Are smartphone-based payment systems secure?
More products are being purchased both online and offline over the Christmas season, and paying for those products isn’t as straightforward as it once was.
Credit cards are still the safest option to make transactions, especially online, because they offer the highest safety and don’t affect your checking account balance the way a debit card can.
The disadvantage of using the same credit card everywhere is that it raises the risk of it being hacked and used for fraudulent purchases, which can be a major headache during the holiday season.
Keeping your credit card number safe
A tokenized purchasing system essentially eliminates the danger of your credit card being hacked by preventing retailers from really knowing your credit card number.
Instead of your real card number, smartphone-based payment systems utilize tokens with one-time use passwords that are transmitted to the merchant’s processing system.
Apple Pay, which is solely available on iOS devices, and Google Pay, which is available on both Android and iOS smartphones, are the two most popular systems for general retail.
Both need you to “tokenize” your real credit card number on their platforms in order for them to function as an intermediary between the merchant and your credit card provider when you use them.
At the petrol station, it’s a lot safer.
Because so many gas pumps still utilize standard magnetic card swipe readers, which make card skimming much easier, one of the most useful implementations of these tokenized payment systems is at the pump.
Because of the equipment expenditures connected with making a move, gas stations have been allowed a significantly longer time to comply with the new chipped EMV standard. Despite the fact that the current compliance date is April 2021, don’t anticipate all petrol stations to have chip readers by that time.
Most petrol pumps will include a sign enabling wireless payments near where you would typically swipe your card if you look attentively.
NFC stands for Near Field Communication.
To complete the transaction, smartphone-based payment systems often employ a wireless technology known as Near Field Communication, so be sure your device supports it.
NFC was first introduced by Apple with the iPhone 6 and has subsequently been featured in all Google Pixel phones and Samsung phones since 2015.
If you’re not sure if your smartphone has NFC, NFCW.com provides a thorough list of smartphones.
To make a transaction, all payment methods need validation, such as a PIN, facial/fingerprint recognition, or password, making them safer than most credit cards.
If you lose your wallet, all of your credit cards are instantly usable, and you must contact each card provider to have all of your cards turned off and replaced.
If your phone is lost, whoever discovers it will have to figure out your access code and guess your payment system PIN in order to make a transaction. You can also lock and track your smartphone’s position remotely and stop the payment system quickly from any computer in the world.