Touch-and-pay cards get go ahead

Thanks to a system by Visa and Mastercard starting in September, UK consumers will be able to settle bills of less than £10 by holding up their credit and debit cards against a special secure reader. According to banking industry figures, there are more than 20 billion payments of £10 or less a year in the UK. Critics have questioned whether the system will be secure enough and warned it may lead to a rise in card fraud. The system got the go-ahead after Visa and Mastercard agreed on an industry standard for the technology they will use.

The companies that have signed up for the first phase of the programme are Royal Bank of Scotland, Halifax, Bank of Scotland, HSBC, Lloyds TSB, Barclaycard, Citi and Euroconex Technologies. Seven London postcodes (EC2, EC3, EC4, E1, E14, SE1 and SE16) will offer the system as well. Payment group Apacs said that more than five million contactless cards are expected to be issued by the end of 2008, and they will be accepted in more than 100,000 outlets.

News source: BBC News

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23 Comments

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So has small can the amount be to validate using a credit/debit cart? At my local garage i think the minimum spend is £5 to use your card (PIN system).

EDIT: Forgot to add, this sounds a lot like the system they use for the toll roads in Portugal (BRISA). You can pay as little as 90c and you hand over the ticket and your credit/debit and they just swipe it and hand it back to you, no authentication.

QuarterSwede said,
In the US at least credit card transactions smaller than $20 do not require a signature. Most places still want one though.

leagally in the US, you cant set a minimum purchace to use a credit/debit card. It still happens alot though

this is the same wireless system that gas stations here in the US had hacked a while back. I dont trust this at all unless there is user authentication of some kind (pin or sig).

The costs of such authorization schema are a bit high for such micro-transactions (in fact, the cost is often higher than that of the transaction). That's been the big barrier to using signatures/PINs for micro-transactions.

Cant really call the bank when you cash has been stolen and you want them to cancel you cash :P
Yea I like cash and debit card more, but I have to build my credit because it help out later on in life. I would like to drop a wad of cash (or more like a plastic trash bag of cash) but im sure car dealership will be calling around if any banks have been robbed

Doli said,
Cant really call the bank when you cash has been stolen and you want them to cancel you cash :P

I don't store my cash at the bank, why would I? :cheeky:

D-M said,

I don't store my cash at the bank, why would I? :cheeky:


Well your house could burn down. If you stored it at the bank it could never be stolen or lost unless the bank fails (extremely rare), than you would only lose the excess money that the government doesn't insure ($100,000 usually).

Also, your money loses value from inflation if you don't leave it in savings or invest it.

RootWind said,

Well your house could burn down. If you stored it at the bank it could never be stolen or lost unless the bank fails (extremely rare), than you would only lose the excess money that the government doesn't insure ($100,000 usually).

Also, your money loses value from inflation if you don't leave it in savings or invest it.


I guess you guys never heard of fireproof safes, bags of money under dog houses, etc. I guess your all lost in the technical world.

D-M said,
I guess you guys never heard of fireproof safes, bags of money under dog houses, etc. I guess your all lost in the technical world. :rolleyes:

I'm only lost in the world where it's spelled "you're".

So ... you lose your card, or it gets stolen ... Someone can use it to make lots of sub £10 transactions? Hardly secure, or am I missing the point?

Its bad enough that banks don't recognise that credit card fraud still goes on, did anyone see the watchdog program recently about it (I think it was watchdog it might have been that Trevor McDonut program on ITV) where banks refuse to acknowledge it exists because "chip and pin" is secure and that the little gold chip is detectable? It was proved that this isn't the case and fraud does exist but the banks refused to listen and charge the customer, or when it is proven that the consumer was no-where near where the fraudulent transactions took place, they take the money back from the vendor thus negating any loss that they make and passing that onto the vendor

It depends on your usage as well. I believe banks collect a lot of info about the frequency of spending, etc. When I went on a shopping spree, the shop called the bank on my behalf and had to give them a 'password' to confirm the card user. Hopefully they'd notice 10x£10 in such a short time.

I just wish banks would give more interest to savers like myself instead of making borrowing money easier.

i love the touch and go system.
it's been out in my town in jersey for a while now and i made sure to get the Chase credit card that has that to make my life more easy

Express said,
How does it help?
I would have never guessed that swiping a card is such a big chore.

you tap and go..no need for sig.
and i don't know if you noticed but some people take about a min. to sign their name.... :confused:

Quick Shot said,

you tap and go..no need for sig.
and i don't know if you noticed but some people take about a min. to sign their name.... :confused:

Sign their name? Signing for use of a credit card hasn't been used since Feb last year, its all chip and pin now.

BeLGaRaTh said,

Sign their name? Signing for use of a credit card hasn't been used since Feb last year, its all chip and pin now.


anyone can tell you that credit cards are MUCH safer than debit cards..
i work with money so i should know..

the security credit card companies offer is much better than what a bank can give you

Quick Shot said,

you tap and go..no need for sig.

Can't wait for you to misplace your card and suddenly find you've got 500 <£10 transactions...