Contactless payment has been the most preferred practice nowadays across the world but people are still found in dark about it. Or, which payment transaction is supposed to be called a “Contactless Payment”?
Well, when we simply flaunt our gadget that is thought to be ingrained with contactless transaction coding hidden underneath, i.e. a smartphone or a card for that matter, by ensuring its proximity to a target device that can be a reader, a transaction occurs which is called a contactless payment as such central devices, i.e. readers pull up the payment. At some of the financial institutions and retail outlets, such a framework is called tap-and-go.
Functioning of Contactless System:
A Chip is designed and is planted in such cards, which later churn out contactless payments and emits radio waves and then, the plastic covering has an antenna that establishes a link with the contactless reader. Such an assortment of items which form crucial part of the system is called radio frequency identification technology (RFIT).
Simply put, for a payment to be a contactless, such credit cards are held close-by payment terminal, i.e. RIT reader, after which signal is gathered, card communication takes place and payment processing takes shape eventually.
No doubt, the payment terminal is the deciding factor, when it comes to success or failure of payment transaction and when any bug appears, one is encouraged to put-in their PIN.
Ways Accessible to Ensure Contactless Payment:
For such a purpose, a plethora of devices are made use of, such as key fobs, wristbands, stickers, watches, fitness trackers and more. But then, credit and debit cards are still seen widely in use in a majority of cases.
Likewise, the technology can also be utilize for emphasizing one’s identity to order the doors open and is like a factual identity proof with one or an entry permit to places where rights of admission are reserved otherwise. As for gadgets meant for contactless purposes, such could be identified by their logo, which has 4 emboldened lines, giving a belief of a wave.
Locations Where Contactless Payments Accepted:
Sans doubt, such a mode of accepting payment is widely put into use now, especially at popular restaurants, eateries, at mega retailers and even the bars and cafes that record tremendous amount of footfall, oblige customers with such type of payment mode. Then, there are some automated machines serving food and beverages where users can exercise the right of going contactless during payment.
In a latest move, such a mode of making distant payment is seen utilized in public transportation systems and city of London takes lead by offering commuters to use smartphones or such cards for riding buses and trams to office and back and to anywhere.
Should One Fear Risks, if any?
Certainly advantages galore when one opts for contactless payment in place of cash or chip. For example, one is saved from using PIN and with our smartphones only, goods can be secured without flipping wallets or purses open, time and again.
Besides, there is provided an additional security layer as such contactless deals come with a specific amount limit, while some providers also restrict the maximum amount to be paid this way to a specific number, such as $50 or 50 Pounds and if the item is costlier than this, then the rest of the amount would need to be paid through PIN or Chip.
Psssssst: Possible Risk Involved:
The risk can be felt when our card falls under wrong hands and someone may try to make payment in contactless mode. Clearly, way crucial to intimate our banks on finding our card missing.
Are Such Payments Safe And Secured?
Absolutely, the security cover around such contactless payment framework is as robust as we find in case of our PIN. In fact, there is enclosed an anti-theft tech framework that frequently moves upto the terminals which emphasizes that the info fed into such contactless transactions is in safe and robust hands, that are guided by innovative technology that is disruptive enough, not to disrupt any payment transaction done this way.
Could We Be Charged More Than We Use As Contactless Payment?
This is just next to impossible as on pushing our card- smartphone closer to a card reader, transaction culminates.
Specific payment terminals keep track of every single transaction done this way and hence we are not supposed to get duped as everything is just innovatively designed in a fool-proof framework.
If, multiple cards are recorded, card reader would confirm for one main card and remaining transactions would be sent to trash in a jiffy.
However, there are people who fear about the payment to get deducted by simply going through the terminal unintentionally. But here also, likeliness is blurred that transaction would take shape in this way and there is set very narrow distance for the contactless payments to solidify, which falls within a distance of 2 cm to 10 cm from the terminal.
Not mincing words, but there are times when card clash can take place innately and this is where incomplete transaction occurs.
A certain instance can be, when we put our wallet on yellow Oyster terminal after which a payment gets recorded from a contactless card which none intended to use.
Fraudulent Activities Uncovering on Our Card or The Instance of Theft:
Our contactless card has an in-built chip which acts like a safety valve, thereby protecting us from such approaches unwarranted always. The chip works upon a framework of explicit codes, supplemented by digital signatures, every single time payment is made, therefore risk of our critical card details getting into wrong hands, lies far south, neither can such be cloned nor could be detected in any way.
Nevertheless, banks also keep an eye on our activities and are quick to intimate us when any activity seems to be incredulous in our records. Then, we are frequently being asked to put-in the PIN once a set number of contactless payments are made, which is just a vaccine to strengthen our account activity.