[LINK] contactless credit cards
stephen at melbpc.org.au
stephen at melbpc.org.au
Tue Nov 9 15:51:15 AEDT 2010
McDonalds contactless card rollout to lower skimming risk
By Liz Tay on Nov 9, 2010 http://www.itnews.com.au/News
McDonald's Australia will switch on contactless credit card technology
this month that enables it to charge cards from up to five centimetres
The technology is a feature of Ingenico-Westpac terminals already in use
at 816 McDonald's outlets nationwide.
When switched on at the end of this month, it will enable customers to
charge up to $100 to Visa payWave or MasterCard PayPass cards without
swiping, signatures or PINs.
A Visa spokesman said the contactless payment card technology was based
on the EMV standard, and used a secure, embedded microchip and antenna to
communicate with card readers.
Card readers 'powered up' a card via radio frequency for each
transaction, and transmitted a unique, encrypted code in a process known
as 'dynamic card authentication'.
Transactions would then be handled in the same way as traditional Visa
transactions, with the same layers of security and theft protection
Should a customer inadvertently 'wave' two separate, contactless cards at
the same time, only the card which the reader picked up first would be
charged, the spokesman said.
The spokesman expected Visa payWave cards to be an "unattractive target
for criminals" as only smaller transactions would be processed via
Visa payWave cards also would be less susceptible to counterfeit card
fraud, the spokesman said, because the EMV chip technology was "virtually
impossible to duplicate" and the card would not need to be passed to
sales staff during contactless transactions.
And it would be "very difficult" for criminals to make unauthorised
transactions because readers were registered to approved merchants so any
fraudulent claims would have to be routed through the merchant's
Last year, Westpac was forced to block more than 10,000 debit and credit
cards after criminals stole bank details from compromised EFTPOS machines
in McDonald's outlets.
McDonald's CTO Henry Shiner said its plan to implement contactless
payment technology pre-dated the card skimming incident.
"The planning and development of our cashless solution has been in
progress for a substantial length of time and pre-dates the events that
took place last year," he said.
"This is just one more efficiency that we have introduced to improve the
customer experience ... Not only does this offer our customers more
flexibility in the way they pay, it also provides them with a highly
secure payment method."
Visa expected close to 20,000 merchant outlets, including IGA, Red
Rooster, 7-Eleven and Bunnings to have deployed contactless payment
Visa payWave cards were available from Macquarie Bank, ANZ and NAB. The
Commonwealth Bank, Woolworths and Jetstar offered MasterCard Paypass
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