word writing text myths and facts business concept for usually traditional story of ostensibly historical events 162013834

Myths About the Safety of Contactless Payments

September 7, 2021

Even though card payment is still a popular method of payment, more and more people are now switching to contactless payments especially after the COVID outbreak. It’s obvious that people want to prioritize their safety by limiting physical contacts, and one way to reduce the physical contacts at the retail stores is by paying through e-wallets. 

With more than 90% of the transactions being processed through contactless payment methods, Australia has become a leader in accepting this mobile payment trend. Not only in the US and Australia, but mobile payments are gaining attention worldwide, and for good reasons. 

Despite their popularity, contactless payments are associated with a few myths that make people wonder if they should embrace this new technology or stick to cash and card payments. We have listed a few myths surrounding contactless payments that every user should know before they start using mobile apps for transactions. Here’s a look:

  1. Electronic Pickpocketing is Possible

Let’s start with the most common myth. Some people believe that it’s possible to pickpocket your contactless payment data. All it takes for a person to steal your private information is the NFC card. If they are standing close to you with an NFC card, they can record your card’s details. The NFC card can read your account number and the expiry date, but that’s it! Even that is possible if the person manages to steal the POS terminal, which is practically not possible for any non-tech savvy person. 

Overall, there is a higher chance of your physical credit/debit cards getting stolen in a public place than your contactless card information getting leaked. So, you can rest easy knowing that it is just a myth and there’s no way anyone can pickpocket your contactless cards electronically.

  1. You Might End up Paying for Someone Else

First things first, the POS system can catch your card’s data only when the card is placed 1-2 inches from the terminal. So, if you are worried that the point of sale terminal will use your card’s information for somebody else’s purchases, know that it’s highly unlikely. Besides, you should maintain distance from the person and the terminal until it is your turn to pay.

  1. It is not a Convenient Option for Merchants

Embracing a new technology may seem daunting at first, but once you get used to contactless payments, there is no payment method that seems more comfortable and safer than these payments. Contactless payments are convenient for both customers and merchants. It’s a lot easier for customers to make the payment in one click. Imagine not having to carry cash every time you go shopping. All you need is a mobile app to transfer money to the merchant’s account

For merchants, there is no need to count cash and store the money in the drawer. At the end of the day, you have to count the total cash and match it with your records. Besides, you need to transport this money to your bank every day. Not only is the process pretty inconvenient, but it is risky. What if an intruder gets access to the cash? Stealing money is not uncommon at brick-and-mortar stores. So, to avoid such issues, you should use contactless payments. The money goes directly to your bank account.

  1. The Thief can Duplicate the Contactless Cards

If a thief gets access to your contactless card information, there is a risk they can duplicate your card. It is another common myth that stops people from accepting and making payments through mobile apps. When you initiate the transaction, the card sends a unique code to the card reader to process the transaction. 

It is only a one-time number that can neither be stolen nor be copied. Even if the thief gets access to your contactless card details, they cannot duplicate the card due to the one-time code technology. There is absolutely nothing to worry about your card getting duplicated. Even a professional hacker or a tech-savvy person cannot duplicate a contactless card.

  1. Stolen Contactless Cards can Cause Losses

We have already mentioned that it’s not possible to steal contactless card information. Let’s say someone gets access to this data somehow. Now, the common myth is that the thief can make multiple transactions using the stolen card information and the money will be deducted from the cardholder’s account. For some reason, people also believe that the thief will be able to use the stolen contactless card to make payments without having to enter the security PIN.

Even if your contactless card gets stolen and you suspect any fraudulent activities on your cards, you have to report them to the bank just like how you would report the fraudulent transactions with your physical card. Besides, you don’t have to worry about incurring major losses, as contactless payments have the same policies as any physical card. You will get total reimbursement for all the transactions made by the thief. Another important thing to note here is that a PIN is mandatory for all types of contactless card transactions. Even if you are buying groceries, you need to enter a PIN to process the transaction. 

  1. The Contactless Cards can Get Stolen if Someone Gets Access to My Device

Another major concern of contactless card users is “can someone get access to my card details if they steal the device connected to these cards”. Let’s face the reality – if a thief were to get access to your device, it wouldn’t be hard for them to find your contactless card information. However, contactless commerce is a lot safer than you can imagine. The card number is not visible. The hidden number has to be deciphered by the issuer to process any transaction. 

Conclusion

Not only are the e-wallets convenient and fast, but they allow people to make the payment in one click without having to swipe the card. These contactless payments make an ideal choice for customers and merchants looking for easy and safe ways to make payments.

Save Time, Money, & Resources

Categories

Latest News

Contact HMS

Ready for the ultimate credit card processing experience? Ask us your questions here.