Contactless payment is convenient; there’s no doubt about it. But is it safe? And how safe it is? One study suggests that one in four of all UK payments were made via contactless cards.
And while more and more people are boarding the “contactless card” train, others wonder: “Is it safe?” You’ll find the answers below (hint: contactless payment is both safe and convenient).
On Encryption Technology
Contactless transactions utilize Tap-And-Go method of payment, ensuring that every payment is intentional; if you get too close to POS device, the payment won’t be initialized. More importantly, they abide by EMV standard, set by Europay, Mastercard, Visa.) This standard was created for ATMs worldwide, as well as for every payment terminals.
The standard uses encryption keys and PIN numbers. Contactless cards, however, don’t use PIN numbers and rely solely on encryption keys.
On NFC Data
PSI-Pay suggests that Near Field Communication is the first line of defense for contactless cards. In essence, the POS device can’t read the card is an inch away (or more) from the device.
The method is simple, but also very efficient, ensuring that there aren’t any accidental payments. In fact, the NFC’s reach is less than one inch.
Limited Transaction Value
In the UK, you can spend $25 via contactless card, and 30£ in the UK (per day). If you want to spend more than that, you’ll have to enter a PIN number or confirm the payment with signature.
Many industry groups adopted the mentioned limits, claiming that they ensure the safety of their consumers. For example, the Smart Card Alliance supports the idea of contactless cards, arguing that the encryption methods are sufficient enough to protect the consumers.
They are also one of the groups that educate people on encryption methods, invests in research and helps popularize and improve contactless payment.
PSI-Pay is a monetary institution that issues e-money within the SEPA region. They are regulated by the UK Financial Conduct Authority, which also authorizes them to issue money.
PSI-Pay is a member of the MasterCard family, authorized to issue credit cards, prepaid cards, and virtual cards. The company focuses on empowering their partners by motivating them in the fields of sales, marketing, and payment card distribution and managing.
PSI-Pay’s Partner Sponsorship model ensures that the consumer’s funds (cardholders) are secure. Moreover, the model guarantees that the company meets regulatory requirements.