With the very latest in built in Chip and PIN technology, the MasterCard PayPass system is both technologically innovative and extremely easy to use. So, what is the new system and how does it work?
What is it?
Simply, PayPass is a contactless payment feature that allows cardholders to make payments by tapping their card at the point of sale terminal rather than using the more traditional ‘swipe’ method. The terminal then communicates the payment card details to the retailer’s terminal using short range radio wave technology. Moments later payment confirmation details are sent to the retailer’s terminal and the transaction proceeds as normal. Using this innovative system means that card members no longer have to let their cards leave their hands.
Does this mean I can no longer use the ‘swipe’ system?
No; at this time cards embedded with this technology also have a magnetic strip and signature system, so your card will still be accepted at 23 million locations around the globe. However, in an attempt to avoid fraudulent use of your card, or any chance of any identity theft taking place, MasterCard advise customers who can use this new technology to do so – but, at this time, it remains an alternative to the old system and not a replacement of it.
If it is only an alternative, why should you use it?
Although only an alternative to the older swipe system, the new system is designed to make transaction processing quicker and easier. The new system is also a more ‘secure’ method of paying with your credit card and dramatically helps to reduce fraud – as the card is always in your control and in your hands.
If the system is new, is it safe?
There’s always a concern when new technology is introduced that the system may be vulnerable to ‘glitches’. However, PayPass incorporates special technology that is specifically designed to prevent fraud and is therefore seen as being a much safer method of payment that the current swipe system.
Is there a maximum purchase value?
At this time, the system is aimed at customers who use their card for low-end purchases, such as a few items in the convenience store. It is not intended to be used with high-end purchases and if you are intending to purchase items in excess of $25, then it is recommended that you use the more traditional method of payment.
Am I still afforded all of the same MasterCard privileges and protections?
There is no difference is you are holding an old magnetic swipe card or one of the new PayPass cards, all of the protections regarding loss of card and fraudulent use apply, as do all of your membership rights and obligations.
In short, the new Chip and PIN technology with the MasterCard PayPass card is just one more step on the road to preventing credit card fraud in the future!
