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Contactless Credit Card Advantages
Credit card companies are claiming the following advantages for contactless credit cards:
One additional fact that is known about contactless cards is definitely an advantage for merchants - consumers may feel otherwise. In a 2004 study, the average number of transactions at a retail location rose by about one percent, and the average "spend" rose fifteen percent for all contactless credit card users. So, it appears that there is a correlation between ease of use and total spending. Consumers, take note!
To make a purchase, the card owner just waves his card over the RFID reader, waits for the acceptance indicator - and goes on his way. American Express, Visa and Mastercard have all agreed to waive the signature requirement for contactless credit card transactions under $25.
If you want to look at the numbers, here is where this technology is taking us in our need for speed (average transaction speeds):
Contactless cards make use of the most secure encryption standards practical with current technology. 128-bit and triple DES encryption make it nearly impossible for thieves to steal your data.
Instead, the RFID chip within the card creates a unique number for the transaction; if a criminal intercepted the number, it would be useless even if successfully decrypted.
Although this is just speculation, there are certainly other ways to secure the data on the card. For example, the RFID reader that sits on the merchant's counter may use some sort of special signal, or offer a special set of frequencies, that would be difficult for a thief with an off-the-shelf reader to duplicate.
Index of related articles:
What is RFID?
How RFID Works
How is RFID used inside a living body?
What can RFID be used for?
Is RFID Technology Secure and Private?
Are There Concerns About How RFID Will Be Used? (Update)
Next-Generation Uses of RFID?
What Are Zombie RFID Tags?
Problems With RFID
RFID Information Technology Articles
Advantages of RFID Versus Barcodes
RFID Glossary
Contactless Credit Card Advantages
Contactless Credit Card Disadvantages
