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FTC to Scrutinize Contactless Payment Technology
coondoggie writes to tell us that the Federal Trade Commission (FTC) will be taking a look at contactless payment systems and the consumer protection issue surrounding them. "RFID technology provides obvious benefits, the FTC said. For example, the ability of producers using RFID to track exactly where in the supply chain their products are and by which retailer they were ultimately sold to a consumer has the potential to make product recalls more effective. However, there also may be costs regarding consumers' individual privacy rights associated with it."
Is why we're once again bucking the trend and doing something different?
A lot of the world is using chip+PIN, which while not perfect is still drastically better than what we've got, can't be sniffed from remote, is much more of a distinct action and has a huge install base.
I'm not sure what this obsession with RFID payment methods is.
When doing anything that requires something to physically touch is considered too much work and we'd rather risk our financial info being wirelessly transmitted than have to swipe a card, we have serious issues.
And all this about inventory tracking is kind of an orthogonal point to payment isn't it? I for one certainly don't mind them being able to wave rfid wands around a vague area and account for an entire big package without having to scan a unique barcode for every item. I wouldn't mind a checkout system where they didn't even need to find the upc (or for that matter, could scan the whole cart in one go instead of item by item). However, I don't see the big benefit of avoiding physical contact with my payment device (which I wish was more technically secure than my mag-stripe credit card).
XML is like violence. If it doesn't solve the problem, use more.
I won't use any contactless methods of payment. I know there are ways to capture info from a swiped card, but it's at least harder to get away with that just sniffing for RFIDs in the area. I'd rather not have my financial info available no matter where I go, as opposed to it being available when I use my magnetic strip once per payment. It's selling point is ease and quickness of use, but I've never heard anything about security.
And yes, I abhor the idea of RFIDs in passports too. I'll cover it in tin foil, along with my head.
Absolute power corrupts absolutely. indymedia
While I have serious misgivings about the privacy and security issues surrounding RFID (or other) contactless payment systems, I have to say that they can be extremely convenient. On a recent trip to Hong Kong, my wife's aunt (resident of HK) gave us each an Octopus card pre-loaded with a few dollars when we arrived.
Super convenient. My wife put hers in her purse, I put mine in my wallet. Going somewhere on the subway? Just pull out my wallet, slap it on the reader, and I'm through the gate. My wife could just wave her purse across the reader without even taking it off her arm (assuming the card was in her wallet near the bottom of the bag - it seemed to have a useful range of only 3-4 inches). No searching around for the right card, no worrying about losing the ride card between stops, just slap it down and it automatically calculates the fare and deducts from the amount on the card. When you need to increase or recharge the value on the card, you just take it to the recharge machine, pop it in, and put in a few dollars (or credit/atm card, whatever).
In HK the cards are accepted on pretty much all forms of mass transit (trains, subway, buses) as well as at an increasing number of convenience (too many 7-Elevens) and other stores (and supposedly taxis are supposed to be accepting them soon).
I think this is really the ideal use for contactless payment. Basically a replacement for carrying cash around, used to pay for the multitude of small-ticket items and services that you make use of during the day. We do it here in California with FasTrak for paying tolls, but there are a lot of other potential uses. It also makes particular sense for transit, where it not only works to make the actual payment but also replaces the need for a fare ticket, doing the journey tracking by itself. These types of uses also in many respects counter some of the privacy concerns - if you're worried about someone tracking what you are doing, you can always just use cash to increase your balance on your card, or even get a new card every time rather than recharge (though that seems wasteful). Requiring recharge, rather than tying it directly to a bank account, also means that you only ever have to worry about the amount you put on the card. Just like carrying cash around, but more convenient.
On the other hand, I really don't see any reason to have an RFID-enabled credit card. If I could use a cash card for small purchases then I'd only be using a credit card for larger ones; the few times a week (or whatever) I'm doing this it really isn't a hardship to have to pull out a card.
I think there are some awesome, efficient, all-around great reasons to introduce contactless payment systems for some purposes. However, due to privacy and security concerns (and the lack of any real advantage) I don't see why anyone would want something like an RFID-equipped credit card. Too much potential for abuse, with little or no real benefit (to the individual - no doubt businesses would find all sorts of fun uses for cards tied to individual people that they can remotely sniff).