Is tap and go EFTPOS technology necessary?
As a Consumer and/or Merchant, has it made transactions any better for you?
Was it designed to benefit the consumer or the financial institutions?
Check out my video response below:
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Debit cards and credit cards are now equipped with a chip that has removed the need for bank cards to be swiped or inserted. No need for pin or signature at merchant terminals whilst making a purchase that is under $100. This is known as Tap and Go EFTPOS technology.
You are only required to tap the chip of your card on the merchant’s EFTPOS terminal. A beep indicates that your transaction has been approved. MasterCard and VISA have led the way with this technology with consumers having the choice between MasterCard Paypass and Visa PayWave.
Tap and Go cards have an embedded computer chip known as a Radio Frequenting Identification Device (RFID). Payment is made though a radio antenna in the bank card. This sends radio frequencies to the terminal, which allows for the tap and go process. Most terminals can receive payment at distance of no more than 4cm.
For merchants the technology is mostly non problematic. The only issue businesses would face with it is fraudulent transactions. Headaches that the bank would solve.
I am completely against tap and go EFTPOS technology as a customer for the following reasons
- It is very easy and cheap to buy a RFID tag to use for fraudulent activity. RFID credit cards transmit encryption and one time security codes along with card numbers and expiry dates. A scammer can scan the card multiple times in order to capture security codes . Data is moulded into a clone card, which replays the captured codes. A card could be used multiple times without the card holder realising.
- RFID cards can be scanned in the mail.
- Many companies today install card access doorways so they can scan employee cards and acquire date regarding their personal spending and lifestyle. This allows a further option for criminals to commit fraud.
Tap and go is a banking scam in order for banks to make more money off their customers:
- Tap and Go EFTPOS purchases are often not immediately deducted. It can take the bank from 24-72 hours to deduct money from your account. If you are not vigilant with how much you have in your account you could over draw ( if you have that facility), which will occur fees. Banks make additional money off this process.
- Banks are not giving the option for customers to not have this sort of card. You don’t have to use the tap and go feature. Once can always use the old method of swipe and PIN for any transaction. This doesn’t solve the security issues.
- Consumers are encouraged to make a large number of tap and go transactions. This means statements will be longer. These transactions are of lower dollar value, which means it will be harder to keep up with transactions and any fraudulent activity.
- Banks offer refunds on fraudulent activity though their terms can often be confusing and contradictory. Many institutions state “you have 120 days to report fraud”. They also claim that fraud must be reported immediately and without delay. You are often only covered if you exercise “vigilant care”. For example, if have not reported more than two or more fraudulent charges within a 12 month bracket. Refunds can take up to eight weeks. If the bank rules against your claim you may charged a fee.
- “A person who uses PayPass spends about 25% more time on their card on a monthly basis. We launched this product to…..have our cards used more” A MasterCard representative stated.
Are we really that pressed for time? Absolutely not. There was nothing wrong with the older pin system. The signature for credit cards was outdated, but that had been replaced by a pin. There’s no need to go further than that. The tap and go EFTPOS technology prays on the modern perception that we are too busy and need assistance. People like to give the impression that they are so busy and strapped for time that they cant spend 5 to 6 seconds on putting a pin in. People who claim to not have time to put in a pin are pretentious, too self important, and completely delusional where their time is concerned. NO ONE IS THAT BUSY!!!