The Safety of Contactless Payments: Debunking Some Myths

posted on Friday, August 5, 2022 in Financial Tips

In today’s society, technology has allowed us to have the convenience of contactless payments. Since their first implementation in 1995, everybody has had more options to choose from when it comes to paying for goods and services. Today, there are contactless debit or credit cards and digital wallets such as PayPal, Google Pay, and Apple Pay.

However, there are still some people who are quite skeptical because of some misconceptions going around online. Before you try to learn how to do contactless payments, we should further discuss some facts you should know:

Myth #1: Contactless Payments Are Not Safe

In general, using contactless payment methods is safer and more secure compared to their other counterparts. That’s because every payment has to be verified first via biometric systems or a secure PIN. Plus, mobile transactions are encrypted and would require a one-time code before being used.

Myth #2: Thieves Can Easily Steal Your Money

Another common myth is that thieves can “pickpocket” you by standing close and scanning your card with an NFC or near-field communication reader. However, these devices can only read your account number and its expiration date. For a transfer to happen, it should occur in a secure setting first.

Myth #3: Identity Theft Is Easier With Contactless Payments

There are people who are worried that once they use contactless payments, a thief may intercept their personal information. Your device or contactless card will not send any sensitive information needed to conduct a transaction. Plus, during payment, a one-time code should be provided. That means every transaction can only happen with your approval.

If you accidentally misplaced your card or device or it gets stolen, you can report the incident, just like how you would with a standard physical card. You’ll be protected from any fraudulent purchases, and you won’t incur any financial loss.

Bottom Line

Contactless payment has grown and developed so much ever since they’ve been first implemented. It’s no surprise that due to their safety and security, many people are now preferring them over traditional payment methods. If you want to learn more about how to do contactless payments, reach out to us at Community 1st Credit Union. Check out our online services today.