30 Aug 2007


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Public reject “contactless” cards

Source : Bank Machine
A new independent YOUGOV survey released today shows 70% of the public believe that the new “contactless” debit card will increase the likelihood of fraud, with only 15% stating that they were “very likely” to use their card for transactions under £10.

The new contactless card, to be used initially for transactions under £10, need only to be waved in front of a terminal with no requirement to use a secure Personal Identification Number [PIN]. The Card “waver” is likely to be asked only every 10-15 transactions to enter their PIN to verify they are the lawful user of the card.

Ron Delnevo, managing director of Bank Machine sees several problems with this untried payment system. “So far they have run tests in places like bank staff canteens, very sanitised and safe environments”, notes Delnevo. “In the real world, there are a number of serious issues.”

One of the prime concerns raised in relation to this new unsecured payment method is the fact that thousands of criminals will know that every wallet and purse in the country contains cards that can be used many times without any security checks.

“Sadly, we live in a society where thieves are prepared to carry out violent attacks to obtain items of small value“ comments Delnevo: “the Card Issuers know this full well, yet have come up with a scheme in relation to contactless cards that allows every thief access to £100 to £150, with no security in place other than the individuals ability to resist attack. How can that be sensible?”

Security concerns will of course be multiplied as the amount allowed to be spent without use of a PIN increases. Card Issuers would undoubtedly like to see the amount available to be spent per unsecured transaction raised, with current speculation surrounding a £75 limit.

Debbie Smyth, Bank Machines operations director says: “Following hot on the heels of the banking industry's huge efforts to reduce fraud by introducing chip and pin, it is quite laughable that banks could now contemplate letting 10 to 15 £75 purchases go through without any security checks. Those same banks complain about the risks associated with the £50 Cheque Guarantee Scheme, where at least an attempt is made to verify a signature, yet would be prepared to see £1000 plus spent without so much as a PIN number being used. That dripping sound we can all hear is criminals salivating!!”

Worryingly, these new contactless cards are not currently planned to be a separate card that the British public can choose not to have: Banks are simply planning to issue a revised version of existing Debit Cards. About 70 million cards are likely to be enabled for contactless use, with individuals forced to accept the security risks despite the fact that a YOUGOV survey has shown that 40% would rather have the opportunity to deactivate the card.
Ron Delnevo is quite clear on this issue: “The Government should insist that contactless cards, if issued at all, are separate from all other cards, so that the British Public can opt not to carry them if they so choose.”

The matter of who will be accountable for the loss of a card is also an issue that must be addressed. Will parents be responsible if their children 'borrow' their card? Will there be prosecutions against children who have taken these cards to buy sweets? In the same survey out today, 72% of people polled believe that the card will make it easier for children to purchase items using a card without permission.

It is clear we are once again being forced, without a choice, down the “Plastic Road” that Card Issuers find so profitable, and that has lead to consumer debt in the UK spiralling upwards in recent years.

Says Ron Delnevo, Managing Director of Bank Machine: “The contactless card poses so many drawbacks for the public that only 15% say they want to use it. There can therefore be only one motive behind this new “wheeze” – rather than being about customer service, it's simply another manoeuvre by the banks to get rid of the cash that they so hate. I find it ironic that so many people fought to keep our British Pound when it was threatened by the introduction of the Euro, yet we have yet to wake up to this obvious ploy to deprive our citizens of the right to use the cash – and £s - that they prefer”.

A survey release earlier this year, commissioned by Bank Machine and conducted by independent research firm YOUGOV, has revealed once again that that the British public prefers to pay by cash. The independent results, which questioned over 2,000 participants, concluded that 75% of the British public prefer to use cash and are 'not happy' with the thought of the UK becoming a 'cashless society'.

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Anonymous	05 Sep 2007 13:37:41
Agreed. And even if, for the time being, we can choose not to carry these cards, this surely increases the chance of being mugged. Why work for a living, when you can be a *anker. Bring back the gold standard!