Contactless Cards: Good news??

planteria

Chip & PIN was a big change in card payments, of course. and as has been analysed and discussed, the banks moved an element of responsibility on to their customers in the process. banks have had a stronger argument that 'the PIN was used, so it must be your fault' than they had when someone could just use a signature.

now we have contactless, what are the implications? does it shift the other way, perhaps?

"Originally Posted by MoneySaverLog View Post
Not if you keep more than one contactless card in your wallet. They cancel each other out."

thanks to MoneySaverLog for this. is it definately correct that we can protect ourselves from fraud by carrying 2 or more contactless cards together?

and what about disputed transactions on cards now? it must be easier to say "that wasn't me, it must be a mistake or fraud" re. a transaction on a customers statement?

i very rarely spend on a debit card, as i like to generate cashback via credit card purchases, and to use the credit to build a history. but does contactless mean that we are wise to use credit cards in preference to debit cards now, to enable us to dispute fraudulent transactions before the money is taken from our accounts, and for the added protection that credit cards provide?

Herbalus

It certainly does seem that fraud/theft is easier now, and I expect that we will hear a lot more disputes. There are measures in place to minimise fraud/theft, for example I heard that you can only make a certain number of contactless payments before a PIN is required, you can only spend a maximum of £20 per transaction, and contactless payment isn't available everywhere. Yet as the popularity and availability increases I can only see disputes increasing.

In cases of fraud where the cardholder no longer has the card because it has been lost or stolen, reporting the theft/loss will mean that contactless purchases after the theft should be refunded under the guarantee that contactless cards have. What will be a nightmare to sort out, and where the major problem could be, is where the card remains in the cardholder's possession and they claim fraud. Has the cardholder simply not recognised the transaction? Has the card made a payment without them knowing (like on London buses for example)? Has a colleague taken the wallet out for lunch and then returned it without their knowledge?

reclusive46

planteria wrote: »

thanks to MoneySaverLog for this. is it definately correct that we can protect ourselves from fraud by carrying 2 or more contactless cards together?

The cards can't be read if more than one contactless card (This includes and Oyster Card) are in the same wallet.

Regarding the potential for fraud, I really doubt that fraudsters are going to be interested £30 or £40, when they can skim a credit cards magnetic stripe and use it to withdraw or buy thousands.

Stompa

reclusive46 wrote: »

The cards can't be read if more than one contactless card (This includes and Oyster Card) are in the same wallet.

Not necessarily:

http://www.theguardian.com/money/2013/may/25/contactless-cards

Marauder999

My wife (who works for a bank) is under the impression that once you opt for a Contactless card then it cannot be reversed so you are stuck with it.

Herbalus

Marauder999 wrote: »

My wife (who works for a bank) is under the impression that once you opt for a Contactless card then it cannot be reversed so you are stuck with it.

For somebody who works for a bank, your wife doesn't sound very sure....!

But yes, I have heard countless stories of people wanting a non-contactless card and the bank refusing. When they're introduced there's no way out.

John1993_2

I think that they are great, and wish my bank had offered me one earlier. For low-value payments they are perfect; faster than cash, and mean that I don't have to carry round a pocketful of change.

planteria

Marauder999 wrote: »

My wife (who works for a bank) is under the impression that once you opt for a Contactless card then it cannot be reversed so you are stuck with it.

that can't be right, surely?

planteria

Herbalus wrote: »

But yes, I have heard countless stories of people wanting a non-contactless card and the bank refusing. When they're introduced there's no way out.

they are already widespread ime. just looking in my wallet, with the cards i usually carry: personal Amex, personal Barclaycard, personal HSBC debit card (for withdrawing cash), business HSBC debit card. all four are contactless.

i had a right game with Barclaycard a couple of years ago when a fraudulent transaction appeared on my account. long story short, they were adamant that my card was present, and that the correct PIN was used, and therefore insisted that the charge stood. i fought & fought, with the help of my RM at Barclays, and a professor at Cambridge University. the legalise behind Chip&PIN moved the onus our way. i just wonder if contactless takes that further, or back again. but no doubt about it, consumers have to be prepared to fight their corner regardless.

Stompa

John1993 wrote: »

I think that they are great, and wish my bank had offered me one earlier. For low-value payments they are perfect; faster than cash, and mean that I don't have to carry round a pocketful of change.

I've yet to see a machine that will accept contactless payments.

katejo

Marauder999 wrote: »

My wife (who works for a bank) is under the impression that once you opt for a Contactless card then it cannot be reversed so you are stuck with it.

It isn't a case of opting in . I was sent one earlier this year as a standard replacement . I have just used it today (only 2nd time )