If Your RFID MasterCard is Stolen are You Liable?

Filed in archive Contactless Payment Systems on October 19, 2004

Recently, on a tangentially-related post I made over at the popular culture blog, Blogcritics.org, the comments turned to RFID-enabled, contactless payment systems.

A reader there asked an interesting question about consumer liability for the MasterCard PayPass if it is stolen, etc. I thought readers here might also want to know the answer.

I reproduce the related thread here (for the rest, go over to Blogcritics):

Comment 12: MasterCard is already in the process of rolling out a contactless payment system using RFID chips.

The RFID chip could be embedded in a credit card, a key fob, or a cell phone. Then all you'd need to do is pass the card, fob or phone near an RFID reader and voila! Your credit card account would be automatically charged for the purchase. No swiping, no signing, no entering a PIN number.

Check out this story about Mastercard's new payment system.

Comment 13: And what if someone steals my phone, card, etc.? They don't even have to authenticate their use of my stuff to steal from me?

Comment 14: BHW, I asked the MasterCard spokesperson your question, and got this fast response:

"Hello Anita,

MasterCard PayPass transactions are just as safe as, if not more safe than, traditional card payment transactions, as the PayPass feature incorporates special security technology to prevent "replay" fraud when a PayPass program is implemented as recommended by MasterCard. MasterCard PayPass also provides more consumer control, since the card doesn't have to leave the hands of the consumer to be swiped by the merchant. Also, MasterCard PayPass provides zero consumer liability in North America, just like all MasterCard payment programs.

Hope this helps."

Related Entries:

« FDA Approves Human Chip I... | Main | RFID to Fight Terrorism »

Permalink: If Your RFID MasterCard is Stolen are You Liable?

Tags: contactless payment credit rfid mastercard payment contactless+payment rfid+mastercard mastercard+st

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Response from: fred (12/30/07 5:27am)

What if someone bumps into me and has a scanner to read the RFID chip? they could brush up against a purse of hip pocket with a scanner

Response from: john (11/06/08 12:54pm)

The real concern is not what may end up being charged to the card if the information is stolen, but rather the possibility of identity theft based on the information stored on the card. Banking institutions would likely cover unauthorized transactions but does not care if your identity is stolen as it is "Not their problem".

Response from: Dallas Shredding (07/07/10 10:20pm)

In my opinion, you will not be reliable as long as you report it the moment you found out that it has gone missing or stolen. If the person who took your credit card made a transaction under your name, now that is another issue because the bill will be sent to you and you might have to pay for it if you cannot prove that it was stolen. This is why we need to pay attention to all our valuables such as credit or debit cards. To be more safe, you can have your receipts and billings shredded so that your information will not be accessed by others - but with a stolen credit card, you just have to report its loss right away.

Response from: shredding San Antonio (09/16/10 10:33pm)

If your card was stolen because of your carelessness, then you need to take responsibility to what had happened and when you are questioned - it would be wise to narrate what took place clearly and honestly. Lately, credit card holders have become more prone to ID theft and other kinds of fraud. Thieves are aware that most of us do not bring too much cash with us but they want to get from us are our cards for they can get more from those.

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