Tue 2 Oct 2007

I’ve recieved a number of new credit cards in the last few months. Some I applied for. Others were replacement cards. However almost all of them come with RFID technology.
While each of the major credit card companies have called the tap initiated payment something different, the implementation and technology behind each is nearly identical. For those who haven’t gotten around to tapping their purchases, all these programs allow you to make transactions for under $25 by a mere motion of the card near a sensor at the cash register. No signature is required. The card never has to leave your control. While initially it might seem this is less secure transaction, in reality it’s probably more secure. Even when cashiers check signatures, cashiers are hardly equipped to discern a credible signature from a fake.
I’ve only become a recent user of this technology because my new goal of spending $15,000 on my credit card in the next 6 months. In the past I tended to pay in cash small transactions that this technology is geared towards. Transactions such as: fast food, coffee, or a bag of chips at the 7-11. However, now that I’m using my credit card for every transaction I can make on credit card, I’ve tapped my card over 4 times in the last week. I think it’s great. It’s easy and It’s convenient. I don’t even have to remove my car from my wallet. The fact that I don’t need to take my card out means one less chance for me to lose my card as I have a tendency to lose things.
Of course some credit card opponents feel that this technology gives consumers just another length of rope to hang themselves. I don’t disagree. People who can’t control their credit card spending behavior need to avoid tapping, but they should also avoid using credit cards in general. Tapping is even more effortless than signing. When I tap, I don’t feel like I’ve engaged in any transaction. For someone who is prone to spending because credit card spending doesn’t feel like using “real money”, tapping a transaction feels even less real. However, for those who are disciplined credit card users, this RFID technology is convenient and saves time. While the time saving for any individual on any given transaction is only a 15-40 seconds, the potential efficiency gains to be made in lines can be quite substantial. I buy that Visa commercial showing how paying in cash (or signing a receipt) can slow down a smoothly operating line.
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October 2nd, 2007 at 6:49 pm
That’s pretty cool! I wish my debit card did that.
October 3rd, 2007 at 4:21 am
Your debit card might, and if not I bet your bank would give you a new card with the feature. Citibank sent me a new debit card and it features payPass. I’ve used it once.
October 3rd, 2007 at 8:27 am
What would happen if you have multiple tap cards in your wallet and you tapped your wallet instead of taking out the card? Is there a way to place the card of choice in a dominant location?
October 3rd, 2007 at 5:37 pm
There are some thieves who have mastered the ability to steal the RFID signal from cards just by putting a transmitter close to the card. This may be a problem if you live in a crowded area. You should be able to shield your card with a special protective sleeve, or some tin foil if you are worried about this.
I don’t have one of these cards yet, but I don’t really feel the need for it. I do charge almost everything I can though. I like the cash back rewards.
October 4th, 2007 at 7:01 pm
SavingDiva, that’s a great point. I haven’t thought about it since I only actually carry one credit card that has the feature.
Patrick, I think that such transactions are limited to $25 helps, but it definitely could be a problem. Haven’t had any no so far myself.