As if bankcard fraud is not bad enough a new "easy to cheat" card is released. No pin number is necessary to use cash resources on the card. Just tap it on an Eftpos and a green light comes on to show goods are paid for. Businesses may like this new system because purchases are quick, impulsive and transaction costs are lower. But what if someone gets hold of the card from a burglary. The account can be emptied without a pin or signature. Surely banks will refuse to refund money to the card owner. It is a way for banks to opt-out of their responsibilities.
Retailers can also be hit, apparently, because the card can be used with nothing in the bank account. New technology is the culprit. Magnetic strip is now seen as old fashioned. Solid state chips are now the go. Competition is beginning with PayWave and Payless trying to dominate the new market. Thankfully, transactions are limited to $100 at the moment.
Takeaway chains and corner stores are adopting the new system for quick purchases. Notably, Bunnings will soon be installing the technology. It has really caught on at the Commonwealth Bank with a quarter of terminal transactions being done with touch cards. Oddly, Coles and Woolworths aren't even considering it. Ms Bayer Rosman said it is safer than cash. This is not true - it is virtual cash! It will be small transactions now, unlimited transactions very soon. Her claims that banks will reimburse purchases consumers claim they didn't make is on very weak ground. Cancelling a card as soon as it is lost will gain them nothing: the account will be empty.
Let's face it purchases on bankcard are made purely on trust. When a firm has your card details it can charge you over and again for the same item. PayPal is the exception because the seller is not given details. But we trust PayPal, don't we? Can we trust our neighbors though? Time will tell. Banks are looking for a way out of not reimbursing consumers for card loss.
Retailers can also be hit, apparently, because the card can be used with nothing in the bank account. New technology is the culprit. Magnetic strip is now seen as old fashioned. Solid state chips are now the go. Competition is beginning with PayWave and Payless trying to dominate the new market. Thankfully, transactions are limited to $100 at the moment.
Takeaway chains and corner stores are adopting the new system for quick purchases. Notably, Bunnings will soon be installing the technology. It has really caught on at the Commonwealth Bank with a quarter of terminal transactions being done with touch cards. Oddly, Coles and Woolworths aren't even considering it. Ms Bayer Rosman said it is safer than cash. This is not true - it is virtual cash! It will be small transactions now, unlimited transactions very soon. Her claims that banks will reimburse purchases consumers claim they didn't make is on very weak ground. Cancelling a card as soon as it is lost will gain them nothing: the account will be empty.
Let's face it purchases on bankcard are made purely on trust. When a firm has your card details it can charge you over and again for the same item. PayPal is the exception because the seller is not given details. But we trust PayPal, don't we? Can we trust our neighbors though? Time will tell. Banks are looking for a way out of not reimbursing consumers for card loss.
