These cards do not require any signature for payment and no PIN is required. The card is simply tapped against a special reader, and payment is then automatically deducted from the cardholder’s account. Many believe that the cards offer increased convenience and ease, making things faster and easier for both the customer and for retailers, who can deal with small transactions quickly and cut down queues.

However, there are concerns that these contactless payment cards are now being pushed onto consumers, with some of the biggest providers in the country now forcing them onto their customers. It is thought that other providers will follow suit. Amongst the providers whose cards are now all contactless versions are Barclay’s, MBNA, and Virgin Money.

Some customers are concerned about security, because there is no need to proof of identity, signature, or PIN for transactions that are under £15. According to reports there is a safety procedure built into the card, which will only allow a number of transactions to be made within a certain period to a maximum of £50 before a PIN is requested. However, many consumers are far from convinced by this feature.

One customer who was not happy about her Barclaycard being changed to a contactless model said: ‘These cards make theft so much easier and card theft more attractive. I have objected strongly to Barclaycard, who say there is no alternative card but that I could pay a fee to protect my card.’

Some consumers forced to have contactless cards is a post from: Credit Cards Bureau

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Leading the way in this new innovative way of shopping is Barclays, Barclaycard who have over 5 million contactless enabled credit cards in the U.K. at the present time. It all started in 2007 with Barclaycard introducing the One Pluse, making life easier for many of its customers.

Caffe Nero, one of the largest coffee retailers trailed the contactless concept in December 2008 in central London and completed the roll out across all their stores by October 2009. Managing Director of Caffe Nero, Jonathan Hart, says “We have had very positive feedback from our customers since our decision to trial contactless in December 2008. The rollout across our entire network will give our customers a choice of ways to pay which we hope will enhance their experience with us.”

Another company to roll out this concept is Pret a Manger, who have also successfully roll out the product throughout its 199 shops. Head of I.T. at Pret a Manger , Simon Kerry, said “As a high street food chain, our busiest times are during the morning and lunch time rush hour. These are the best times to pay with contactless as it cuts down on the amount of time that our customers will spend queuing in store. We are pleased our customers have embraced the technology and hope to see an increase of payment via contactless in the next year.”

These are only two of the big names who have rollout this concept, taking contactless payment product with Barclaycard to 20,000 outlets.

Amer Sajed, Chief Executive of Barclaycard UK, Business and International at Barclaycard, comments: “Five million contactless payment cards issued is a significant milestone on the journey of how people will pay for goods and services in the future. Together with Barclays we continue to rollout contactless technology across our card portfolio as we believe it is the future of payments. Consumer feedback highlights the increasing demand for contactless payment and we expect to see more retailers follow Caffe Nero and Pret A Manger and sign up to contactless in the near future.”

The Rise Of Contactless Credit Cards is a post from: Credit Cards Bureau

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MasterCard has said that it has now agreed to halve the fees charged for transactions, but that this was only a temporary measure pending a court appeal. Xavier Durieu, secretary general of retailer lobby EuroCommerce, said: “This temporary settlement sends an extremely negative message to everyone in Europe. This decision is appalling and we count on the Commission to win the court appeal.”

Retailers have been outraged by these fees, and according to reports have claimed that domestic and cross border payment card transaction fees in Europe are amounting to around £11 billion a year. EU Competition Commissioner Neelie Kroes said: “These fees are simply a hidden source of revenue for banks. MasterCard could not justify their level.”

MasterCard officials have said that the agreement to cut the fees on a temporary basis meant that the network could not invest in new products for consumers and retailers and could not sustain string competition within the payments industry in Europe. MasterCard Europe’s president, Javier Perez, said: “That is why these rates are only interim, and why we are pursuing our appeal in the European Court of First Instance.”

Neelie Kroes stated: “We will be monitoring implementation closely in coming months.” She added: “I have no intention that today’s announcement will allow Visa to benefit at the expense of MasterCard.”

Case Against MasterCard Dropped By European Union is a post from: Credit Cards Bureau

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