MasterCard Busts 10 Payment Myths

By / Published August 6, 2015 | 7:59 am



mastercard

Sometimes, a convenient payment solution to make your life easier might seem too good to be true, but with the rise of technology it really is possible. For example, electronic payment developments such as contactless cards and digital wallets seem to be suspiciously simple, too simple in fact that misconceptions or myths are created around payment safety and security.

There are universal truths about the technology and safety behind electronic payments, in contrast to everyday misconceptions. MasterCard has traced some common myths about cashless payment solutions, and has ‘busted’ them with the truth, to help provide peace of mind.

  • Myth: Card information breaches are rampant and out of control.

Truth: Efforts by the payments technology industry to enhance the security of payment systems has delivered substantial falls in card breaches. While payments have never been safer, criminals have never been smarter. Companies globally are collaborating to address key issues on safety and security.  Electronic payments remain one of the safest ways to pay, more so than cash.

  • Myth: Cash is a secure, anonymous solution.

Truth: Cash is the least secure form of payment because if stolen, it can be used by anyone without any need for authentication.

  • Myth: Chip and PIN is a security silver bullet.

Truth: There is no silver bullet to completely stop security breaches. However, technology on a payment card has multiple layers of security that help detect and mitigate threats. Chip and PIN technology is just one example of a security layer that helps fight persistent security threats.

  • Myth: Security is still the biggest concern that prevents consumers from shopping online.

Truth: Shopping online can be a daunting experience for a first-time user, but there are technology advancements such as MasterCard SecureCode that allow online retailers to add another layer of security for transactions by asking the consumer to enter a password. That password is only known by the consumer. 

  • Myth: When shopping online, the more information I enter, the more secure my purchase.

Truth: It’s preferable for online retailers to authenticate an online shopper with the minimum information possible. Ideally, they will request the three digit CVC or CVV number on the back of your card to complete a payment. Alternatively, adopting a digital wallet like MasterPass takes the hassle out of repeatedly adding your payment and shipping information, with the benefit of having all the security of your payment card included. 

  • Myth: Thieves can scan contactless cards through handbags or from a distance, to steal your data.

Truth: Thanks to a microchip with advanced encryption technology that’s embedded inside the card, it is extremely difficult to copy a contactless chip and create a functioning counterfeit version. This is because only a minimal amount of information would be accessible – and not the same information that would be used to complete a transactions at a point of sale. 

  • Myth: By intercepting contactless data, thieves may prepare a fake contactless card and then use it to make transactions.

Truth: Contactless cards only work in very close proximity to the point of sale and only give a minimal amount of information from an account holder. In such situations it is impossible to clone a card. 

  • Myth: Fraudsters can electronically pickpocket your card/device information for identity theft.

Truth: There is a clear distinction between identity theft, where a consumer’s identity is assumed by another individual for criminal purposes, and payment card fraud, where a consumer’s card information is compromised and used to make unauthorised purchases. As contactless cards only send a minimal amount of information, there is very little risk of actual identity theft. 

  • Myth: My spending data can be shared.

Truth: All spending data is anonymized and aggregated and cannot be traced back to individuals. If you’re getting cold-calls from unknown salespeople, rest assured that they did not get your details from a technology payment provider. 

  • Myth: Prepaid cards are not secure because if lost or stolen you lose the money on the card.

Truth: If you’re worried about card security breaches and identity theft, a prepaid card could be a good option as they’re not linked to your bank account and are PIN-protected. You can also use prepaid cards to buy goods online, safe in the knowledge that a thief who manages to get hold of your prepaid card details could not run up a bill at your expense.

With these common myths ‘busted’, there’s no excuse for you to not adopt the latest payment innovations such as scanning a QR code to make an online purchase or using your contactless card to grab a coffee on the go.






