Talking about Contactless payment methods, everything is going digital and things don’t seem to stop. From payments through debit cards to mobile wallets and more, online payment technology is growing at a great pace. With the advancements in technology, the smart card payment system is making its way to almost every pocket, allowing consumers to make payments without even using PIN. The payment is process simply through biometric authentication. Since this technology is still in its growing phase, many people have various myths about it, some of which we are going to debunk in this blog, so keep reading.
What is a smart card payment methods?
The smart card payment system is a mode of digital payment wherein a contactless payment card is involve that will be use to make payments. The smart card is a physical card, just like your normal debit or credit card, but it will have an embedded integrated chip that acts as a security token. An impressive thing about these contactless smart cards is that they are equip with a biometric authentication facility, which means you need not put in a PIN to authenticate the payment. The card knows you are using it and it will automatically process the payment, using your fingerprints as the PIN. To ensure the safety of users, these smart cards are design to be tamper-resistant and use encryption so that the payment is process safely.
Myths About the Safety of Contactless Payment methods
Since there is no PIN involve when the payment is make using smart cards, many people feel unsafe about using them. Following this, there have been various myths about these cards. Some of these myths involve the followings.
Electronic pickpocketing is possible
One of the common things that people believe about these smart cards is that anyone can steal these cards and then use them because there is no PIN require to process the payment. People also think that anyone with an NFC card reader can obtain your contactless payment information. Well, the fact is just the opposite; these contactless payment cards are back with the most advanced biometric authentication technology and only your fingerprints can process the payment.
While the NFC system can read the card, the payment will only complete when your fingerprints are there on the card. So when you will allow the card to make payments, only then it will be done.
Duplicating Contactless Cards
There have been various incidents when the debit and credit cards of people were clone across the world to steal money by fraud. Since there is no PIN involve, there are higher chance of losing money if the card is stolen, or duplicate. This is what many people believe across the world, which is a complete myth. Every transaction made using these smart cards is completely safe and is complete with the help of a one-time code that identifies the transaction.
These one-time codes are back by advance encryption technology. So, even if anyone successfully steals your card, there are least chances to duplicate it because of the one-time code feature. Additionally, each payment is process with the help of biometric authentication, there is no chance for anyone to make the payment without using your fingerprints.
Losses From a Stolen Card
We have already discussed that it is very tough for anyone to steal a contactless payment card. But let’s say it did happen. It is believe that the owner of the contactless payment card will have to pay for any fraudulent transactions, which means huge losses. While there are usually no limits to using contactless payment cards. Many people believe that the card could be use limitlessly as there is no PIN involve for payment processing. Well, the fact is that these cards are completely safe. In case of a stolen card, you can report it, just like your normal physical card. The policies made for these smart cards are much like most physical cards. In that the banks would reimburse your money due to fraudulent purchases. And since PIN is require for larger transactions. This helps add an additional layer of safety to protect you from a large financial loss.
Contactless Payments and Identity Theft
In modern days, identity theft is a common concern. This is something that almost everyone on the earth would want to avoid at all costs. Talking about another common myth about using contactless payment. Cards is that thieves can steal your entire identity from contactless payment cards.
But identity theft is a lot different than smart payment card fraud. While payment fraud is when someone uses your card to make unauthorize payments or purchases. Identity theft is when your identity is assume by another person for criminal purposes. So, we can say that these smart cards cannot be use for identity theft.
Contactless Payment Security
When it comes to a contactless smart card payment system, the most common concern users have on their minds is about security. While it is most common among people who are unfamiliar with the technology being use in these cards. The fact is that these payment cards are completely safe than normal debit or credit cards. Unlike traditional cards with magnetic strips, these cards come with advanced biometric authentication technology. Making it nearly impossible to clone cards or make unauthorized transactions. The chips used in these smart cards are highly advance, which are incredibly difficult to clone. Making smart cards far less vulnerable to fraud.
So when you are looking for a smarter way to make payments and don’t want to face any trouble like fraudulent payments. It is highly suggest to try a contactless payment card. We hope these myths about contactless payment. Cards will help you make a smarter choice by keeping in mind everything about this advanced payment method. The goal of using these smart cards is to ensure payments are completely safe and secure. With the help of biometric authentication.