To tap or not to tap? That is the question. Dieterich Bank has answers.
The rise in convenience across all parts of our lives is not just a growing trend; it’s here to stay (and grow). We are connected with our Smartphones, can find information at the drop of a hat, organize our day with AI tools, and so much more.
The rise in tap-to-pay, also known as contactless payments, has been one of the fastest-growing technological innovations of our time. You can securely tap and go to make payments faster using your card, phone, or even a Smart Device. But how safe is it?
Dieterich Bank is here to help answer that question and much more, including making you feel even more secure when using tap-to-pay services like their Mobile Wallet service. Since the early 1900s, Dieterich Bank has been part of the South Central Illinois community and is a trusted financial partner for generations of customers.
Let’s break down the myths and facts about tap-to-pay versus other methods and show you why Dieterich Bank is the smart choice for quick and secure payments.
New Payment Technology That’s Here to Stay
As with any innovative technology, some people think it is just a fad that will quickly be replaced by something new a few years later. The fact is, forms of contactless payments have existed since 1995, when the prepaid travel card Upass in South Korea let passengers tap to use public transport. Since then, the technology has evolved with the creation of Europay, Mastercard, and Visa (EMV), which created a chip that became the standard for over a decade.
However, with advancements in technology and security, along with COVID-19, tap-to-pay has exploded and become the most popular method of payment. According to Forbes, many countries have a 90+% adoption rate for tap-to-pay, with the U.K. (93.4%), Australia (95%), and Singapore (97%). And the forecast for adoption and advancements in security means that tap-to-pay is here to stay.
What’s in a Name?
Chip. Tap-to-pay, Strips. These features seem to be on everyone’s debit or credit card these days, but what’s the real difference between them? Is having a chip the same as tap-to-pay? Which is more secure? Here are the facts:
Magnetic Strip or Swipe
- The oldest way to use cards is to read the data stored on your card when you swipe to complete a payment. Since the data never changes, it’s susceptible to skimming and other fraud methods.
- Security Score – Most Vulnerable
Chip Payments
- More common over the last couple of decades, the chip generates a unique code each time it is inserted into a reader for transactions. Dynamic encryption makes this more secure than a strip, and advances in security have helped stop theft, but they are not always foolproof.
- Security Score – Safe with some limitations
Tap-to-Pay (or Contactless/NFC)
- Using Near Field Communication (NFC), you simply tap your card or connected device to make a payment. Similar to chips, a one-time encryption is used with each transaction, but because you don’t physically touch the payment reader, you reduce the risk of scamming devices and stealing data.
- Security Score – safest way to pay
So, there you have it. A chip isn’t the same as tap-to-pay; strip payments are being phased out, and NFC offers the most secure payment option.
Don’t Believe the Myths
As with any new technology, myths can spread quickly and are often a response to the unknown. “I heard Sally’s niece had all her data stolen and her bank account drained because she stood too close to a payment reader that had that scammer thingy on it,” is just one example of a myth around tap-to-pay. So, before you wrap your phone, wallet, or purse in tinfoil (please don’t do that), let’s debunk some myths.
Your data can really be stolen from any distance, just like Sally’s niece!
False! Sally is fine, and you will be too. Because tap-to-pay uses short-range signals requiring you to be within centimeters to work, thieves can’t steal your payment info simply by standing near you.
Your payment data can easily be cloned
False! Each payment generates a unique, one-time code that doesn’t include all of your information, making it super difficult to clone because the code can never be used again.
Accidentally paying multiple times because you tapped more than once
False! Due to the close proximity requirements, along with additional safeguards on the backend, it’s not possible to accidentally pay multiple times.
Tap-to-Pay is less secure, so I don’t trust it
Super False! As we mentioned earlier, because a one-time token is generated and how NFC works (we’ll get into some more details in a moment), tap-to-pay is among the safest payment methods.
Don’t believe the myths or hype. Feel free to tap away and purchase safely and securely.
Know Your Safety Measures
Don’t rely on just technology security features to keep your data safe. You still need to consider some logical practices for any payment option and bank information. Fortunately, Dieterich Bank has a great blog that dives into Fraud & ID Theft Protection. Take a read and put these tips into practice.
What Exactly is NFC, and How Does it Work?
As we mentioned earlier, NFC stands for Near Field Communications and has been around longer than you think.
NFC is a subset of radio-frequency identification (RFID) that has been used for decades to scan items in grocery stores, check baggage on flights, and almost anytime something is scanned using RFID.
In the early 2000s, developers started using a lower radio frequency that enabled data to be transmitted in a short period of time at close range, stopping as soon as the transaction was complete. Drawing from chip technology, a one-time token could be created faster, and because proximity is key, an additional layer of protection was created.
Gain More Control of Your Accounts and Keep Data Safe
Sure, tap-to-pay is quick and easy, but it can also be integrated into many Smart devices and is part of Dieterich Bank’s Personal Banking features. Plus, with some commonsense tips, you can further protect your payment information.
- Activate your Dieterich Bank Mobile Wallet and Digital Banking features
- Connect Mobile Wallet to your Android, iPhone, or iWatch to integrate with Apple Pay, Google Pay, and Samsung Pay
- Instantly see transactions and keep on top of your budget anywhere, anytime
- Turn on transaction alerts to easily detect potential fraud for all forms of payment
- Always lock your phone after each transaction, and keep tap-to-pay cards in a secure wallet or cardholder
- Open a Dieterich Bank Credit Card with tap-to-pay technology for more flexible spending options
Come See How Dieterich Bank Can Help Optimize Easy and Secure Payments
Hopefully, any fears you might have about using tap-to-pay are gone now that you know more about how it works, security facts, and even a little history! Now it’s time to flex your payment options by opening a new Personalized Checking account with Digital Banking.
If you’re a new or current Dieterich Bank customer, remember to activate Mobile Wallet and connect your debit or credit cards to take advantage of tap-to-pay. Happy tapping!
