Contactless payment: what it is, functions and how the system works
Nowadays, it has become very popular to pay for all sorts of purchases by bank transfer. And it’s easier than ever before. You don’t even have to take your bank card out of your wallet. A virtual card allows you to pay by bringing your credit card, smartphone, watch or any other device within a certain distance of a cash register terminal. This payment methodology takes the convenience of shopping to a whole new level. However, many people are still concerned about the safety of such transactions. There is more to learn about the rules of contactless payment and how it works.
What is contactless payment?
Essentially, this type of payment does not require the direct use of a credit card in order to be charged for a particular purchase. So, while in the past it was necessary to use a magnetic strip on the card or a chip, now all you need to do is hold the card close to a special reader on a terminal or other banking equipment. Through this operation, the device sends the information received to the acquiring centre, where your payment is processed. As a result, the payment is either credited or cancelled for whatever reason.
One of the most important features of this type of payment is the fact that it can also be made from other technical devices, such as a smartphone, a bracelet, a smart watch to which your card is linked. The card itself can remain at home. It may not even be involved in these transactions.
A virtual debit card capable of such transactions must be specially marked – PayWave or PayPass. The virtual debit card must also be marked with a special logo. If you see such a mark when you enter a shop, you can safely go in and pay for your purchase in this way.
How does contactless payment technology work?
The technology has a name: NFC. It stands for Near field communication, which means “near field communication”. In order to better understand how the technology works, we need to break down each word individually.
For example, “close” means that all operations can be carried out from a short distance from the readers. The maximum distance is only 4 cm. “Contactless” refers to the fact that you are not required to touch the bank terminal directly with the plastic. The entire reading process is performed by means of an inductive magnetic field. “Communication” is a word everyone understands and refers to the interaction between two devices.
Security of operations
Having a free online account from WestStein or any other bank allows payments to be made without contact. Many customers still don’t trust this kind of system as they question the security of using it. Is there a risk of losing money if fraudsters bring a cheating device to your purse?
In fact, this risk is reduced to zero if the technology is used correctly. If you want to reduce the likelihood of such fraud as much as possible, all you need to do is follow 2 basic rules:
Reduce the number of payments that can be made without entering a PIN.
Set a limit on such transactions.
There is also a third way to reduce such risks – link your payment card to your smartphone. That’s because then you need to perform additional identification. This makes it much more difficult for someone to misuse your bank account. You can also activate SMS notification when you make certain purchases.
How does the WestStein prepaid card work?
WestStein offers everyone the opportunity to open a free online account for fast, contactless payment. With it, you also have the option of:
– make bank transfers not only in local currency, but also in euros;
– No overdraft, so your account is always at your fingertips;
– ease of account management, both online and via the mobile app;
– complete security and confidentiality when making online purchases and much more.
You can order a prepaid Mastercard for everyday use, or you can apply for a virtual card, which allows you to automate your expenses and income, saving time and money in the process. It is worth agreeing that this is very convenient. Plus, you can always control your finances and don’t have to worry about security.
The competition in commerce today is so great that everyone is trying to provide customers with the best possible shopping experience. Contactless payment makes it possible to buy the required goods or services as quickly as possible, with high quality and in compliance with all the necessary security measures.
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