Contactless Payments: Convenience, Security, and What You Should Know

Contactless payment options have become increasingly popular at grocery stores, gas stations, restaurants, and retail locations. Whether you tap your credit or debit card, phone, or smartwatch, contactless payments offer a fast and convenient way to pay without handing over your card or touching a keypad.

Understanding how contactless payments work, their built-in security features, and how they compare to traditional card use can help you make informed choices and better protect yourself from fraud, including card skimming.

What Are Contactless Payments?

Contactless payments use Near Field Communication (NFC) technology to securely transmit payment information when your card or device is held close (usually within a few inches) to a payment terminal. Common contactless options include:

• Tap-to-pay credit and debit cards.
• Mobile wallets such as Apple Pay, Google Wallet, and Samsung Pay.
• Wearable devices like smartwatches.

Look for the contactless symbol (similar to a sideways Wi Fi icon) on your card or at the checkout terminal.

Benefits of Contactless Payments

Speed and Convenience. Contactless payments are significantly faster than inserting a chip card or paying with cash. There’s no need to swipe, insert, or enter a PIN for many small transactions. Just tap and go.

Less Physical Contact. Because your card or device never leaves your hand, contactless payments reduce physical contact with terminals, keypads, and cash. This can be especially helpful in busy or high-traffic locations.

Reduced Wear and Tear on Cards. Tapping instead of swiping or inserting your card can extend the life of your card by reducing physical damage to the magnetic stripe or chip.

Seamless Integration with Mobile Devices. Mobile wallets allow members to store multiple cards securely in one place, making it easy to choose the right account for each purchase. They also offer remote deactivation if your phone is lost or stolen.

Many members worry that “wireless” payments are less secure, but in reality, contactless technology includes multiple layers of protection.

• Every contactless transaction generates a one-time, encrypted code (often called a token). Your actual card number is not shared with the merchant, making stolen data far less useful to criminals.
• Because you aren't handing your card to a cashier or inserting it into a machine, there's less chance for the card to be copied, skimmed, or mishandled.

When paying with a mobile wallet, additional protections are required, such as:

• Biometric authentication (fingerprint or facial recognition).
• Device passcodes.

What Is Skimming and What Should You Watch For?

Card skimming occurs when criminals place illegal devices on payment terminals, ATMs, or gas pumps to collect card data and PINs. This information can then be used for fraudulent purchases or to create counterfeit cards.

Be cautious if you notice:

• Loose, bulky, or oddly attached card readers.
• Keypads that feel thicker or harder to press than usual.
• Broken seals on gas pump panels.
• Transactions that "don't feel right" or cause errors multiple times.

If anything looks suspicious, avoid using the terminal and notify the business or Workers. 

Why Contactless Payments May Be a Better Option to Prevent Being a Victim of Skimming

Contactless payments can help reduce skimming risk for several reasons:

• No magnetic stripe used. Skimmers primarily target magnetic stripe data, which contactless payments do not rely on.
• No PIN entry required. This eliminates the risk of PIN capture via hidden cameras or fake keypads.
• Encrypted, tokenized data. Even if the transaction data is intercepted, it cannot easily be reused.

Tips for Using Contactless Payments Safely

To get the most benefit from contactless technology, keep these best practices in mind:

• Enable transaction alerts so you're notified of purchases in real time.
• Regularly review your statements for unfamiliar charges.
• Always keep your phone updated with the newest operating software, including payment apps.
• Use trusted merchants and avoid unfamiliar or damaged terminals.
• Report lost or stolen cards or devices immediately.

Contactless payments combine speed, convenience, and advanced security, making them a smart choice for everyday purchases. While no payment method is entirely risk free, tapping to pay can lower your exposure to skimming and card theft compared to traditional swipe transactions.

If you suspect that your information may have been compromised, please contact us right away at 800-221-4020, and our team will work with you to review your account and discuss next steps if needed. Additionally, here are some resources provided as per Massachusetts law.