7-Eleven's CIO: Contactless Payment Is Here - ' Addressing Contactless Security Fears '
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The cards themselves do not require the PIN needed for a typical debit card or ATM card and, for many 7-Eleven purchases, they will also not require a signature. Most banks are initially requiring signatures only for contactless purchases of more than $25.
Wider adoption of contactless payment is just one of the reasons the RFID market is expected to undergo major changes this year. To read about some of the other factors, click here.
With the lack of a PIN or signature needed for many smaller purchases, one consumer fear is that thieves will physically steal the cards and then run up bills.
The consumer defense is to alert the bank, which will then immediately void the card. Many thieves know this, so they will quickly use the card, figuring that it will be useless to them in an hour or two.
Major retailer Winn-Dixie has discovered some surprising benefits to bankruptcy. To read more, click here.
The greater industry concern today is that thieves steal magstripe cards, quickly duplicate them and then return them to the consumer. This can be done in the kitchen of a restaurant or even by a waiter or store clerk using a small concealed scanner. This sidesteps the earlier defense because the consumer doesn't know that the card has been "stolen," and could potentially remain unaware for weeks until the extra charges start appearing.
However, as the nature of contactless cards makes them much more difficult to copy than their magstripe parents, many in retail and banking see them as more secure.
Contactless cards are also seen as more secure because—in theory—they never leave the consumer's possession, providing much less opportunity for even a quick copying attempt. At restaurants, for example, servers could bring small contactless readers to the table and allow consumers to quickly scan their own cards. Retailers will presumably develop such procedures as contactless payment becomes more widespread.
Retail Center Editor Evan Schuman can be reached at Evan_Schuman@ziffdavis.com.
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