CHOICE membership

Paywave, Tap-and-Go and more - what are your thoughts on contactless technology


#22

While I haven’t had any issues AS YET with paywave, I agree that it should be legislated/made compulsory that all of the financial institutions should make their paywave cards compatible with Applepay/Google pay etc as they are much more secure methods of storage of the card info.


#23

Never had a problem, and I expect that the banks have responsibility in case of theft as they do with credit cards. I should note that I have never used it in a stand-alone ATM, or an outside ATM. That’s just asking for trouble.


#24

I think this has always been about channelling more money through cards by selling their convenience for nickel and dime transactions, and accepting the level of loss - as evidenced by the no-pin limit. Of course it increases the cost for everyone sooner or later, but we are happy to pay … if any significant compromise emerges that exposes the consumer to the risk of loss then it could all change fairly quickly, and the credit facilitators simply can’t afford that …


#25

Well, I decided to try out Google Pay despite many misgivings so now I just tap my mobile handset. I still worry about security. I didn’t realise until I started using it they use a virtual card number so, in some ways, this may be more more secure than a card you tap or hand over. I just have to make sure I use all the security features on my phone - lock screen, face recognition, fingerprint etc.


#26

There are alternatives to tap-and-go technology:


#27

The laundromat on the street where I live still requires six one-dollar coins per wash, and is not always staffed. Most vendors at my local farmers’ market still want cash. ALDI charges a “credit” surcharge even though my only piece of plastic money is a debit card. Oh, yeah, paywave: the way forward. Tired of hearing vested interests praising the purportedly wonderful cashless society on the ABC as if it were not fraught with as yet unsolved problems.


#28

FWIW if you insert the card, select CHQ/SAV Aldi does not add a surcharge. Waving the card is a credit processed transaction, hence that surcharge. Aldi’s post it and at least locally most checkout staff will caution customers if they notice one about to wave what appears to be a debit card.

In that vein you might find this thread interesting.


#29

I have never liked the lack of security on Paywave via actual plastic card (if you read the fine print in a bank’s Terms & Conditions you will find that for fraudulant use of your Paywave to be covered/reimbursed by the bank you have to meet certain conditions which I didn’t meet).
So, since Paywave is now compulsory on all new credit cards, I always disable it on my cards (a small nick in the antenna using a sharp knife “Visa Vasectomy”).

Currently I only use Paywave via ApplePay on my iPhone as my fingerprint is required and no-one gets to see any credit card details.


#30

It used to be the case, but now some banks allows tap-and-go and paywave to be disabled by the user. It may require installation of a smartphone app or login to banking online. Here are some examples where paywave/tap-and-go can be disabled:

Commonwealth Bank - disable Mastercard Tap & Go or Visa payWave

Suncorp Card Lock

NAB Mobile Banking APP

Check with your own bank to see if it is possible to disable the functionality with their issued Visa Paywave or Mastercard Tap-and-Go cards.

The Financial Ombudsman Service has a factsheet about pavewave/tap-and-go:

https://www.fos.org.au/custom/files/docs/fact_sheet_paypass_and_paywave_cards.pdf

This factsheet states:

A customer can only be held liable for unauthorised contactless transactions if:
1. Their card was misused, lost or stolen.
2. They knew that their card was misused, lost or stolen.
3. They took an unreasonably long time to tell the card issuer about the misuse,
loss or theft of the card.

It also states:

There is, however, another level of protection that the EFT Code offers to consumers for unauthorised transactions on a credit card account. If the card issuer was notified about unauthorised contactless credit card transactions, and it had the right to charge back (i.e. reverse) those transactions under card scheme rules, the card issuer cannot hold the customer liable for such transactions even if the customer had delayed in telling the card issuer about the misuse, loss or theft of their card. To gain the protection of this part of the EFT Code, the customer must notify the card issuer about the unauthorised transactions within the 120 day period in which the card schemes allow a transaction not authorised by the cardholder to be charged back.


#31

OK, I’m an old fossil, but I still prefer cash. I set myself a monthly limit for discretionary spending and this is far easier to control with cash. All my recurring expenditure is paid by direct debit through internet banking. I have a rarely used credit card on which I have paid no charges in over 10 years. Whenever used it is paid in full by the due date.


#32

There are many like you…

We are possibly of a slightly younger vintage and to track expenses using the ‘fantastic’ plastic, we use a personal accounting software (Reckon Personal Plus). While it is a little effort, it pays off on the long run (especially at tax time and also monitoring account balances/juggling finances).

BTW - We have an old version of Reckon as the new versions require an annual subscription. I am against paying this as the annual subscription price is about how much a outright licence was for the same software.


#33

I use MS Excel - a spreadsheet of my own design. I don’t record my discretionary expenditure in detail - just the ATM withdrawals making up the monthly limit. Works for me.
Fully agree re the annual licence thing.


#34

What happens if someone… nicks your card?

An excellent approach. I use Excel to review credit card transactions - copy/paste, a few basic formulae for subtotals, totals and non-payment credits, and to identify the cardholder. Then I send it to my wife, asking what all those TVSN charges were… and go into hiding.


#35

I’m stunned. I use a credit card, always reject retailers’ corrupt attempts to deny me a receipt, and daily at least record transactions in a spreadsheet, and frequently log in and reconcile the bank’s records with mine. Without saying you can’t control your spending as well with cash, it can’t be easier. (I was thinking it must be much harder but then realised you have the control valve, which I’m sure you use, of recording how much cash you receive or withdraw.)


#36

The old choice article expressed uncertainty about security and echoed consumer resentment about lack of consultation, and I shared those concerns, though the latter is a bit silly, as if sharks would consult before biting.

I’ve used credit cards for over 40 years and, until this year, the only fraud event was when my wife’s handbag was stolen in a shop, and the bank had blocked it and called me when she was still at the service desk reporting the matter.

This year, I’ve had three fraud runs, and I may post separately about this, but I think it has to do with incompetence at one particular bank.

In terms of credit card details being stolen, it seems that spy hardware at ATMs and EFTPOS machines is widespread and I haven’t seen any credible evidence (not saying it doesn’t exist, but I haven’t seen it) that paywave skimming is prevalent.