Magic No-Contact Cards: Safe or Not?
If there is one thing that can be said about the credit card industry, it is that they are leaders when it comes to innovation. The credit card companies are always coming up with new features, new hooks and new tricks to try to get people to use their cards over their competitors. The overwhelming majority of these innovations over the last few years has been in the department of safety and security. Things like holograms on the front of cards, the new use of the CCV number on the back of the card and multiple expiration dates have all been recent developments to make cards safer. But one of the most controversial inventions that have hit credit cards lately is the “Magic” no touch, no swipe cards. Many people are extremely concerned that the safety of their cards and even their identity is at risk.
The no-touch credit card first made an appearance with gas cards. You would simply fill ‘er up, and then wave your card at a spot on the pump or inside at the counter of the gas station. The sensor reads the card by simply waving it over the sensor and you’re done. You don’t have to input a PIN code or even sign your name to a slip of paper for the transaction to be official. This same innovation has now made it to every day credit cards like MasterCard and Visa.
Obviously, people are concerned about the security of these cards. Can someone pick up the card number from the sensor? What if I walk past a sensor with my card in my wallet, can it read it then and I’ll end up paying for someone else’s merchandize? Let’s take a closer look at these new and interesting cards.
The card works by using a computer chip embedded in the card that sends out a small radio signal that is picked up by the sensors. Various stores and vendors now accept the no-touch cards and they simply have the sensor placed on their counter for easy use. How powerful is the chip in your card? Only a few inches, say experts, so the chances of an accidental reading on your card is almost impossible unless you pass your card directly over a reader.
The biggest problem facing this new technology, say the credit card companies, is finding companies that want to use it. A recent study on no-contact cards shows that by using them, businesses and customers can save half the time they would normally use on a regular credit card transaction, but the technology is so new that many companies view it as a fad or as something that works when you want to pay outside, like at a gas pump, instead of inside at a register. Many people also feel a degree of safety by signing their name, or at the very least inputting a PIN number when they use their credit card, and the idea of simply moving a card over a sensor is just too random.
It is hard to say if the no-contact technology is here to stay or not. If credit card companies cannot convince retailers that the technology is a good investment, they will have to come up with additional security features to assuage their fears.