Contactless card fraud warning: They can be used months after cancellation

20aday

In terms of Contactless payments if I use my Lloyds Bank Visa Debit <£15 it doesn't show as "pending" using Online Banking.

If I use Apple Pay it does.

I'm guessing if a physical card transaction takes place 'offline' the terminal won't prompt for a random PIN security check?

footyguy

Card provider - TSB

Can contactless cards be used after cancellation? - Yes

Maybe I should cancel my card then? Perhaps it'll improve the chances of it being accepted :cool:

Currently., it's hit or miss whether or not it will be accepted for contactless (if not, then PIN works)

It doesn't work in a new shop, or even another branch of the same shop; it fails if I shop around; it fails at least once per month wherever I am (it seems to me they reset something every month, typically around the time they pay cashback,) it seems to fail if the amount is significantly different to what I have previously typically spent, (and it can only be between £0.01 and £30.00) etc, etc

The cynic in me suggests it's a way to avoid paying me cashback... but TSB assure me it's not :cool:

footyguy

Herbalus wrote: »

I heard using a PIN when prompted by a failed contactless will work for cashback anyway.

I wish what you heard was true; sadly it isn't

Edit: whoops - you amended it the same time as I was posting reply

PixelPound

agrinnall wrote: »

Is it true that Visa set a floor limit of £15 and any contactless transaction above that amount goes online? I don't use contactless myself (although I have used Android Pay with a Visa debit card a few times for lower amounts) but I thought the limits were higher than that.

Are you thinking about the £30 limit for contactless?

reclusive46

This is also a problem with tolls in Europe. Most run offline and use the magnetic stripe, so the card can continue to be used until its expiry.

molerat

I find that with my TSB debit card anything over £15 contactless appears as pending although I do have a £14.20 spend in Asda pending at the moment.

ThinkingStraight

I agree with earlier posters, this article appears to be trying to sensationalise the contactless card system when the real issue is clearly about the offline banking system and more specifically about the bank's negligence in allowing transactions to go through for cards that have supposedly been cancelled. Those transactions should surely be insta-rejected ! What this therefore is also saying is that if a person ran into problems with their finances, and say went past their overdraft limit such that the bank disabled their account, and then went into one of these shops and bought a low value item, either using contactless swipe or using conventional chip and PIN, the shop would not bat an eyelid because the transactions are offline, and the next day, when the shop posts those transactions, the banks would authorise them because they are not checking the transactions against the bank account. That sir is an absolute nonsense situation. At the point an account is frozen, or an account bank card is cancelled, ALL subsequent transactions pertaining to that account or card (respectively) should be rejected plain and simple, whether conducted online or offline. If the banks are not performing such checks and/or are allowing such transactions to go through then that is colossal negligence of the order of the PPI and endowment mortgage scandals and the State should force all banks to run computer checks to highlight all such fraudulent transactions and reimburse customers imo.