Touch-And-Pay Cards Coming Your Way
While credit card fraud has recently moved to a higher level, many consumer groups are concerned that financial institutions are putting the speed of transactions over safety - cue the introduction of Touch-and Go payment cards.
A new style of payment card, which allows you to swipe your card next to an electronic reader, is being introduced in areas of London. The card is being backed by Visa and Mastercard, and while only accepted for payments of under £10, there is speculation that this may be the thin end of the wedge (prior to being opened up to higher value transactions).
This new payment method does not require the customers signature or PIN details, the card is simply held against an electronic reader which takes the card details and debits the relevant account. The system has been prompted by the growth in small value transactions of £10 or less, which total in excess of 20 billion a year in the UK.
It is forecast that there will be upwards of five million contactless cards in the market by the end of 2008, with over 100,000 retail outlets expected to accept the system. However, there are major concerns that this will attract fraudsters, with little or no chance of being traced. Some are even suggesting that if the current trial is successful then slowly but surely the maximum transaction value will be raised higher.
It seems to be a case of more haste, less speed - will the card companies live to regret this new system?
You must be logged in to post a comment.