Even today, contactless payments and other new technologies sometimes scare consumers.
Don't be afraid: 5 myths about contactless payments.
Even today, new technologies sometimes frighten consumers. They are sometimes difficult to explain and can also be perceived with apprehension. The most effective way to combat this is through consumer education.
Editorial PaySpace Magazine selected the top 5 myths concerning contactless payment, and says in fact the system works.
Myth 1
A thief can easily steal money from your contactless card or device if he approaches you with a terminal
In fact, to get a device for creating this kind of "business", a person needs to contact a POS terminal supplier. Next, you need to go through the full procedure known as KYC "know your customer". This means that the person who owns this device will be identified in any case.
The term for banking and stock exchange regulation for financial institutions and companies that work with private funds. It means that before carrying out a financial transaction, the identity of the counterparty must be identified. This practice is believed to discourage money laundering and tax evasion.
Know your customer (KYC)
Myth 2
If a fraudster intercepts your contactless information, they can create a fake card and use it to pay at the store.
This is a lie as your card details are encrypted. For each individual transaction, there is a one-time unique number that is transferred between the card and the terminal. Nothing changes in contactless payment, except for the way information is transferred between one device to another.
The contactless payment method does not pose any risk when it comes to counterfeiting a payment card.
Myth 3
Even if the thief cannot counterfeit the card, he will be able to shop online or over the phone.
Contactless is a function that allows communication between the card / device and the terminal. This technology is only relevant for physical payments. And the data required for online payments, for example, the three-digit CVV / CVC code, which is on the back of your card, is not transferred to the terminal when making payments at a traditional outlet.
Myth 4
In addition to stealing your card details, thieves can also steal your identity.
Proximity cards do not transmit any information about its holder, for example, name or address. The card does not know such data, since there is no need for them to complete the transaction.
Myth 5
If someone steals my wearable device with NFC, they can make purchases from my account
Wearable payment is becoming more and more secure.
Today, wearable payments are becoming even more secure than contactless cards. It is important to understand that the device does not know your card number.
What the device knows is your card number marker, encrypted with an alternate number. This is highly secure information that must first be “detokenized” by a third party, such as a payment system, in order to complete a transaction.
In addition, smartwatches will not be able to make transactions without:
Don't be afraid: 5 myths about contactless payments.
Even today, new technologies sometimes frighten consumers. They are sometimes difficult to explain and can also be perceived with apprehension. The most effective way to combat this is through consumer education.
Editorial PaySpace Magazine selected the top 5 myths concerning contactless payment, and says in fact the system works.
Myth 1
A thief can easily steal money from your contactless card or device if he approaches you with a terminal
In fact, to get a device for creating this kind of "business", a person needs to contact a POS terminal supplier. Next, you need to go through the full procedure known as KYC "know your customer". This means that the person who owns this device will be identified in any case.
The term for banking and stock exchange regulation for financial institutions and companies that work with private funds. It means that before carrying out a financial transaction, the identity of the counterparty must be identified. This practice is believed to discourage money laundering and tax evasion.
Know your customer (KYC)
Myth 2
If a fraudster intercepts your contactless information, they can create a fake card and use it to pay at the store.
This is a lie as your card details are encrypted. For each individual transaction, there is a one-time unique number that is transferred between the card and the terminal. Nothing changes in contactless payment, except for the way information is transferred between one device to another.
The contactless payment method does not pose any risk when it comes to counterfeiting a payment card.
Myth 3
Even if the thief cannot counterfeit the card, he will be able to shop online or over the phone.
Contactless is a function that allows communication between the card / device and the terminal. This technology is only relevant for physical payments. And the data required for online payments, for example, the three-digit CVV / CVC code, which is on the back of your card, is not transferred to the terminal when making payments at a traditional outlet.
Myth 4
In addition to stealing your card details, thieves can also steal your identity.
Proximity cards do not transmit any information about its holder, for example, name or address. The card does not know such data, since there is no need for them to complete the transaction.
Myth 5
If someone steals my wearable device with NFC, they can make purchases from my account
Wearable payment is becoming more and more secure.
Today, wearable payments are becoming even more secure than contactless cards. It is important to understand that the device does not know your card number.
What the device knows is your card number marker, encrypted with an alternate number. This is highly secure information that must first be “detokenized” by a third party, such as a payment system, in order to complete a transaction.
In addition, smartwatches will not be able to make transactions without:
- Wearing a watch. The payment function will be disabled immediately after you withdraw them
- Entering a PIN. You will need to enter your PIN at least once a day to complete other contactless transactions.
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