Debunking 4 Common Myths About Contactless Payments via Credit / Debit Cards

Contactless payment has become the ideal choice for many consumers thanks to their speed and effortless payment process. However, many misconceptions still linger about contactless payments, which has deterred many potential users. 

Let’s break down four common myths about contactless payments:

Myth 1: Electronic Pickpocketing

Many worry that thieves equipped with a card reader can easily brush past them to ‘tap and steal’. While theoretically plausible, this is a common misconception. Legitimate readers require a payment system registered with credit card firms in order to incur the payment. Besides that, card readers have a short range and other items in your wallet such as other cards or coins will make access difficult.

Myth 2: Stolen Card Payments

This myth entails that a stolen card can be used to make an endless number of contactless payments. This is not a serious concern, as there are many countermeasures in place to prevent excessive financial loss from stolen cards. Large transactions require your PIN and there is a daily transaction limit. Furthermore, cardholders should report stolen cards immediately to the Bank. They can also deactivate their cards via PBe or Kill Switch.

Myth 3: Duplicating Cards

Another misconception is that tapping a card or phone is riskier than inserting it into a terminal. In reality, contactless payments are highly secure. They use encryption technology, which protects your card information. Each contactless transaction includes a unique code generated by the chip in the card that changes with each purchase, thereby preventing a counterfeit card from being produced from the intercepted card security details.

Myth 4: Identity Theft

Besides stealing your funds, thieves can also steal your personal information from your contactless card. Fret not, contactless cards and devices do not transmit any information about the cardholder such as name or address.