The UK banking industry has confirmed plans for the
national introduction of
contactless technology on UK credit and
debit cards for low value transactions.
Contactless technology is being introduced on a number of
payment cards from September this year, and will be available for
transactions of £10 or less.
Customers will simply hold their upgraded cards up to a secure
reader to make their payment in participating retailers, outlets
and vending machines.
The roll-out will start in London, covering the City financial
district and Canary Wharf. The initial launch will involve a mix of
retailers and selected cardholders who regularly use their cards in
these areas, either to buy goods or take cash out of cash
machines.
Visa Europe and MasterCard will lead the
roll-out, said clearing services organisation Apacs.
After the initial launch, the upgrade will expand across London,
followed by a gradual national upgrade in 2008. This will involve
card issuers replacing debit and credit cards to their own
timescales, and card-accepting businesses that decide to offer
contactless transactions increasingly upgrading.
The first card issuers include Bank of Scotland, Barclaycard,
Citi, Euroconex Technologies, Halifax, HSBC, Lloyds TSB, and Royal
Bank of Scotland.
Industry estimates suggest that over five million contactless
cards will be issued by the end of 2008, and that they will be
accepted by at least 100,000 merchants.
Although making a contactless payment does not routinely require
a Pin to be entered, the chip on the card will track activity, and
as a security feature it will request a Pin “from time to time”,
said Apacs.
Contactless technology will not affect customers’ protection
under The Banking Code for fraud liability, stressed Apacs.
John Bushby, general manager for the UK, the Republic of
Ireland, Nordic and Baltic countries at MasterCard Europe, said,
“Our experience testing MasterCard and Maestro PayPass among staff
at Royal Bank of Scotland's offices in Edinburgh and London has
shown us that consumers love the convenience, simplicity and
security of being able to 'tap and go' when paying for everyday
things such as newspapers, sandwiches and drinks.”
Cardholders do not need to do anything. They will be contacted
by their card company and given full details as they join the
roll-out.
More information is available from either
MasterCard or
Visa Europe.
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