Contactless card: is it safe? Myths and truths of the new payment method

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Contactless card: is it safe?  Myths and truths of the new payment method

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Imagine a payment method in which you don't even need to pass it by machine, remember your password or sign – all according to your bank's rules and requirements? This already exists and is growing, all over Brazil, due to its wide convenience. This is the contactless card.

However, technology has already raised a number of questions. In the end, is contactless payment secure?

Concern with the degree of security that the contactless card offers to consumers and also to entrepreneurs, is related to its great advantage: the ease of making payments.

Therefore, we have prepared a post that will explain, in detail, everything you need to know about the contactless card – including some myths related to the subject.

Good reading!

What is a contactless card?

We are used to the usual routine of using a card (debit or credit), in which the small object is inserted into the machine, we confirm the amount and enter the password so that the negotiation can then take place.

However, the contactless card brings practicality and convenience to the consumer and also to the tenants who offer the means of payment to customers.

After all, its own name already suggests the means of use: contactless (translation of the English term contactless).

The technology behind contactless payment works through approach of the card in a collection machine that accepts that method.

Automatically, the The system reads the information relevant to that transaction and the purchase is made in an instant. (either confirmation or denial).

In addition, the contactless card must be equipped with a chip that allows this wireless integration between the payment system and the object itself. This technology is known as NFC (Near Field Communication).

In fact, it is not the only revolutionary way to add convenience to the consumer. Access the article “The future of payment methods in Brazil” and discover other technologies on the rise.

The advantages of joining the contactless card

Having contactless card NFC technology at your disposal can add some obvious advantages in your routine, such as:

  • card wear is less, as you will be handling it less often and for less time;
  • the card does not come out of your hands at any time, reducing the risk of fraud during the transaction;
  • the process as a whole becomes more agile.

In Brazil, including, the need for inserting the card password is not necessary for transactions up to £ 50. Another positive point to add convenience to the consumer.

Is contactless safe? What's around this technology?

Of course, despite so many positive points, there are issues to be considered carefully when using this type of technology.

For example: during Carnival 2021, Procon-SP alerted users to scams involving the contactless card. The scammers approached the machines to the unwary revelers, debiting the amounts without their noticing.

However, the NFC is a technology considered to be quite safe. First, because the transmission range is quite short. This denotes an effort by scammers to carry out this type of fraud.

In short, this proves to be one of the biggest problems with the contactless card.

But experts point out that just adding a few layers of security (such as a money changer or inside the wallet) can reduce the impact of this crime.

Another point to note is that you can configure the payment method according to your preferences. If you choose to use the password, you can protect yourself with the ease of this scam being applied.

Myths about contactless card technology

In addition to the case mentioned above, there are some myths surrounding contactless card technology. And, below, we will clarify them for you, check it out:

  • O card cannot be cloned just by capturing the information through NFC technology. That's because there are encryption measures applied to prevent this type of fraud in the digital and physical environment;
  • online purchases cannot be made on your behalf, with this technology, because there is a need for a terminal to carry out the purchase;
  • it is also not possible to steal your personal data. The contactless card does not have this type of information shared during debit or credit transactions.

In other words, there are even situations to be circumvented and resolved in the short and medium term, but the solutions are progressing in the same proportion.

Thus, the contactless card remains – for specialists – an option as safe as any of the other forms of payment on the market.

Care is necessary, yes, but just as it is already required when shopping in physical stores and also e-commerces.

It is enough to know exactly what measures to take and precautions to stay only with the benefits of this new payment method that is already consolidating around the world.

An option for the immediate future

As we have seen, we are facing a technology that has already been applied in several countries and continents, such as Europe, and is advancing rapidly in Brazil.

With the contactless card, people will have more agility, extra layers of protection in their face-to-face transactions and less and less contact with the payment method itself.

This is yet another way to get closer to the great benefits of the digital transformation that has set the tone for the 21st century, so far. And it keeps up with some of the other trends that are here to stay for good, such as wages on demand – and that, here, you can enjoy its advantages through our solution called HR Consultants UKy!

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As a result, it also reduces company expenses with layoffs and labor agreements.

Watch the video below to understand how this new technology works.

So, did you like to know more about the contactless card? Did you take your doubts? If you got a flea behind your ear, leave it in the comments and we'll get back to you.

If you are interested in knowing more about the technology of payment on demand and also know the main market trends that have revolutionized the sector, as a whole, take the opportunity to subscribe to our newsletter.

To do this, just fill in your name and email address, at the bottom of our blog! Then, you will receive all of our tips and news first hand, right in your email inbox! See you there!

Talk to an expert and discover even more gains that your company can make by offering a benefit like the HR Consultants UKy.

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