subject: Contactless payments: the new convenient way to pay [print this page] Contactless payments: the new convenient way to pay
Many people dislike using their credit cards to pay for low-value purchases if they don't have any cash on them, primarily because of the time consumed by entering their PIN or writing their signature and waiting for the payment to be authorised - relatively brief segments of time that can soon add up when buying lunch or snacks on a daily basis. However, customers no longer need to wait lengthy periods for card authorisation by making use of contactless credit cards, a new and more efficient method of payment that's ideal for such situations.
Contactless payment cards already existed in coffee shop chains such as Caffe Nero, and on transport services such as the London Underground where Oyster cards need only to be held within proximity of a card-reading sensor to be processed. Contactless credit cards can be used for a wide variety of purchases and was the logical next step in implementing wireless technology into cards. The technology is fast catching on across the UK as well as further afield, in Hong Kong, around 80 per cent of purchases are now reportedly made using contactless cards.
There are many situations in which contactless credit cards can be more efficient than regular credit cards or even essential, such as when making payments at remote or unattended stations like vending machines or parking meters which are not staffed. Neither card holders nor merchants are charged for making these transactions, and merchants introducing contactless card readers will usually find the technology compatible with their existing systems.
Cards are fitted with a smart computer chip and antenna which sends out a signal to a radio frequency reader when it comes in range, and processes the payment instantly. Contactless payments can only be made without the need for a signature or PIN confirmation for purchases under a certain amount, whereas higher value transactions will require payments to be authorised in the traditional way to avoid credit card fraud.
In the future people will be a lot more likely to use their cards to pay for goods using this contactless payment technology. It will therefore be increasingly important for people to take precautions to protect their cards from loss or theft. For extra peace of mind if you were to lose your credit cards or have them stolen you can also take out credit card protection insurance.
