Activity 4: Contactless Card & Payment App

How a contactless card or smartphone app works?

    Contactless cards and smartphone apps enable quick and convenient payments. They use NFC technology, allowing users to tap their card or device on a compatible terminal for fast transactions. Benefits include speed, convenience, security, and integration with smartphones.

   Contactless card includes debit and credit cards which are financial tools that enable individuals to make purchases, access funds, and manage their finances. It is often used when an individual do not have enough cash to make a payment. Debit cards allow direct spending from linked bank accounts, while credit cards enable borrowing up to a limit for purchases, with repayment later.

    GCash can be used for online shopping and in-store purchases by scanning QR codes or Express Send. GCash promotes cashless transactions by allowing users to pay for goods and services without the need for physical cash. It is also important that the sender have enough load/money to make a successful payment. On the other hand, using a contactless card is quick and easy. Just tap it on the contactless-enabled payment terminal, wait for confirmation, and it's done. No need to swipe or insert your card.

What information sent between the contactless card/payment app and the card reader when it is placed in front of it?

• Cardholder Data: card number, expiration date, and cardholder's name and 3 digits security code located on the back of the card.

• Transaction Data: amount of the purchase, currency, and any additional data required for authorization.

• Security Information: one-time code or token to prevent fraud and unauthorized access.

What is the maximum amount you can pay for something using contactless card?

    The maximum amount you can pay with a contactless card varies depending on the card issuer, country regulations, and merchant's terminal.

    For BPI, you just need to insert or tap your BPI Debit Mastercard at the Point-of-Sale (POS) terminal or present your card to the merchant for the payment. For tap to pay transactions (or contactless payments), the maximum limit is Php 5,000 and does not require any PIN or signature.

  Transaction limits will remain the same even if user have multiple accounts. GCash consolidates multiple accounts that are under one user into one wallet. User wallet and transaction limits depend on which wallet profile they have.

Why is there an upper limit? 

  The upper limit for contactless card transactions helps reduce the risk of fraud and overspending. By setting a maximum amount, it limits potential losses if a card is lost or stolen. It also encourages the use of more secure methods for higher-value transactions. It also helps the card owner to control their purchases.

    As part of GCash's compliance with the Anti-Money Laundering Act of 2001 mandated by the Bangko Sentral ng Pilipinas (BSP), GCash has set limits on wallet balance and transaction amounts in order to protect users from financial institutions being abused through money obtained from illegal sources.

    A wallet limit is the maximum amount of funds that can be kept in user's GCash Wallet. Transaction limits are the maximum amount that can be received in user's wallet (incoming) or sent from it (outgoing). User transaction limit resets every start of the month. 

How many times can you use a contactless card or payment app in a day?

    There's typically no specific limit on the number of times you can use a contactless card in a day. As long as each transaction falls within the card issuer's transaction limits and your account remains in good standing, you can use your contactless card multiple times throughout the day for purchases. However, individual card issuers may have their own policies or security measures in place to monitor and prevent potential fraudulent activity.

• For GCash, it usually doesn't have a daily limit on how many times you may use it. You may send and receive money, pay bills, buy goods and services, invest, and do a lot more using GCash. You can use it as much as you need to. Individual transactions, however, can be subject to particular restrictions set by GCash or the participating merchants, such daily or maximum transaction limits. Checking any limits or restrictions that may apply depending on the kind of transaction you're making is necessary. 

References

• BPI Debit mastercard 2. (n.d.-a). https://www2.bpi.com.ph/content/api/contentstream-id/33f50d91-c898-4666-8a69-e09d571c5dcc/768d923b-512d-4f29-a7e1-63f71556ce57/About%20BPI/Files/2022/PDF/BPI%20Debit%20Mastercard_Primer_External%20%5BUpdated%5D.pdf

• GCash Help Center. (n.d.). https://help.gcash.com/hc/en-us

• GCash: Everything you need to know (make life easier) - go!. Globe. (n.d.). https://www.globe.com.ph/go/technology/article/gcash-everything-you-need-to-know.html

• How credit or debit card payment processing works: Merchant Payment Processing. (n.d.-b). https://www.mastercard.com.ph/en-ph/business/merchants/start-accepting/payment-process.html