Contactless payments now more popular than chip and PIN - MSE News

GibbsRule_No3

I found a card with the contact less symbol on Saturday morning, I had walked past the same spot about an hour earlier and it was not there then, so a recent loss. My friend and I looked around but could not see anyone, so we went out of our way to take it to the issuing bank branch. Now the person might have already cancelled it when we found it but if they had not and we weren't honest perhaps we could have used it in a few shops? I guess all that would have happened if we had and it had been cancelled, it would have just been declined.

PPOV I have Apple Pay on my phone so they need my finger. Until I used Apple Pay I must admit I wanted a card with contact less, happy enough without now.

badmemory

I never thought I would use contactless, but then thought I would try it in a store I knew. That turned out fine & so I thought I would probably use it again. Then did one putting the card in & was distracted by a conversation & left my card in the machine, luckily realised fairly quickly & got it back. But that made me realise how much easier it was.


Obviously with no longer working/commuting & I certainly don't buy coffee my purchases are limited in number but I do normally now use my cc contactless when I can. My cash withdrawals have sunk like a stone, but I would not like to be without the ability to use cash. I may not mind too much my gardener having my bank details - but my window cleaner - no way.

eco_warrior

Nasqueron wrote: »

Not damning in the slightest, contactless fraud is a bit higher than cheque related fraud, it's about 1% of the level of online fraud so if that's your concern make sure you don't use online banking.

Contactless fraud is up because more people have them. That argument is like saying we should ban cars because there are more accidents now than in 1950 when few people had them!

As it is, there is still no evidence presented of people losing thousands of pounds. The Which test wasn't about fraud, it was where some people pretended to have stolen cards and went around buying normal stuff to see how often they got asked for a PIN which is obviously irrelevant. They should have taken the cards to places they'd never normally go (say a non-drinker starts buying in pubs or buying apple pay cards when they never bought them before) to see if it would trigger. Skimmed cards again, need a machine or phone with someone walking around waving it at your wallet to get card details which again they cannot use to buy online with unless the store doesn't check the name, address of the cardholder and doesn't require the 3 digit number which should be zero.

Agree with everything except the bit in bold. Using the card in a different way like that wouldn't trigger a fraud alert.

As an aside, its interesting to see how many people are wary of using contactless. I cant imagine a world without it. I really don't get apple pay though, its actually less convenient if anything, hardly see it being used compared to when it first came out.

mrpastry

takman wrote: »

Why do you think there will be card charges in the future?. Even when shops could legally charge for payments by card very few actually did charge for debit card payments.

Sorry ,in my original post I didn't make myself clear.
Not the shops charging the customer but the banks / card issuer charging the user, they (banks etc...) will then be charging retailer and customer.
Apologies again

Nasqueron

eco_warrior wrote: »

Agree with everything except the bit in bold. Using the card in a different way like that wouldn't trigger a fraud alert.

As an aside, its interesting to see how many people are wary of using contactless. I cant imagine a world without it. I really don't get apple pay though, its actually less convenient if anything, hardly see it being used compared to when it first came out.

It was just a guess, Which's test was basically people going around to see how many contactless they could do before getting a PIN request, not doing anything to trigger any sort of fraud alert

eddddy

Accepting contactless payments is generally cheaper for shops than accepting cash.

In London and the south east, more and more shops, cafes, food stalls on markets etc are stopping accepting cash - as well as the buses etc.

And many newer supermarket self-checkout machines don't have a facility for cash payment.

If the EU regs are withdrawn, it's more likely that stores will start adding a surcharge for cash payment and/or offering a discount for contactless.

Ergates

mrpastry wrote: »

Sorry ,in my original post I didn't make myself clear.
Not the shops charging the customer but the banks / card issuer charging the user, they (banks etc...) will then be charging retailer and customer.
Apologies again

Why would any bank commit instant comercial suicide by starting to charge customers for individual card payments?

Banks make their money from transactions from the retailers, not the customers.

Ergates

aj23 wrote: »

https://www.which.co.uk/money/banking/banking-security-and-new-ways-to-pay/new-ways-to-pay/contactless-cards-ah1q15s797hb

"In 2015, Which? was able to easily and cheaply acquire contactless-card technology and use this to remotely 'steal' key card details from a contactless card. We were then able to order items online, one of which was a £3,000 TV. "

Perhaps you should quote the whole thing:

"Someone would probably have to be very close to you to lift your card details without you knowing.

In our tests, the card had to be touched against the mobile card reading device, although other readers might be more powerful.

Industry figures suggest contactless card fraud is low, amounting to 2.7p in every £100 spent using the technology, which represents just 1.1% of overall card fraud. "

aj23_2

Ergates wrote: »

Why would any bank commit instant comercial suicide by starting to charge customers for individual card payments?

Banks make their money from transactions from the retailers, not the customers.

But that is indirectly the customer, considering the customer needs to use their card in the first place.

aj23_2

eddddy wrote: »

Accepting contactless payments is generally cheaper for shops than accepting cash.

In London and the south east, more and more shops, cafes, food stalls on markets etc are stopping accepting cash - as well as the buses etc.

And many newer supermarket self-checkout machines don't have a facility for cash payment.

If the EU regs are withdrawn, it's more likely that stores will start adding a surcharge for cash payment and/or offering a discount for contactless.

How do you work that out? There aren't any admin or facilitation costs for paying cash. It saves retailers having to pass on 2-5% of each transaction if made by card.