How do contactless payments work?
In today’s time-poor society it’s easy to see how contactless “tap and go” payment methods have taken off, and many consumers are relishing the convenience of being able to make a purchase with the tap of a card.
From traditional plastic cards to watches, mobile phones and even keychains you can expect contactless payment methods to continue to grow in the future.
How does it work?
This payment system all revolves around the smart chip that is imbedded in your credit card. The terminals at bars, cafes and restaurants that you use to make your payment emit high frequency radio waves, communicating information between the reader and the data on your smart chip.
Once the chip is powered, the card and the terminal exchange security information and conduct the secure payment transaction. The amazing thing is that this whole process happens without the necessity of entering a pin and occurs entirely in less than one-third of a second.
In terms of speed and convenience you simply can’t match this alternative to cash.
Generally these cards with have security features that includes a payment limit on transactions and some contactless cards can only be used a certain number of times before customers are asked for a pin code. Transactions are generally protected by the same fraud guarantees as normal cards.
Are there any risks?
Despite their popularity there are some concerns about the risks of using this technology, with reports in 2012 suggesting card details could be skimmed by relatively inexpensive readers. As it stands however, the biggest security concern that would come with using this technology would be for someone to steal your card and for you to not realise immediately.
As long as you remain vigilant contactless “tap and go” payment methods are a safe, convenient way to make smaller level purchases.
Related links:
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The story behind the world’s first ATM