Contactless Payment

[Carding]

What Is Contactless Payment?
The term contactless payment refers to a secure method for consumers to purchase products or services using a debit, credit, smartcard, or another payment device by using radio frequency identification (RFID) technology and near-field communication (NFC). This payment method works by tapping a payment card or other device near a point-of-sale terminal equipped with contactless payment technology. Contactless payment is also referred to as tap-and-go or tap by some banks and retailers.

How Contactless Payment Works
Contactless payment allows consumers to pay for goods and services using their debit or credit cards with RFID technology—also known as chip cards—or other payment devices without the need to swipe, enter a personal identification number (PIN), and/or sign for a transaction. Merchants that accept contactless payment have point-of-sale terminals with a special symbol identifying the technology, which is similar to the wifi logo but turned onto its side.

Here's how it works. When the merchant's system prompts the customer to pay, they bring the card between close to the contactless payment symbol on the terminal. Information is transmitted electronically using information from the chip from the card to the bank. When the system accepts the tap, it signals the customer with a beep, green light, or checkmark. Once the approval is received, the transaction is complete.

With the rise in wireless technology and the popularity of smart devices, consumers can also connect their credit cards to a device—a smartphone, smartwatch, or fitness tracker—to pay using the contactless system as well. This is done by downloading a payment app such as Apple Pay, allowing consumers to securely store credit and debit card information to make purchases by tapping a smartphone or Apple iWatch.

In most cases, transaction sizes on cards are limited for contactless payment. The allowable amount for a contactless transaction varies by country and by the bank. Some merchants and retailers may set a low limit for their tap system in order to further prevent fraud, while others still allow large transactions to go through. Large dollar amounts may require a signature before they can be approved.

KEY TAKEAWAYS

• Contactless payment is a secure payment method using a debit or credit card, smartcard, or another payment device by using RFID technology and near-field communication.
• To use the system, a consumer taps the payment card near a point-of-sale terminal equipped with the technology.
• Contactless payment is considered a quick and easy way to pay since it doesn't require consumers to input a PIN.
• Popular in Australia, Canada, South Korea, and the United Kingdom, contactless payment has yet to make significant traction with American consumers.

Advantages and Disadvantages of Contactless Payment
Fraudsters are able to steal and clone information from magnetic stripes on the back of payment cards. This allows them to clone the information and make new cards, leading to fraud and identity theft. Contactless payment cuts down the risk to both the consumer and the merchant. That's because they're more secure than using magnetic stripes on the back of payment cards. Information submitted through the merchant terminal through contactless payment, on the other hand, is encrypted, meaning it is difficult to intercept and steal.

Despite these security features, criminals are still able to skim cards in consumers' wallets using smartphones to read. The range at which a card can be read is very short and, even if the thief is close enough to grab data, they can't create a copy of the card. This is not true of cards with magnetic stripes. That said, chip and PIN cards are still the most secure, as they can't be duplicated and require data not contained anywhere else on the card.

Consumers are now able to dispute fraudulent transactions and get replacement cards. There are also protective card sleeves and wallets that block readers from getting to your card data in the first place. As of 2015, merchants and credit card companies became liable for any fraudulent activity that took place through their systems if they had no chip technology in place.

History of Contactless Payment
Contactless payment has been around since the 1990s with only a handful of merchants and retailers using the technology during that period. Since then, it has spread out to include thousands of banks, credit card companies, merchants, and retailers around the world.

South Korea's transit authority in Seoul offered one of the world's first contactless payment systems. Launched in 1995, the system later became known as UPass, offering riders a quick and easy way to pay for bus trips using the contactless system.3 Mobil offered one of the first contactless payment systems called Speedpass in 1997, allowing customers to pay for gas using a special fob loaded with cash at participating gas stations.4 The contactless system became popular in the United Kingdom after London's transit agency implemented its prepaid contactless Oyster Card system for transit riders to use on the Underground.5 In 2014, the agency started offering commuters the option to use contactless credit and debit cards to use on the transit system.6

The U.S. market has been considerably slow to adopt contactless payment. Roughly 20% of the transactions that take place in Australia, Canada, South Korea, and the United Kingdom are conducted using contactless payment methods, according to a 2018 report from consultancy firm A.T. Kearney. Americans still use physical cash more than payment cards, to the tune of almost 50 billion cash transactions each year, or 26% of all consumer payment transactions, according to the report. Because of the volume of retailers and banks, the American market is more fragmented.

Important: Treat a digital wallet the same way you would cash—use the locks on your device and set up notifications on all your credit cards in case of fraud or theft.

Examples of Contactless Payment
Contactless payment is available through banks and other financial institutions. But other companies have also jumped on board offering their own versions of contactless payment. For instance, Google and Android introduced pay systems compatible with their devices using NFC in 2011 while Apple jumped on board with Apple Pay—its own version of the digital wallet—in 2014.

Apple Pay
Most Apple devices already come equipped with the Apple Wallet app. It allows users to store credit and debit card information onto their device—notably an iPhone or iWatch—to make purchases in stores. The system also allows purchases to be made online and through other apps. Users can also send money to friends and family through their text message system using Apple Pay.

