Contactless payment is on the cusp of a breakthrough
Today, Switzerland already has more than 3'000 card terminals and cash machines equipped with the new technology for contactless payment. Swisscard assumes that this technology will spread rapidly.
Using NFC chip technology (Near Field Communication), credit cardholders can pay for smaller transactions up to 40CHF without entering a PIN code, for example at the kiosk, on public transport, in the supermarket or at the fast-food restaurant. The card only has to be held up close (less than four centimeters) to the checkout terminal. The payment process is completed in a second.
The NFC chip can also be integrated into watches and mobile phones, which opens up a whole new dimension for mobile payments.
Contactless transactions are secure. They have sophisticated encryption and processing. One crucial data element can only be used once during the process and is invalid for any subsequent transactions. Contactless transactions are authorized online at specified intervals, which increases security even more.
The PIN code also has to be entered with amounts over 40CHF. For this it is not necessary to insert your card into the terminal. This increases security even more as the cardholder does not have to hand over their card.
Although millions of these kinds of contactless transactions have been made worldwide over several years, no cases of fraud are known to date using this technology. As with all other technologies, there is no risk for the credit cardholder as long as they observe their obligation to exercise due diligence.