Daily Archives: October 18, 2012
Moving to new methods of payment is far from an easy leap for most of us. Recent figures from the Payments Council show that many are concerned about the security of such methods. Nearly two thirds of those surveyed admitted they were worried that payments using the new technology might not be secure.
It is worth remembering, of course, that we all had the same fears about debit cards, cash machines and online banking when they were introduced, and these innovations have now become commonplace. None the less, it is important to be sure about the technology that you are using before you jump in with both feet and your smartphone. The following pointers should help.
Know your limits
Contactless cards allow you to pay instantly by waving your card over a reader in a shop instead of entering a Pin. New technology such as the Barclays PayTag, which is a sticker that you can attach to your phone, and Orange‘s Quick Tap app, which lets you make a purchase using your phone, allow you to cut out the card altogether.
These transactions carry more risk than a transaction using a card and Pin, as they don’t rely on a second level of identification – merely on the fact you have the phone or contactless card with you. Your main safeguard is that the system can be used only for small payments – different limits apply in each case.
However, even small payments add up, and it is important that you know how much you are taking on and check your statements regularly.