Contactless credit, debit card payment: Is this safe? Will you lose money? Find out here
A new cause of worry has come up for debit and credit card users. Banks are now issuing contactless credit, debit cards that do not require a PIN for shopping up to Rs 2,000. The payment is made only when the card is taken near the machine. These days many customers are getting cards with contactless payment features. Since the start of this year, most of the cards issued different banks have contactless payment feature.
Contactless credit, debit card: Cause of worry
The new contactless debit and credit cards have raised concerns among customers. The reason for this is that in malls or shops, there is no need for any type of PIN code or OTP for shopping for up to Rs 2000. The payment is made just by touching the payment machine. (Pixabay)
Contactless credit, debit card: Anand Mahindra raises concern
Last year, Mahindra Group chairman Anand Mahindra tweeted a video in which one person was secretly touching the machine on the card placed in the back of other person and making the payment. Mahindra wrote,"Is this really possible? Scary stuff. On the other hand, the next time a cashier gives me grief and asks for my pin code I would be happy to turn and show my rear." (Pixabay)
Contactless credit, debit card payment? Is this safe
According to TR Ramachandran, Country Head Visa, South Asia, contactless credit, debit card payment is totally safe. Responding to Mahindra, he had tweeted, "Not really Anandji. Ever heard of a thief leaving behind his coordinates? A KYC compliant merchant using his authorised pos terminal for such a trick would be liable for prosecution. Contactless is totally safe!" (Pixabay)
Contactless credit, debit card payment limit: What RBI says
As per RBI guidelines, there is a limit of Rs 2000 and the issuing bank in this case has a right to charge back the acquirer/merchant. (Pixabay)
Contactless credit, debit card payment: What experts think
Experts say that contactless transaction can be unsafe and promote cyber fraud. There is a need to get more clarity about its security and raise awareness. Customers should use this card carefully. (Pixabay)