Even as the government tries to push more Indians to go cashless, a video tweeted by business tycoon Anand Mahindra has left social media users worried about the credit and debit cards as digital mode of payments.
The video shows a man secretly tapping the pocket of another man and completing a transaction. The man from whose pocket the card is ‘tapped’ stands unaware of what has happened. The location of the video could not be traced but is enough to draw our attention towards the issue.
The ‘victim’ of the fraud transaction is said to have a ‘paypass’ card in his pocket. The man shooting the act asks people to be ‘beware’ of such a fraud. Looking at the video it can be concluded that it has not been shot in India.
So, is it possible that a transaction is possible with a simple scan of a card from a little distance. India Today checked this.
From our investigation we found that using contact-less cards, payments can be made by tapping without being prompted for OTP/PIN.
But is the trick shown in video really possible?
TR Ramachandran, country head, Visa South Asia in his reply to Mahindra’s tweet said, “It can’t really happen. Such a trick would be liable for prosecution.”
Ramachandran also attached a video in his tweet, separating myths from reality of the contact-less cards.
The video clearly shows a man trying to scan a customer’s card from a distance, making several unsuccessful attempts.
Here are some quick facts about contact-less cards:
So what are contact-less cards?
To pay using these cards, one simply needs to place the card over the contact-less reader and the transaction will be complete.
Are contact-less cards different from normal cards?
No. Your contact-less card may still be inserted or swiped at card terminals for payment like a regular card. This is an add-on feature.
Is signature or PIN required to complete transaction?
No signature or pin is required for transactions up to Rs 2000.
How do contact-less cards work?
1. Look for contact-less symbol at point of purchase.
2. To pay place your card over the reader at close range.
What should be the gap between contact-less cards and card reader?
The card reader (POS terminal) and the contact-less card should not be more than 4 cm away.
Are contact-less cards available in India?
Yes. All major banks provide this service. ICICI claims to be the first bank to have started this service in the year 2015.
Can anyone purchase this machine where contact-less cards work?
No. Only merchants registered with the bank can be issued a card reader (POS machine). The bank maintains database of all merchants and also charges a fee from them.
What is the technology behind contact-less cards?
These cards use Radio Frequency technology (RF) similar to an RFID tag. The embedded chip and antenna in card enable consumers to complete transactions by tapping the card.
What is the transaction limit that is set?
The maximum transaction amount that can be processed with contact-less is Rs 2000. This cap is set by the Reserve Bank of India. Though transactions limits are different for all countries.
When India Today’s Fact Check team tried to use a contact-less card placed in a wallet the transaction was not successful.
India Today investigation found that though motive of the person who posted the video is to educate card users, the claim made in the viral video is technically not possible.
News credit : Indiatoday