Contactless card payment is very convenient for most customers. The customer simply holds the credit card near the machine and the payment is completed without having to enter a password.
The number of people paying in this way is increasing every year. According to one of extra survey conducted, 55% of people used this payment method in 2019. The following year, that number rose to 75%. With the coronavirus pandemic, people's preference for remote payments has increased, and the ease and dependability of this form of payment has further increased its frequency.
How this technology works
Contactless payment is made with a card issued using Near Field Communication (NFC) technology. This technology allows payments without having to enter a password. In other words, you simply hold the card near the machine and the payment is made.
So if you have trouble remembering passwords, this can be a very useful feature for you. Some cards already have this feature enabled. But some cards require the customer to activate them according to the bank's policy. It's worth noting that this is not an exclusive feature of Maps. Some mobile phones, watches and digital bracelets also allow the use of the virtual card.
With the advancement of technology, it is now possible to pay in this way in many different shops. With mobile card readers it has become much more practical and easier to pay anywhere.
Is it safe to pay contactless?
Many people use not only a contactless card to pay nearby, but also their mobile phone. With digital wallets and a device with NFC technology, you can make credit or debit payments simply by bringing your smartphone close to the merchant's device.
Using a cell phone for NFC transactions is just as secure as using a card, but you still need to pay attention to the details before making a payment. The following tips apply to both payment methods, cell phone and card.
- Check the amount before confirming the transaction
Using the password to confirm the payment gives you the opportunity to verify the amount of the transaction as it appears on the machine screen all the time. Contactless payment makes transactions more dynamic and often the customer forgets to check the amount before paying.
- Pay attention to the distance between the card and the card reader
With contactless technology, payments can be made at a distance of up to 4 cm between the card and the device. It is therefore recommended to keep the card away until you can verify the amount of the transaction.Note: Depending on the payment method, certain amounts, eg over EUR 50, require entering the password. Inform find out about the price and password limits.
- Track the settlement of your transactions
With card or financial institution applications, you no longer have to wait for the bill to check what you've bought in the last month. Use this convenience to regularly check your bank statement and make sure you recognize all transactions.
- Turn on app notifications
Not only can you keep an eye on your bank statement, but you can also turn on app notifications to be notified of every new purchase. In this way, you can quickly identify which purchases are suspicious and have the credit card blocked.
- Pay attention to the map
With payment nearby, you need to be even more careful about where you leave your credit card, as it can be used by anyone without your permission. You should also avoid lending your card to others for the same reason.
- Block the card if it is lost or stolen
If you are robbed or lose your card, block the card through the application and inform your bank as soon as possible. This will protect you from future purchases.
What are the risks?
Contactless payment is protected by encryption. However, this does not prevent fraud from occurring. This is because fraud is not caused by a technical failure.
An example of fraud is entering a higher value into the machine so that the customer pays more without realizing it. But this type of scam also happens with traditional cards, so be careful.
There are also cases where the card is lost or stolen. This means that the person holding the card can make purchases without the password. So make sure you block the card as soon as possible if it is lost or stolen!
For security reasons, it is possible to disable contactless payment via your card or mobile phone. In this case, you need to access the respective bank's application, open the card-related settings and disable the contactless option. If you turn off contactless payment, you can still use your card to make purchases with your numeric PIN.
How can I tell that my card is a cash card?
Cards with this feature are marked with an antenna icon represented by three arcs, similar to the WiFi icon. This symbol is usually found on the face of the card, next to the chip, or on one of the edges.
Also, you need to check if the card reader also has this feature. The antenna symbol is also shown on the readers, often above the display. It is also possible to ask the retailer whether contactless payment is possible.
Conclusion
Using a contactless card is a very common way to expedite payments. By doing away with the traditional connection via a chip inserted into the machine, the contactless format allows payments to be made ever faster with the card or even with your personal devices such as your mobile phone or your smartwatch. But as with any means of payment, including cash, you need to be careful to avoid unnecessary hassles.