More Articles From This Author








Trending Stories










Other Related Articles










SOKO DIRECTORY & FINANCIAL GUIDE



ARCHIVES

2024
  • January 2024 (238)
  • February 2024 (227)
  • March 2024 (190)
  • April 2024 (133)
  • May 2024 (82)
  • 2023
  • January 2023 (182)
  • February 2023 (203)
  • March 2023 (322)
  • April 2023 (298)
  • May 2023 (268)
  • June 2023 (214)
  • July 2023 (212)
  • August 2023 (257)
  • September 2023 (237)
  • October 2023 (266)
  • November 2023 (286)
  • December 2023 (178)
  • 2022
  • January 2022 (293)
  • February 2022 (329)
  • March 2022 (358)
  • April 2022 (292)
  • May 2022 (271)
  • June 2022 (232)
  • July 2022 (278)
  • August 2022 (253)
  • September 2022 (246)
  • October 2022 (196)
  • November 2022 (232)
  • December 2022 (167)
  • 2021
  • January 2021 (182)
  • February 2021 (227)
  • March 2021 (325)
  • April 2021 (259)
  • May 2021 (285)
  • June 2021 (272)
  • July 2021 (277)
  • August 2021 (232)
  • September 2021 (271)
  • October 2021 (305)
  • November 2021 (364)
  • December 2021 (249)
  • 2020
  • January 2020 (272)
  • February 2020 (310)
  • March 2020 (390)
  • April 2020 (321)
  • May 2020 (335)
  • June 2020 (327)
  • July 2020 (333)
  • August 2020 (276)
  • September 2020 (214)
  • October 2020 (233)
  • November 2020 (242)
  • December 2020 (187)
  • 2019
  • January 2019 (251)
  • February 2019 (215)
  • March 2019 (283)
  • April 2019 (254)
  • May 2019 (269)
  • June 2019 (249)
  • July 2019 (335)
  • August 2019 (293)
  • September 2019 (306)
  • October 2019 (313)
  • November 2019 (362)
  • December 2019 (318)
  • 2018
  • January 2018 (291)
  • February 2018 (213)
  • March 2018 (275)
  • April 2018 (223)
  • May 2018 (235)
  • June 2018 (176)
  • July 2018 (256)
  • August 2018 (247)
  • September 2018 (255)
  • October 2018 (282)
  • November 2018 (282)
  • December 2018 (184)
  • 2017
  • January 2017 (183)
  • February 2017 (194)
  • March 2017 (207)
  • April 2017 (104)
  • May 2017 (169)
  • June 2017 (205)
  • July 2017 (189)
  • August 2017 (195)
  • September 2017 (186)
  • October 2017 (235)
  • November 2017 (253)
  • December 2017 (266)
  • 2016
  • January 2016 (164)
  • February 2016 (165)
  • March 2016 (189)
  • April 2016 (143)
  • May 2016 (245)
  • June 2016 (182)
  • July 2016 (271)
  • August 2016 (247)
  • September 2016 (233)
  • October 2016 (191)
  • November 2016 (243)
  • December 2016 (153)
  • 2015
  • January 2015 (1)
  • February 2015 (4)
  • March 2015 (164)
  • April 2015 (107)
  • May 2015 (116)
  • June 2015 (119)
  • July 2015 (145)
  • August 2015 (157)
  • September 2015 (186)
  • October 2015 (169)
  • November 2015 (173)
  • December 2015 (205)
  • 2014
  • March 2014 (2)
  • 2013
  • March 2013 (10)
  • June 2013 (1)
  • 2012
  • March 2012 (7)
  • April 2012 (15)
  • May 2012 (1)
  • July 2012 (1)
  • August 2012 (4)
  • October 2012 (2)
  • November 2012 (2)
  • December 2012 (1)
  • 2011
    2010
    2009
    2008
    2007
    2006
    2005
    2004
    2003
    2002
    2001
    2000
    1999
    1998
    1997
    1996
    1995
    1994
    1993
    1992
    1991
    1990
    1989
    1988
    1987
    1986
    1985
    1984
    1983
    1982
    1981
    1980
    1979
    1978
    1977
    1976
    1975
    1974
    1973
    1972
    1971
    1970
    1969
    1968
    1967
    1966
    1965
    1964
    1963
    1962
    1961
    1960
    1959
    1958
    1957
    1956
    1955
    1954
    1953
    1952
    1951
    1950