With contactless credit card transactions emerging as the most favourable payment method, inconsiderate of its easy-to-use capability, it holds a tight security system, where the payment is processed only post the OTP verification.
FREMONT, CA: Contactless credit cards have gained increased attention in recent years, especially as part of a multidimensional transition towards global digitisation. This, in turn, has raised concerns regarding the working module of these credit cards and the technologies that are widely deployed in the process.
Generally, contactless credit cards contain a small embedded chip that emits electromagnetic waves. Placing these cards within a few inches of the contactless-enabled payment terminal critically transfers the payment information in no time, eliminating the dire need to bring the card into contact. The technique is referred to as tap-to-pay, requiring the critical placement of a card inside the payment terminal to make successful payments. Meanwhile, the process may extend for a second or two, requiring an uninterrupted transaction to complete successfully. The concluding process is indicated by displaying a green checkmark, flashing a green light, and passing a beeping signal at the payment terminal.
The working pattern of contactless credit cards is highly sensitive, requiring distinct attention and consideration. For instance, similar to the chips inserted in credit cards, a contactless credit card chip creates a one-time code critical for individual transactions, accompanying the payment information. Hence, tapping the "Pay" option transmits both the code and account number of individuals in the payment process, preserving details like the individual's name, billing address, and card verification code. It prevents the risk of conducting contactless payment transactions with a lack of a card and the required particulars, inconsiderate of obtaining payment information via fraudulent processes.
As a result, anyone aiming to complete the transaction without the primary details ought to undergo a series of procedures. That is, say a thief aims to make contactless transactions illegally to steal money. Generating the one-time code or password (OTP) to complete the transaction process is highly impossible, requiring the need to crack the complex algorithm that a bank uses in generating the OTP.
The one-time code pattern doubles the security system in contactless credit card transactions, much greater than a mere magnetic stripe technology, where the personal information of an individual can likely be captured by a skimming device. Hackers obtain the particulars on an acute note and deploy them using a duplicate magnetic stripe, thereby carrying out fraudulent transactions. Wherein, opting for contactless payment transactions aids in eliminating the risks of duplicate skimming stripes while carrying out the transaction much more aware to the cardholder by sharing the OTP. The payment process attains completion after sharing the one-time code, due to which the card, even though stolen, is impossible to be manhandled by other people other than the cardholder.
