The safest "wave" to pay with your smart phone | News
(WMC-TV) - The credit industry calls them "contactless transactions."
I call them "wave" payments. Payments made either with a credit card or a smart phone by simply "waving" the card or phone over a payment terminal. The terminal detects a chip or app that relays payment information via radio frequency.
Bill Hardekopf, CEO of LowCards.com, said a MasterCard study predicted 150 million mobile devices will have contactless, "wave" payment capability within years. It's expected to encourage consumers to spend more.
"While this increased spending may be good news for banks and retailers, contactless payments can be dangerous to the household budget," said Hardekopf. "It could make it too easy for some people to buy
something spontaneously or throw a few more items into the shopping cart."
Here are Hardekopf's tips for managing contactless/"wave" payments:
- Remember that the rules of credit cards and debit cards still apply. If your account runs through a credit card, pay it off completely on time each month.
- If you can't afford to pay cash for it now, you can't afford it with contactless payment.
- Responsibly using contactless payment takes discipline. Think about every item you purchase as if you are paying cash. Write down each purchase in a notebook so you can keep track of where your money goes.
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