Contactless

thenudeone

There is an in-built limit to the number of contactless transactions which can be made before the terminal requests a PIN to verify a sale which would otherwise be contactless. They won't say how many but it's probably about three.
I have no idea whether this is built in to the card or at the authorisation stage. My guess is that terminals will only ever work as contactless when fully online, because of the additional risk created by no PIN confirmation.

reclusive46

thenudeone wrote: »

There is an in-built limit to the number of contactless transactions which can be made before the terminal requests a PIN to verify a sale which would otherwise be contactless. They won't say how many but it's probably about three.
I have no idea whether this is built in to the card or at the authorisation stage. My guess is that terminals will only ever work as contactless when fully online, because of the additional risk created by no PIN confirmation.

I think the limit depends on the card issuer and the counter is on the chip itself and most contactless transactions are definitely offline. I've done several and it never comes out of your available credit (Or as a pending transaction), it just comes out in a couple of days. But primarily contactless is an offline technology apart from in the USA (As the technology is different, magstripe based). The only time it goes online is if the card has the all ways go online flag (X2X).

Plxply

reclusive46 wrote: »

That would make since. The seem reason annoys me why they can't get people with bad credit contactless on their cards. Contactless easily supports online authorisation. Prepaid cards even have contactless.

I agree fully, I have many current accounts but as I'm just about to start university all of them are online cards apart from Metro Bank who don't offer contactless cards. I assume the student account I've applied for will come with a contactless offline card however. The only reason against issuing an online contactless card is that it needs to be held against the reader for slightly longer or it might confuse people where the merchant processes cards offline. Although I doubt anywhere takes cards through contactless means and can't go online.

reclusive46 wrote: »

I think the limit depends on the card issuer and the counter is on the chip itself and most contactless transactions are definitely offline. I've done several and it never comes out of your available credit (Or as a pending transaction), it just comes out in a couple of days. But primarily contactless is an offline technology apart from in the USA (As the technology is different, magstripe based). The only time it goes online is if the card has the all ways go online flag (X2X).

The limit is rather strange, the card automatically does risk assessment on the transaction as performed with chip and PIN. However my father has a contactless Natwest card that he has used in the same McDonalds around 10 times now around once every week, it has never prompted for a PIN, not even when it was first used. I assume the card must force the terminal to go online to get Natwest's opinion and they decide if a PIN should be prompted or not.

reclusive46

I think the whole one chip and pin transaction is hogwash and the banks don't enforce it. I've had two new cards that have worked via contactless. Regarding the amount of transactions its def the issuer that decides. Amex and Virgin will let you do a ton, I've had my barclaycard asked for a PIN after 2 transactions.

Regarding the online vs offline contactless transaction. The time holding up to the reader is no different. You put the card/pay tag (This is how I know, I've used the paytag and it says it performs it online in the FAQ). It lights up and beeps in the same amount of time but when the transaction is performed online it says "Please wait" for a second or two compared to an offline transaction where it will just say approved straight away.

Contactless is a weird technology though and the rules don't seem to apply for all issuers.

lewis92

i thought the whole point of contactless was to prevent fraud because the card never leaves your hand , your should be able to pay for anything with contactless but put the pin in if over a certain amount.. e.g £20

anyone else think you should be able to buy shoppping and other things with contactless ?

someone

reclusive46 wrote: »

I think the whole one chip and pin transaction is hogwash and the banks don't enforce it.

It might not be enforced but it is in the spec.

Gromitt

lewis92 wrote: »

anyone else think you should be able to buy shoppping and other things with contactless ?

Yes, I think you should be able to purchase goods upto the value of £100 with contactless, perhaps randomly asking you to key in a 4-digit PIN to ensure your still the card holder (without having to insert your card). I also think that contactless should report as a different card number (which is only valid for contactless transactions, so impossible to use online by fraudsters) and require a different PIN to your ATM/CHIP pin, but I don't think that's ever going to happen.

thenudeone

Plxply wrote: »

However my father has a contactless Natwest card that he has used in the same McDonalds around 10 times now around once every week, it has never prompted for a PIN, not even when it was first used. I assume the card must force the terminal to go online to get Natwest's opinion and they decide if a PIN should be prompted or not.

If the card has been used elsewhere with a PIN between the contactless transactions, this would explain why there's no problem.

The CC companies suggest that after a small number of contacless transactions in a row, the card would require a PIN anyway, even in a contactless-ready terminal

reclusive46

I think it would be much easier, instead of having contactless, just to have the chip and pin machines not ask for a PIN for low transaction amounts. Like in the US, under 25 dollar transactions don't require a signature but to make it more secure it could randomly ask for a PIN every so often.

Hooloovoo

reclusive46 wrote: »

I think it would be much easier, instead of having contactless, just to have the chip and pin machines not ask for a PIN for low transaction amounts. Like in the US, under 25 dollar transactions don't require a signature but to make it more secure it could randomly ask for a PIN every so often.

Likewise in Australia, you put your card in the C+P machine and if it is below a certain amount it just comes up "Approved" without asking for the PIN.