Contactless Card Payment: Real Convenience or Just Novelty?
Posted by Cap in Credit Related , Even More Ramblings |
I suppose it would be foolish of me to question multi-billion dollar companies’ decision to roll out a feature for their payment cards — after all, they must have done enough research before hand to see if it was worth the additional cost to include the embedded chip for contactless credit/debit card payment.
Plus, it’s not even really about making it convenient for the consumer — it’s about removing one less barrier so that people will use and spend more with their credit/debit card.
Quick info on contactless payment:
- VISA: payWave
- MasterCard: PayPass
- AmericanExpress: Express Pay
- Chase: blink
- No signatures required for purchase under $25
When I received my shiny new Chase Freedom credit card last year, it came with contactless payment ability. Thinking it to be very neat, I decided to gave it a whirl at my local fast food joint, but there was only one minor problem…
It didn’t work.
So I was standing there, waving my credit card to the reader, looking like a tool — for whatever reason, the reader wouldn’t pick up the radio frequency from my credit card. The funny thing was, the cashier didn’t realize the store had a new contactless reader installed, so she politely told me that that isn’t the right way to use a credit card.
After that delightful experience, I never bother using the contactless payment option again, even when I visit merchants with contactless payment readers.
However, things changed last week when I received a mailer from Chase, informing me that I’d receive a $10 statement credit if I use my blink-enabled Chase Freedom credit card at local participating merchants. As I’ve mentioned a few times, I’m a cheap bastard, so if you wave a free $10 in front of me, I’d be up for some on-the-way frivolous purchases.
Of course, the contactless payment didn’t work again.
At first I assumed my card has a defective chip, but the cashier quickly inform me that the reader I’m trying to scan with hasn’t been working properly lately.
Three other readers at three other merchants later, I finally stumbled onto a local McDonald’s with a working reader. I bought myself a double cheeseburger, wolfed down 1.5 grams of tans fat, and all of this within seconds thanks to contactless payment technology.
I use to hate self check-out machines, but these days I find them to be quite convenient for small purchases. Maybe once I get over the fear of embarrasment from waving a credit card in front of a device with nothing happening, I’d use contactless payment more.
Will I spend more as the credit card companies hope? Probably not. Does contactless payment “speed up transaction significantly” as Chase claims? Even when they were working, I honestly didn’t notice any difference.
Related Links & Post:
- Self Check-Out is NOT Fun
- To Pay, Wave Here – SmartMoney Magazine
- Contactless Smart Card – Wikipedia
- RFID: Problems & Concerns – Wikipedia
14 Comments to “Contactless Card Payment: Real Convenience or Just Novelty?”
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May 16th, 2008 at 7:55 am
The question of whether to embrace the adoption of new technology is a tricky one. RFID technology, such as that in the contactless credit card payment system, leaves a bad taste in my mouth for numerous reasons. There are privacy concerns inherent in not having to actually bare the card to transmit it’s information, and a lack of transparency from the companies involved in pushing the technology. Mastercard, Visa, et al. are not only the creators and maintainers of purchasing systems, they are the collectors and salesmen of the personal information regarding the shopping and spending habits of one of the most affluent and powerful nations on earth. I am highly skeptical when a company like visa or mastercard offers a new “feature” designed for its cardholder’s convenience. Do you remember clamoring and writing letters and signing petitions to visa asking to please, please, let me just tap my card on stuff! I certainly don’t. Keybank issued a replacement card to a family member of mine, and they were informed they had no choice but to accept a card with RFID “features”. Shouldn’t an unproven, unrequested technology that is possibly susceptible to fraud be rolled out on a voluntary basis? Whether it’s opt-in or opt-out is one thing, but I certainly wouldn’t carry one without a shielded wallet (or with the risk of sounding loony, a piece of tinfoil wrapped around it).
May 16th, 2008 at 8:24 am
It seems like the contactless transaction wouldn’t be expected to speed up every transaction, but (if it worked every time) the time gain from never having to reswipe the magnetic strip could be significant.
May 16th, 2008 at 8:34 am
If you have multiple RFID cards in your wallet, they can interfere with each other and none of them will work. They still haven’t figured out what to do to fix this inevitable problem. I carry 4 different RFID cards at all times (only one of them being a credit card).
May 16th, 2008 at 8:40 am
Last night, I used “Blink” for the first time. I too received the $10 promo mailer from 7-11 and picked up a bottle of Pepsi. I wasn’t sure how to use it exactly, but after putting the card over the pad, the lights light up and a receipt was printed out. He said next time to leave my card in my wallet, I guess I will have to try that out too.
I don’t see RFID cards being picked up too quickly unless there is one universal card that everyone can use. I would hate to go to the grocer store and see a dozen different pads to place my credit card to check out.
Fraud isn’t that much of an issue for me. I am more likely to have a cashier or server double swipe my credit card when I am not looking.
May 16th, 2008 at 9:01 am
Different Mike here. What happens when you have multiple RFID cards in your wallet & you wave your wallet in front of the reader? Do all of them get charged? Are you given the option to choose the card that gets charged? Or do they all interfere so none of them work (as A says)?
Just another gimmick to get me to use a card instead of cash. I’ll avoid it for as long as I can.
May 16th, 2008 at 10:29 am
No thanks. Scammers don’t even have to install a fake swiper to steal your info – they just have to brush past you with a receiver! If I get a card with an RFID chip in it, I’ll punch it out with a hole punch.
There are wallets that block the signal as well, to give you some level of security.
May 16th, 2008 at 11:02 am
thanks for the comments guys. I’d be honest that I’ve read a little bit about privacy/security concerns on RFID equipped documents/cards/etc., but I didn’t think it was that big of a deal. will read more into it when I get a chance to.
May 16th, 2008 at 2:13 pm
When analog cell phones first came out, it did not matter that much that the phones transmitted all data required to spoof the cell account. After a time, a guy on every street corner was able to provide cloned phones.
Electronic pickpocketing is a very real threat.
May 17th, 2008 at 4:26 am
Thanks for the article. I think it is a comment on our society that our attention span is so short and we are so compulsive that we can’t wait 10 seconds for a regular card transaction. In fact we need a TWO second transaction! Nuts.
Anway, using it once for the free ten bucks is perfect! I’m with stephanie. Punch it out after.
May 18th, 2008 at 3:06 pm
Contactless? HA!
I have yet to get an RFID-equipped card (my bank debit card and AmEx Blue cards are both RFID) to work without physical contact with the reader itself. In the amount of time I waste “tapping” trying to get them to work, I can swipe the magstripe 2 or 3 times.
May 19th, 2008 at 4:30 am
you paid for a cheeseburger with a credit card?!
May 19th, 2008 at 10:12 am
I’ve noticed a lot of merchants going the route of “no signature needed for purchases less than $25,” and if that is the case, I can’t really visualize the benefit of waving a card versus swiping a card.
At Whole Foods, I buy a sandwich and just swipe my card through the reader placed at the checkout line. What would be the difference if I just waved it…would the benefit really only be that I could (maybe) leave my card in my wallet?
I would think that improving the back-end processing times would be where real time savings could be had…
May 19th, 2008 at 2:50 pm
This is so odd because I was doing research on this topic and I was having the same problem. I came to find out that the stupid reader was broke and they didn’t bother to tell anyone.. oh well.
May 22nd, 2008 at 8:10 am
Jodi: Well to be honest it was two double cheeseburger, one snack wrap, three cookies, and a McChicken.
Looks like I’m not the only one who experience problems w/ his card.
I read more on the subjective of privacy and security, and I think I understand the concerns.. although I’m not sure it’s a perspective I share just quite yet.