What are...

Contactless Payments

Contactless is a phrase typically used to describe transactions carried out on modern credit and debit cards by touching the card to the card reader, without the need for the customer to enter a PIN. The concept also applies to the use of smartphones and other smart devices for payment such as Apple Pay or Google Pay.

Do Contactless transactions show on my Credit Report?

Individual transactions that you make on a credit card do not appear on your Credit Report, but your total and monthly balances on the accounts themselves will show, providing your lender is sharing the account information with the Credit Reference Agencies.

You can check your credit account information by viewing your Credit Report. checkmyfile gathers your data from Equifax, Experian, TransUnion, and Crediva all onto the same, easy-to-use online report, making it quick and easy to find what you’re looking for.

If you haven’t already, you can try checkmyfile free for 30 days, then for just £14.99 per month. Cancel online at any time.

Are Contactless Card Payments Safe?

Due to the absence of PIN or signature verification, contactless purchases are typically limited to low value transactions. Despite this, contactless card payments are often interpreted as an easy target for fraudulent activity.

To minimise the potential risk, contactless payments can only be used for transactions totalling £45 or less within UK although the limit may differ overseas. If you wish to spend more than this a Chip and PIN payment will be required. The FCA is considering increasing the limit further, with the proportion of contactless transactions soaring in 2020, due in no small part to measures introduced to help reduce the spread of Covid-19.

How do contactless cards work?

The secure payments are typically made via Radio Frequency Identification (RFID) or Near Field Communication (NFC).

In contrast to mobile payments which can be made across a broad area, contactless card payments must be made in close physical proximity. The cashier needs to activate the terminal (the customer should be able to do this themselves at a self-service till) to reduce the risk of errors.

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