Security concern with PayPass/PayWave?

dsafew on 19/07/2014 - 23:10

Hi all,

Not sure if others have encountered the same concerns with PayPass/PayWave so here goes.

Went to a restaurant in Sydney and as usual you ask for the bill at the end. I have an entertainment book voucher for 25% discount so I enclosed the voucher along with my credit card to pay for the bill. When the bill came back, I expect to sign the transaction (as I usually check my updated bill first) only to find that the restaurant has already charged my credit card using PayPass/PayWave.

My question is: Is it legal for restaurants or any merchants to charge you via PayPass/PayWave without your notification? Or is merely placing your credit card on the bill allows the restaurant to authorise the payment without secondary security check (signature or pin)?

I understand that PayPass/PayWave saves a lot of time as no authorisation is required under $100 but it takes away the security of you being able to check your transaction before payment. Technically you have the right to personally authorise all payment on your credit card (signature or pin) yes?

Cheers,

Financial

Comments

  • retiredfeline on 19/07/2014 - 23:16
    +8

    Never let the card out of your hands. If they don't have a portable terminal, go to the counter and wave it there. Otherwise you are tempting them to commit fraud. Would you tell them the PIN (required from August) if they didn't have a portable terminal? Of course not.

    • dsafew on 20/07/2014 - 22:45

      That's really good advice, I almost forgot that signature is no longer accepted starting August. I guess old habits die hard and I'm so used to the service of not having to get up to pay for my bill.
      Cheers for that

  • Davo1111 on 19/07/2014 - 23:20
    +4

    When i worked in retail, the transaction had already gone through before the "signature" reciept came out.

    This was a well known store, one of the big 2, sold liquor

    • sigh on 20/07/2014 - 01:59
      +1

      Nearly all retail outlets have been like this for years, as soon as you press ok to sign for instead of using a pin the transaction is processed regardless if signiture doesn't match. Only the older systems at smaller operators where they have to manually enter the transaction amount do they actually still have to approve the the signiture is correct and it just may cancel the transaction if the operator says no.
      ( from experience and working several retail jobs and even installing eftpos machines at one, tightarses didn't want to pay for a tech to install)

      • Franconian on 20/07/2014 - 14:02

        Well, the transaction is authorised/processed, but if it is not signed or pined and disputed with your bank the retailer has no chance at all.

    • dsafew on 20/07/2014 - 22:42

      I have the same idea as Franconian. If I didn't authorise the purchase (signature is still in effect until end of this month) then I can easily open a dispute with the Bank. Not sure how PayPass/PayWave would work for this case though.

  • na8an on 20/07/2014 - 05:08
    +1

    I work in retail, I find it very often people don't bother if we use without their consent that maybe because transaction happens in clear sight. sometimes few of them brag use of paywave, about the transaction takes about 2-3 days to debit from account and they miscalculate their saving while spending on other places.

    I mostly do Paywave for multiple reasons

    • People often don't remember what kind of card they are using to pay, as we have to choose SAV, CHQ or CREDIT
    • To Serve other customer's on Q faster
    • Forget PIN at times
    • Just don't bother attitude by customer
    • Hassle free
    • janeymac on 24/07/2014 - 10:32

      The 2-3 days it takes to clear funds is why I don't use pay pass. I heard Commbank clears the transaction immediately, so I'm actually considering moving my accounts over. Just such a hassle!

  • YouLIKEyouLICK on 20/07/2014 - 12:03
    +1

    I love using my tap and go card, not too concerned as it's only under $100 per transaction, as mention above: always tap it yourself and commbank app you can disable it instantly if lost or misused.

    • dsafew on 20/07/2014 - 22:46

      $100 is a significant amount, especially if they can multi-tap while having your card. But yes, agree to hands on card at all time from now on

  • [Deactivated] on 20/07/2014 - 14:32

    So, did they process Entertainment book voucher properly?

    Very soon you won't be able to use signature as an authorisation method so the incident you described may happen a lot more in the future.

    • dsafew on 20/07/2014 - 22:43
      +1

      Yes they did process it properly. It was more of a concern of security than anything. But I guess greenpossum is right in saying don't let your card leave your hand. That is the safest way to go

Login or Join to leave a comment
Login Join