Tap to Pay credit cards

[YoungSaver]

I have received two new credit cards this month (one new and one replacement) and both have tap to pay functionality. I've only used my phone to pay twice in my life, but this new tap card is great. Much faster than inserting the chip.

Are there any downsides to tapping?
Is tapping used in Europe or other parts of the world?
Does it basically work exactly how your phone works, using NFC?
Can I tap my card wherever Apple/Samsung/Google Pay is accepted?

I searched and did not find this topic on the ER website.

 

[YoungSaver]

Looks like

1: No downsides compared to swiping or dipping.
2: Yes in a few countries, Europe by 2020.
3: RFID
4: Yes

https://www.creditcards.com/credit-card-news/contactless-tap-and-go-cards-us-market.php
https://www.creditkarma.com/credit-cards/i/contactless-payment-fad-or-future/

I think these tap to pay cards are great. I don't have to unlock my phone and open an app. It's super fast. And tokenization is nice and secure.

 

[braumeister]

I use my phone (Apple Pay) everywhere I can. In Europe I see many people tapping a card at the same terminals, as it's more common there than in the US.

 

[gerntz]

Surely you have to enter a PIN, right? Otherwise, anyone could use your card, right?

 

[gerntz]

Also, you do you know if your card is tap?

 

[Bir48die]

I use my phone (Apple Pay) everywhere I can. In Europe I see many people tapping a card at the same terminals, as it's more common there than in the US.

+1. On my trip this Spring to Europe my BIL set me up on Apple Pay and everyone took it. There were stores that limited the amount you could pay so had to change to a conventional CC

 

[Alan]

Contactless cards have been in use in England for quite a few years, and in Belgium and France since 2016 from personal experience. We expect to use our contactless cards on the Paris Metro in November

There is a max limit of £30 per transaction on my UK cards and $50 on my US cards.

You may have to use your PIN every now and then, with our UK bank it is after about 20 contactless transactions.

https://www.moneysupermarket.com/mo...-you-need-to-know-about-contactless-payments/

 

[Alan]

Surely you have to enter a PIN, right? Otherwise, anyone could use your card, right?

No PIN, which is why pay by phone or watch is better as it does use effectively the PIN.

Lose your card and it can be used by anyone until you report it. Just like a regular signature card can be used by anyone. Limit is $50 per transaction though.

 

[Alan]

Also, you do you know if your card is tap?

Contactless cards have the little WiFi symbol on them.

 

[Music Lover]

Surely you have to enter a PIN, right? Otherwise, anyone could use your card, right?

Usually with a new card you have to use a PIN the first time only then can tap after that. So, yes anyone can use your card after the initial use. But most tap purchases are limited to $100...any more than that requires a PIN.

For example, I've often used my GF's card (with her permission of course) to buy something rather than both of us make the trip to the store. The person at the till never seems to care that two different cards are being used.

 

[braumeister]

There is a max limit of £30 per transaction on my UK cards and $50 on my US cards.

I suspect that will increase before long.

On my trip last month I used Apple Pay in my phone for a €120 purchase, which is the largest one I've done. No problem, it went right through as usual.

 

[6miths]

We have had tap cards in Canada for several years. Only a couple of hold out business that I am aware of, Walmart and Home Depot most notably. As Alan says, if one were to lose card then it could be used for small transactions until suspended by you remotely or reported (this would be covered by CC company). Most businesses here are $100 but Costco is now up to $400 but they have your picture on the card and are very consistent in making sure you are the person using card. Down side is that each card is unique so if you lose card, the new one you get has a different 16-digit number so all autopays need to be reset. And you can't have two copies of your card. Each individual on the account has a unique number. Tapping and ApplePay are very convenient.

 

[Alan]

I suspect that will increase before long.

On my trip last month I used Apple Pay in my phone for a €120 purchase, which is the largest one I've done. No problem, it went right through as usual.

Apple Pay is different since you enter a code to pay, whether that code be your iPhone PIN, your fingerprint or your Face ID. With my Apple Watch I can pay as long as it is still on my wrist and has been unlocked after I last put it on. I have paid bills well over a $1k with Apple Pay. Earlier this year our plumber replaced our boiler and 4 radiators, he handed me a terminal to pay and I just did it contactless with Apple Pay

 

[Chuckanut]

I was traveling abroad earlier this year and needed to buy transit passes for the city. No matter what I did the machine in the metro station would not accept my chipped card when I inserted it in the slot. Then I noticed the little Tap icon on the machine. Sure enough, one tap and the transaction went through.

 

[YoungSaver]

No PIN, which is why pay by phone or watch is better as it does use effectively the PIN.

Lose your card and it can be used by anyone until you report it. Just like a regular signature card can be used by anyone. Limit is $50 per transaction though.

Thanks for pointing this out!

But if I lost my old credit card, anybody could use it anyways.

 

[Alan]

Thanks for pointing this out!

But if I lost my old credit card, anybody could use it anyways.

Exactly. At least the contactless card has a limited transaction amount and is covered in the same way for fraudulent use. In 2013 my US credit card was cloned and in 2 days used in stores to a total of $23k.

 

[gerntz]

Usually with a new card you have to use a PIN the first time only then can tap after that. So, yes anyone can use your card after the initial use. But most tap purchases are limited to $100...any more than that requires a PIN.

Thanks. That's comforting. So they can just make 20, $100 purchases.

 

[6miths]

I was traveling abroad earlier this year and needed to buy transit passes for the city. No matter what I did the machine in the metro station would not accept my chipped card when I inserted it in the slot. Then I noticed the little Tap icon on the machine. Sure enough, one tap and the transaction went through.

This is one of the best features. At the gas station I just tap and lift the nozzle and touch the gas type and away I go. No fiddling with card in slot or PIN in inclement weather! Don't even have to take my mittens off!

 

[mpeirce]

...Most businesses here are $100 but Costco is now up to $400...

I don't think $400 is a hard limit. I know we've charged more than $400 at Costco and it was using the Costco Visa. And the card WAS tapped, not inserted.

 

[valsdad]

Wow. I could save tens of seconds. Whatever will I do with my new spare time?

 

[braumeister]

I don't think $400 is a hard limit. I know we've charged more than $400 at Costco and it was using the Costco Visa. And the card WAS tapped, not inserted.

Every credit card network sets its own limit. I've read that MasterCard has the lowest, at $100.

 

[HillCountry]

Car parks in Ireland only accept contactless payment. Fortunately Costco visa support this.

 

[Alan]

Wow. I could save tens of seconds. Whatever will I do with my new spare time?

It also lessens the chance of losing your card since you don’t have the risk of leaving it in the machine after entering your pin or signing a bit of paper. You don’t even need to take the card out of your wallet, just place it against the reader at the till. It is great for use on buses in the UK and Europe as mentioned above, really speeds up the flow of passengers getting on

 

[audreyh1]

I use my watch for ApplePay when I can, including at Costco. Having the device on my wrist already makes it super convenient.

Before Costco accepted ApplePay I used tap to pay since their card supports it.

I have no idea whether any of my other cards do tap to pay.

 

[audreyh1]

Surely you have to enter a PIN, right? Otherwise, anyone could use your card, right?

No, nada.

Yes, if someone grabs your card, they can use it. No different from today for most credit cards that don’t support PIN.

Another reason why I prefer ApplePay. But as others mention there is usually a purchase limit.