Tap and Go Technology: A Secure New Way to Pay
When it comes to payment security, the card industry did not stop evolving as chip cards became the norm. As described in the article below by Commercial Card veterans Robin F. Anderson and Bill Kniering, tap and go wireless encryption presents the next evolution in securing your information. Keep reading to learn more about what it is, how it works and, most importantly, whether it is truly safe to use. Increasing your knowledge will help you take a lead role in keeping your organization informed as this technology makes its way into the Commercial Card space.
Tap and Go Technology: A Secure New Way to Pay
by Robin F. Anderson and Bill Kniering
In 2012, Barcelona, Spain, became the first city in Europe to introduce contactless payment (“tap and go”) capabilities. The technology presented consumers with a convenient, secure alternative to traditional chip readers and magnetic stripes – and since then, its popularity has grown exponentially across Europe.
Americans have been slower to embrace this time-saving technology, but ABI Research predicts that, by 2021, the number of contactless card shipments in the U.S. will have grown to 229.6 million – nearly 9 times larger than the number of shipments reported in 2016.
In the meantime, people are curious: What is tap and go? How does it work? And most importantly, is it truly safe to use?
About Tap and Go
Tap and go takes the place of swiping your credit card at a payment terminal or loading it into a chip reader. Through near-field communication technology, tap and go enables contactless communication between two devices at a close range. In this case, one of the “devices” is your tap-and-go-enabled credit card or the digital wallet of your smart device, and the other is the point-of-sale terminal. All you need to do is “tap” your card or smartphone to the terminal to start the payment process.
If you’re not sure whether a point-of-sale device is enabled for tap and go, check for the following symbol:
This symbol also appears on credit cards that have been enabled – though it may vary in design, depending on the type of product you’re using. Tap and go is available on Visa, MasterCard, American Express, Discover, Apple Pay, Google Pay, and Samsung Pay.
You will soon begin to see more of tap and go within the Commercial Card space as card expirations come due and card issuers launch their tap and go process.
Is Tap and Go Safe?
When you swipe your credit card’s magnetic stripe, your information can be easily lifted, or “skimmed,” through terminals. Using a card chip and signature offers improved security over the magstripe, but even this technology doesn’t encrypt your information – which still leaves it vulnerable to skimmer machines. Tap and go wireless encryption presents the next evolution in securing your information.
When you use your tap-and-go-enabled card at a payment reader, a chip and antenna in the card use radio waves to send out a token – a code of random numbers and symbols – to complete your transaction. The token is unique, which means that even if a malicious actor attempts to steal your transaction data, the data can’t be used to make another purchase or reverse-engineered to reveal your card number.
Things to Watch Out For
An important point to keep in mind when using tap and go technology is that you don’t need to actually tap your device to the point of payment. The near-field communication technology has a range of about 4 centimeters – meaning that, if you get too close, you might accidentally pay before you’re ready.
If someone steals your card (or smartphone), they’ll be able to use it to make purchases at any contactless reader. But, as with any credit card, you can report the fraud to your financial institution and have the credit restored to your account. You can also contact your bank to put a threshold amount on purchases made through tap and go, and you might also want to consider buying a RFID-blocking wallet to prevent card data theft.
Tap and go is quick, easy, and safe to use. And by using a few precautions, you can enjoy the convenience and protection of contactless payment.
About the Authors
Robin F. Anderson is a Senior Vice President of Commercial Card Consulting at Texas Capital Bank, where she consults with clients to maximize working capital. Robin is a seasoned professional with several years of Fortune 500 corporate experience in accounting, accounts payable, purchasing, and travel. She has experience implementing and consulting at JPMorgan Chase, American Express, SunTrust Bank, and, most recently, MUFG Union Bank. Robin is also an author, speaker, and globally syndicated columnist.
Bill Kniering joined Texas Capital Bank in 2019 and currently serves as Senior Vice President, Head of Commercial Card. In this role, he leads the development and launch of the bank’s commercial card platform. Bill has spent more than 35 years in the commercial card market and has experience working with U.S. Bank, First USA, and Bank of America. Most recently, Bill served at MUFG Union Bank, where he helped stand up the commercial card program and then managed the bank’s sales, implementation, and account management teams.
About Texas Capital Bank
Texas Capital Bank, N.A. is a wholly owned subsidiary of Texas Capital Bancshares, Inc. (NASDAQ®: TCBI) and is recognized as one of Forbes Best Banks in America. Texas Capital Bank is a commercial bank that exists to power prosperity in business and in life. We are headquartered in Dallas, Texas and work with clients across the country. All services are subject to applicable laws and regulations and service terms. For more information, visit www.texascapitalbank.com. Member FDIC
Disclaimer: The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and opinions of Texas Capital Bank, N.A.
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Lynn Larson, CPCP, is the founder of Recharged Education. With 20 years of Commercial Card experience, her mission is to make industry education readily accessible to all.