Security FAQ

What makes contactless payments more secure?

Contactless payments will not only protect you from germs and viruses but also from thieves who are after your money. Contactless payments use the EMV (Europay, Mastercard, and Visa) chip and an RFID (radio-frequency identification) antenna, with a scannable range of 4-10 cm. This offers a more secure way to pay. This is possible because the EMV chip converts your account number into a one-time use code called a token.

What is a “token”?

A token is a 16-digit encryption code of your primary account number (PAN), that is randomized each and every time you complete a transaction. So the people who scan your card cannot access your account number or sensitive financial information. Instead they receive a code that acts as a more secure, one-time substitute for your PAN.

Are “tokens” safe and secure?

This encryption adds numerous layers of protection to your transactions. Not only does it replace un-encrypted bank account information that’s standard with MST, but it also limits on how much you can spend on each transaction. So if you charge too much at one time, for security purposes, you will have to input your pin as. In the U.S., and without a PIN, your purchase limit is controlled by the discretion of your bank and/or credit card providers. However, outside of the U.S., the limit is legally locked between $25-$100 (This is dependent upon which country you visit, or reside in.)

Most experts agree the token, combined with the NFC range of 4-10 cm, and the encryption and spending limits, eliminate scanning of your information or the duplication of your card—making it impossible.

How do tokens work with contactless payments?

When you hold your card close to the terminal to pay for a purchase, your card sends the token through the terminal. It zoom zips off to your card provider, who then sends the bank your actual account information Once the bank approves the information it received, it sends confirmation back to your provider, which completes the transaction.

Within seconds of holding up your card to the POS terminal, your transaction is approval and a new token is randomized for you.

Can I see some statistics on contactless payment security?

The same technology that powers EMV chip cards also powers contactless payments. So it’s virtually impossible for hackers to counterfeit contactless payments. In fact, EMV technology decreased counterfeit card fraud by 87%. Overall in-person card fraud dropped by 40%.

Take the U.K. as an example. There, more than one-third of all card transactions are made by contactless payments. And contactless cards and devices accounted for only 1% of card fraud in 2016. According to Financial Fraud Action UK, this is a 0.5 percent increase above the previous year.

But even if you end up being the unfortunate victim of fraud, the Fair Credit Billing Act has limited the liability for credit card fraud to $50. That is why security is central to all contactless payments.