Busting myths on contactless payment

June 5, 2013 by admin  
Filed under Banking

Contactless payment is becoming more and more common in shops and on public transport. You can now bypass your Oyster Card and pay for journeys on London buses directly using a contactless payment enabled credit or debit card. In fact, in December 2012 alone over 3.8 million transactions under £20 were paid for using Barclaycard’s contactless cards.

Those who aren’t familiar with contactless payment (now an automatic option on all Barclaycard credit and debit cards) often have some questions about the security and convenience of contactless technology. We’ve put together some answers to a few common questions to help you to start getting the most from contactless payment options:

What if I accidentally make a payment using my contactless card?

There are several measures in place that make it impossible to accidentally send a payment using a contactless payment card. A payment terminal only becomes “active” and able to accept payments when a sale has been entered into the terminal. In order to make the payment you then have to hold your card within a few centimetres of the reader and wait for the green light to show for the transaction to be completed. This means you cannot accidentally pay for something from a distance.

This also makes it impossible to accidentally pay for something twice – once your payment is complete the terminal will be inactive and unable to accept payments.

If my card gets stolen won’t the thief be able to make purchases without any ID?

Lots of people don’t realise that contactless payments are insured against fraud so if your card is stolen you are protected against any purchases which might be made fraudulently from your account. Additionally, because there is a transaction limit of £20 you don’t need to be worried about your account being maxed out in the short term.

If your card is stolen just call your bank’s helpline for lost and stolen cards as soon as possible and they will be able to prevent anyone else from using your card.

If contactless payments don’t require any ID, how secure is the service?

Although contactless payment doesn’t require a PIN number or signature, it uses exactly the same technology as chip and PIN to protect your details so it is just as secure in terms of data transfer.

Do many places actually accept contactless payments?

There are thousands of retailers offering the option of contactless payments and the number is increasing all the time. Keep a look out for the icon signifying contactless payment. Some examples of where you can use your contactless card as well as London buses and lots of other places include Starbucks, Café Nero, Domino’s Pizza, the Post Office, WH Smith, Asda, Tesco, Boots, The Co-op, Ikea and Thorntons.

Using contactless payment can really speed up transactions for you, and because your card is insured against fraud it’s actually more secure than carrying cash. So if you haven’t tried it yet now is the time to get involved.

Related Entries

  • Barclaycard introduces ‘wave and pay’ credit card
  • In another small step towards a cashless society, Londoners will be able to make purchases on a combined Oyster and credit card from this autumn.Along with more traditional transactions, the new 'wave and pay' card
  • Greater security could come from mobile payments compared to credit card ones
  • A recent report has suggested that consumers could enjoy a greater level of security through making mobile payments for transactions compared to credit card transactions. This comes from the Mobile Data Association. According to the
  • Contactless cards are on their way
  • The UK banking industry has confirmed that plans are in place to roll out contactless technology for debit and credit cards.We could see the new system being put in place as early as September of
  • Contactless credit cards set for launch
  • A contact and cash free payment method is set to sweep the UK as a new kind of credit card is launched by some of the nation's largest providers.MasterCard has already launched it PayPass system
  • GFA found to be ‘feasible’
  • The Thoresen Review of Generic Financial Advice released yesterday has concluded that it is a "feasible" project.Appointed by the Economic Secretary to the Treasury, Otto Thoresen carried out an examination of the practicality of providing
  • Understanding the Truth About Insurance
  • Insurance is very complicated and many people do not understand their policies, partly because of the terminology and partly because of some of the myths surrounding insurance policies. This includes such things as why premiums seem
  • FSA launches payment insurance crackdown
  • The Financial Services Authority (FSA) is launching a crackdown on the payment protection insurance industry.FSA officials have expressed concern that some consumers may not be getting the best deal and the group intends to investigate.Mystery
  • No more chip and pin for RBS credit cards
  • The Royal Bank of Scotland (RBS) is all set to introduce a new contactless credit card which uses radio waves to make payments.All you have to do is touch the new credit card on terminals

Speak Your Mind

Tell us what you're thinking...
and oh, if you want a pic to show with your comment, go get a gravatar!