The tap function on credit cards lets you make a purchase without a pin number and is meant to make getting through the checkout quicker, but some worry it compromises security and may lead to higher debt.
Visa and Mastercard introduced contactless payment in 2010… just wave your card at the terminal, no need for a pin number. A security feature was put in place so that people can’t tap for more than $100 per store, but some say that’s not much security.
“I have lost my wallet before and it’s really frightening to think someone could get away with $100 and I would have no idea how or where,” said Tavis, a coffee shop patron.
There is also the concern that people will dig themselves into debt with the cards. A Mastercard study found that within the first year of using a paypass enabled card, consumers spent an average 30% more.
Canada's point of sale system operator Moneris reports that in the first quarter of 2016 consumers spent 6% more overall compared to the same time last year, and during that time contactless transactions rose by 109%.
Credit counsellors say the cards are a problem for some.
“Because it’s so easy to make those purchases, you really haven’t tabulated how much you are spending, and its usually outside your budget,” said Jeffrey Schwartz, Consolidated Credit Counseling Services of Canada.
Albertans currently carry an average of $27,000 in personal debt, more than any other province.
