Contactless
payments and
risks
By SUNIL KAJLA
143621
What is Contactless Payment?
Contactless payment is a secure payment method
using a debit, credit, or another smartcard by using
RFID technology or near-field communication. To use
the system, a consumer taps the payment card near
a point-of-sale terminal equipped with the technology
Devices Include
1.
Plastic cards
2.
Cellphones
3.
Watches
Specification and Importance
DISTANCE
REQUIRED LESS
THAN 10 CM
OPERATES AT
13.56 MHZ
TRANSFER RATE IS
106 KBITS/S TO
424 KBITS/S
REQUIRES LOW
POWER
COMPATIBLE WITH
CONTACTLESS
RFID TECHNOLOGY
How Do They Work?
Tap N Go Technology
 Consumer Must Hold device in front of the sensor.ie. POS
terminal
 Smart Antenna in the device transmit the data to the
sensor
 After the transaction is complete ,the consumer either
hears the beep or sees a flashing light
 The transaction goes to the sponsoring
networks(MasterCard,AmericanExpress,Visa)system to be
cleared and settled
 If the Purchase is more than $25,a signature or PIN may
be required
Benefits of Contactless payment
Speed - there is no need to enter your PIN or sign,
so it's ideal when you're in a hurry
Convenience - it’s like having the exact change
every time, so it's ideal for small everyday purchases
Safety - your card never leaves your hands when you
make a purchase
Security - the Westpac and Mastercard®, or Visa
security systems will continue to offer you protection
from unauthorised transactions.
Risks of using Contactless
Payment?
If card gets stolen then anyone can use it
 There is a maximum limit applied for each
transaction
This is as per the rule set by Central Bank
to prevent misuse
Oyster Card and Bank Card Clash
Card clash happens when you accidently
touch more than one card on a yellow card
reader at the same time.
Read one card when you touch in and
another card when you touch out, charging
two maximum fares for your journey
Take payment from the wrong card
Contactless card fraud surges in 2018
According to figures from Action Fraud, the UK’s national
fraud reporting service, contactless card fraud is
surging. A total of £1.8 million was stolen by fraudsters
from contactless users in 2018
Pickpockets are stealing cards to make as many
£30 transactions as possible before the
account is blocked, while more sophisticated
scammers use “skimming” devices attached to
cash machines to siphon off data
ANY QUESTION?