Its Limits
An important safety feature of contactless payments is that it does have its limits – you can’t use it just anywhere or for any purchase amount. Depending on where you are in the world, contactless payment cards only allow for up to certain amounts. For example, in Australia, transactions of $100 of less can be processed; this means if your card does get stolen, no large purchases can be made. If you wish to make a larger purchase you will have to enter your pin like a regular card. Also, withdrawing cash, whether from a cash machine or as part of your purchase, is not available via contactless payment; a pin is required for these types of transactions no matter how small the amount.
The Same Security
Contactless payment systems may work differently, but they still offer the same level of security and data protection as any other card. The most important of which is the zero liability security protection. This means that you will not be responsible for any transactions that are either unauthorised or deemed fraudulent. All cards set-up for contactless payments are also embedded with the same chip technology as any other credit card. This technology provides protection to all data associated and connected to your card.
You Have Options
Just because your card allows contactless payment doesn’t mean you have to use it every time. The option to use this form of payment is up to you; however, you can use a regular pin whenever you like. Having contactless payment on your card allows for more flexibility when making transactions. For example, if you feel your surroundings aren’t quite secure enough to use a pin, you have the option to swipe instead.
Another major concern people have in regards to using contactless payments is that you will be too close to a machine and your card will accidentally charge an amount to your card it wasn’t meant to. This isn’t the case. A contactless card needs to be within 4cm of the readers – which are usually located on a counter – and it needs to be held in position for a specific amount of time. Also, a shop attendant needs to authorise any payment being made.
Contactless payments are just one example of the new wave of technologies changing the landscape of banking. It can be scary the first time you accept new processes such as this, but once you realise the convenience of this kind of purchasing, you won’t be able to look back.
What are your biggest reservations when it comes to contactless payment methods? Discuss your answers below.