Are Contactless Cards Secure?
Bottom line, yes, contactless cards are secure. To trust that statement, it helps to understand how the cards work. Contactless cards are similar to EMV/chip cards that were first issued several years ago in the United States. Both EMV and contactless cards require a secure chip to work. The chip produces a one-time code as part of the transaction authorization process. A new code is produced by the chip every time you use your card. By moving to a contactless card, the same chip technology processes your transaction, it’s just more convenient, because you don’t have to swipe or insert the card into a reader machine. To date, no chip has been duplicated. Yes, that is correct, no card chip has been duplicated. This is an excellent track record for not having a chip hacked, not one, anywhere, in the world!
Think of it as a fast-food purchase. For years people went inside to get their food. Then the drive-up was introduced. The food had the same taste and the food was still trusted by the consumer, the delivery method was just more convenient!
Here are some common concerns that you can eliminate from your worry-list:
Concern: A contactless card can process a transaction while inside my wallet.
Not true, the card must be outside of a wallet or purse and held within 10 centimeters or less from the machine in order for it to work. You can’t charge up purchases just by walking by a card reader!
Concern: If my contactless information is intercepted, a counterfeit card can be created and used fraudulently.
Every time you use your card, a dynamic one-time code is created to identify and process each transaction. It is very difficult for a fraudster to copy this encryption technology and even more so to have the ability to produce a counterfeit card with the contactless technology.
Concern: A contactless card can still be used for online transactions.
HIGHLY unlikely. Online purchases require the security code on the back of the card, the cardholder’s name and billing address for the card. None of this information is communicated during a contactless transaction. Since this information is not transmitted, fraudsters would not typically have enough information for the online payment to be authorized. This lack of information being transmitted also aids in preventing identify theft.
We’ve got your back! CUA always puts the security of member data at the highest priority level. These cards have proven to be a safe and convenient way to process card transactions, while also protecting the merchant and the financial institution. Contactless cards have been used in other countries outside the United States for several years, resulting in reduced fraud while card usage and convenience have increased. So, enjoy the new convenience of a contactless card and know that your credit union is protecting you with state-of-the-art services.
If you have additional questions about Contactless cards, please contact Info@CUofAmerica.com.