Contactless payments have risen dramatically since the onset of the COVID-19 pandemic. Loss prevention specialist CB911 warns of a probable increase in fraud as wrongdoers master this technology.
A Sharp Increase In Contactless Payments
Business owners have seen a sharp increase in contactless payments as more consumers turn to tap-to-pay, mobile pay, and other e-commerce options in the wake of COVID-19. VISA has reported over 100% increase in these transactions from year to year.
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Credit card companies are responding by increasing the allowable limit for these contactless payments. These transaction limit increases have gotten the attention of criminals who seek to take advantage of credit card and chargeback fraud, causing major consequences for consumers and business owners.
Customers’ contagion concerns have caused a dramatic increase in the use of these charging methods.
- In the first quarter of 2020, Mastercard reported a 40% increase in contactless payment activity.
- Visa’s contactless rate in the U.S. is up 150% year-over-year.
- In Canada, Mastercard has more than doubled the allowable single-transaction amount. Similar increases are expected in the U.S.
- So far, contactless payments are remarkably secure.
- However, the technology is new and not hackproof.
The Growing Potential For Illegitimate Charges
Monica Eaton-Cardone, co-founder and chief operating officer (COO) of loss prevention specialist Chargebacks911, says that both consumers and merchants need to be aware of the growing potential for illegitimate contactless charges.
“As contactless transaction limits go up, we know from years of experience that fraud will go up as well. We urge consumers to be aware of their account activity, and merchants to keep a close eye out for unusual chargebacks, which may indicate that a contactless-payment account has been compromised.”– Eaton-Cardone
Entrepreneur, speaker, and author Monica Eaton-Cardone is widely recognized as a thought leader in the FinTech and eCommerce industries and a champion of women in technology.