The security of contactless debit cards

Primrose

I've just received a new contactless debit card from Barclays which will allow me to pay for any items under £15 by just flicking my card across an electronic reader.

I'm really concerned about the security of this and worry how it can be secure if my card is stolen or is simply dropped onto the floor and picked up by another person who can use it limitless times without knowing my pin number.

On the Barclays website it deals with questions about security by saying:

"The answer is, very secure.
All our new Contactless debit cards include the latest advanced security features required by the payment card industry. Payments are processed through the same secure Visa technology as your Chip and PIN transactions. And as an extra precaution, we'll occasionally ask you to enter your PIN to make sure it's you.
Contactless transactions are also covered by the same fraud protection as your Chip and PIN transactions."

I still don't understand how it is more secure without either a pin or a signature. Can somebody please explain to me as I now feel rather paranoic about losing this new card.

pmduk

Seems about as secure as secure as cash to me, ie not very!

c-m

First chip and pin, then card readers, now we have near field communications, it will be interesting to see what they come up with for these.

James

Just for info - phoned Barclaycard told them that I won't be making 'contactless transactions'and if they see any consider them to be fraudulent.'

This note has been added to my file BUT they can't guarantee they'll spot/stop a fraudulent contactless transaction.

Peace of mind though as I didn't want a contactless card in the first place

Olipro

Primrose wrote: »

I'm really concerned about the security of this and worry how it can be secure if my card is stolen or is simply dropped onto the floor and picked up by another person who can use it limitless times without knowing my pin number.

It can only be used for low value payments and will randomly require PIN authentication occasionally or if a number of transactions are attempted in a short space of time.

any store taking wireless cards will almost certainly have CCTV in their vicinity if not in the shop itself. additionally, it's very unlikely the bank will challenge you for such a low value purchase.

premierfella

BBC Moneybox recently covering the issue (raised by a listener). The response was as above (PIN required after an unspecified number of transactions) and the bank representative said that customers would be treated sympathetically if their card were lost and unauthorised transactions made before the loss was reported.
http://news.bbc.co.uk/1/hi/programmes/moneybox/9251158.stm

I have no experience of how easy or otherwise it actually is to get unauthorised contactless transactions refunded.

Primrose

Does anybody know if it's possible to get a replacement debit card which doesn't have the "contactless" facility embedded in it? My card had reached its expiry date anyway and was due for replacement so it rather threw me when its replacement arrived and had a facility that I wasn't expecting and didn't want.

book12

Primrose wrote: »

Does anybody know if it's possible to get a replacement debit card which doesn't have the "contactless" facility embedded in it? My card had reached its expiry date anyway and was due for replacement so it rather threw me when its replacement arrived and had a facility that I wasn't expecting and didn't want.

It's not possible to get a card without contactless. All replacement cards comes with a contactless facility from now on.

The only option is to move banks, who don't offer contactless cards.

spenderdave

According to the Money Box discussion some banks allow you to disable the contacless system on request - I think HSBC was mentioned. Personally I cannot see the point of these cards and would always want to input my PIN for all transactions. 15 quid is not a 'small amount', certainly not if you get (say) half a dozen of them at once before it is spotted.

bob_a_builder

Have had a contactless card for ages, just never seen a suitable terminal to use it at !
despite all that TV advertising about the system

Olipro

spenderdave wrote: »

According to the Money Box discussion some banks allow you to disable the contacless system on request - I think HSBC was mentioned. Personally I cannot see the point of these cards and would always want to input my PIN for all transactions. 15 quid is not a 'small amount', certainly not if you get (say) half a dozen of them at once before it is spotted.

it's not that daft, if someone nabs your card and starts trying to buy a plethora of sandwiches on it, it'll demand a PIN auth fairly rapidly; it's designed to be paranoid about multiple usage attempts in a short space of time. Additionally, say in the worst case someone somehow clears out 30 quid before you manage to call your bank, there's no way they'll be able to hold you liable; the onus will be 100% on the bank to prove you're lying about losing the card.