Google Pay
Google allows users to make payments at participating brick-and-mortar and online retailers through a secure method via the Google Pay app. Instead of using a credit card number, Google shares an encrypted number tied to the user's payment card with the retailer. Just like Apple Pay, users can also send and receive money by using an email address or phone number.

Samsung Pay
Samsung also launched a digital wallet, allowing users to store their payment card information onto the app to use at merchant terminals. Samsung Pay users can also earn cashback and other rewards by using their phones to make purchases. Users simply take a photo of their card or of a barcode and tap to check out.

(c) https://www.investopedia.com/terms/c/contactless-payment.asp

 

[Hacker]

This article is for informational purposes only, as well as means of protection against this. When you read what is written below, think of it as a fantastic story. Never try to repeat what is written below.

First-person action game:

I like to read banking info structure news, constantly hanging out on RBC News.

And one of the beautiful days, the news about the introduction of PayPass bank cards was deposited in my head. First of all, I received a map with this functionality in order to study it thoroughly. And here it is - what you need for a person who does not plan to paint fences and get a pretty penny.

At the moment, I reveal the topic that I came up with. Well, maybe I think so, and many people have guessed it. And now my story, or how to steal a million in a day!

I would like to discuss in more detail the theoretical question of the danger of PayPass and how to protect yourself from it.

After this news, a lot of time has passed and bank cards with the PayPass payment system have appeared in every third person, so what is PayPass? PayPass is a contactless payment system. If there are semicircles drawn on your map that are similar to catching the signal in any phone when connected to a Wi-Fi network, this is exactly it.

These cards were issued for the convenience of bank card users. Their meaning is that it does not need to be inserted into the terminal and at a distance of 3-5 cm from the terminal you can pay for your products or goods, and you do not even need to enter a pin code!

Simply hold the card up to the terminal. But there is a small nuance that I don't care about. It consists in the fact that payment without a pin code is carried out in the amount of no more than 5000 thousand rubles, that is, 4999 rubles fly by without problems.

Knowing this information and having the money in my pocket that I needed to implement this topic, I started my movement.

I run into the network in search of buying a ready-made company, the main thing is that this company has a bank client and an account. And, preferably, the service took place in bank.

Почему в альфабанке, да потому, что на данный момент это единственный банк, который предоставляет карту привязанную к расчетному счету фирмы и не нужно время на обналичку и переводы, все можно сделать в терминале. Снять и отправить.

I bought this firm for only 50 thousand rubles, now I'm the boss of company. The next thing you had to do was purchase a wire-to-wire acquisition that goes online for making payments via cellular communication. That is, at home you charge it, push the SIM card, well, the dick is clear, the left SIM card, which can be purchased at any crossing without presenting a passport.

And of course, linking payments through this POS terminal to our current account, which I purchased from the company. That's all, it was business.

I bought VeriFone acquiring (a strong battery and a reinforced data transmission antenna.)

In general, everything is ready. You can go for a cash catch. The meaning of the theft is that the amount of 4999 rubles was entered into this terminal, which was in my bag for the beech tree, and it was waiting for payment, it was only necessary to bring the terminal 5 centimeters to the pocket of the person in which the wallet was located and, of course, where the cards were located. If there was a card with the PB. functionality, the money was debited immediately.

And I was attracted to the fact that it is difficult to prove and pre-charge.

I dressed in such a way as to look like a person from an incubator, in the sense that every fifth passer-by is dressed. Be sure to put a cap on your head and went to the shopping center.

When approaching the shopping center, the main and most difficult task was not to raise my head, so that the visor of the cap was always at an angle of 45 degrees, which does not allow video surveillance to record my face.

Also, before that, I had to learn how to set a command in the terminal to pay the amount of 4999 rubles. and go to the waiting mode for payment despite the keyboard of the terminal itself, in order not to take it out of the bag, but to do all this without looking at it.

Next, it was a small matter, to find a place with high traffic. At that time, I chose the most cool option, where I was even able to observe which pocket the wallet was put in. This is a place near the exit from the cash registers of large sales halls, where people go out one by one and perfectly see where the wallet is removed.

I think a detailed scheme of theft has now been revealed.

I just had to pass by my victim and carry the bag with the acquiring card waiting for payment, at a distance of 5 centimeters from the pocket in which the card was located. After debiting and receiving payment, there was a sound that I understood, so the money was written off and received by me.

Without looking at the terminal, the command to pay the amount of 4999r and switch to the payment waiting mode was repeatedly entered. It was possible to get impudent and pass the same pocket again! That's how banking systems decided to help us save our time without thinking about security!

And you also know that in many high-traffic stores there are employees who put your purchases in bags at the exit from the cash registers after payment. They are the closest thing to a pocket with your card! My advice is not to save time by using paypass cards. Save your money!

Since knowing this topic, you realized that your money is easy to steal. By the way, you can make a payment for a maximum of 5,000 rubles without a pin code, BUT this does not mean that you will make a single payment!

Exclude card details from use, because I can specify in the payment terms information that a charge was made for using a mobile bank or servicing a bank card in the amount of 700 or 1000 rubles (which is actually the case).

And it will not arouse suspicion, no one.

To protect yourself from this threat, set a mandatory limit of no more than 1000 rubles for contactless payments. As well as the wallet where your card is stored, put the size in the compartment where the card is a piece of foil. The signal will not pass through the foil and thus it will be safe.