Visa shares security tips for using contactless payments

As Trinidad and Tobago moves closer to universally embracing contactless payments systems, VISA has issued a new advisory sharing the benefits of and providing security tips for the best and safest use of this technology.

Trinidad and Tobago moved another step closer to this goal when the Ministry of Digital Transformation (MDT) and NPCI International Payments Limited (NIPL) of India, signed an agreement on September 10, 2024, which makes T&T the first Caribbean country to adopt Unified Payments Interface (UPI) technology.  The Ministry said UPI technology provides the flexibility to transact from any bank account—from participating banks—using mobile phones, making it easier and more affordable for citizens to use digital payment systems.

In its latest advisory, Visa notes that contactless payments—tap-to-pay with a contactless card, mobile device, or wearable—are quickly becoming one of the most convenient, reliable, and secure ways to pay worldwide. Contactless payment technology enables a fast and convenient way to pay for daily purchases. It also offers a secure and reliable experience. Contactless transactions are protected with EMV® chip security technology and tokenization, which have already proven to drastically reduce counterfeit fraud.

According to Visa, in recent years, this technology has gained wide acceptance among Visa users. During the April-June quarter of this year, tap-to-pay (known as contactless payment technology) grew 4% compared to last year, reaching 80% of face-to-face transactions globally, excluding the United States (U.S.).

Visa reports that in the U.S., it already exceeds 50%, and 30 U.S. cities have a penetration rate above 60%.  

Meanwhile, in Latin America and the Caribbean, the penetration of contactless payment use grew to 66%, as consumers have chosen to use this solution and have found it efficient and convenient when paying at local merchants.”

And in markets with emerging adoption of contactless payments, Trinidad and Tobago shows progress with 55% penetration, and Jamaica with 50%, as Jorge Salum, County Manager of Visa Trinidad & Tobago, explains.

“Contactless payment credentials have set a new path in technological and financial innovation. They are paving the way for other innovations that will make the consumer experience safe, simple, convenient, and frictionless,” Salum said.

He noted: “The adoption of contactless payments by consumers worldwide, and particularly in Latin America and the Caribbean, serves as a boost to continue working collaboratively with other participants in the payment ecosystem to develop solutions and applications that bring benefits, innovation, and security in paying or receiving payments for both individuals and businesses.”

A customer carrying out a contactless payment transaction.
[Image courtesy Visa Trinidad and Tobago.

Visa’s safety and security advice for contactless payments

When using contactless payments, it is important to consider:

·    ●   The consumer must ensure their card or device is enabled for contactless payments.

·    ●   When making a purchase, the consumer only needs to tap their contactless-enabled device or card to the payment terminal.

·    ●   The point of sale emits a visual or audible signal indicating that the transaction has been sent to the card issuer’s bank for approval.

·    ●   Visa security risk analyses are applied to verify the transaction.

·    ●   The issuer’s bank response returns, indicating whether the purchase can proceed.

The contactless card or contactless-enabled device is secure for several reasons:

·    ●   Each transaction is accompanied by a unique code that securely protects cardholder payment information.

·    ●   Contactless technology requires the merchant to initiate the payment first, and the contactless card or contactless-enabled device must be held in close proximity (2.5-5 cm) to the terminal for the transaction to occur.

·    ●   Contactless transactions are reliable and secure, in the rare event of an unintended transaction, cardholders have multiple ways to contact their issuing bank to initiate a refund request.

·    ●   Additionally, various financial institutions offer instant alerts about transactions made with their credentials, and cardholders have channels to contact their issuers in case there are unauthorized transactions in their statements.

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