Fraud on the Rise: Contactless Payment Limits Increasing

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The COVID-19 pandemic has brought new trends and discoveries of how to make the world a more contactless space. With that in mind, contactless payments have increased in popularity because they don't require the user to touch any payment terminal when going through with a transaction.

Recently, twenty-nine countries in Europe have changed their regulations to allow for higher contactless payment limits. Some countries put in permanent changes, while others implemented temporary ones to allows for adaptation during the pandemic.

However, because contactless payments are relatively new, the fraud that comes with it and the remedies for that fraud are likely in early developments as well. The good news, up to this point, has been that contactless payment is relatively safe from fraud, compared to regular payment cards, occurring at less than half the rate of overall card fraud.

It is likely, though, that contactless payment card fraud will become more sophisticated and effective in the years to come, even if it does not take shape in the forms we might expect based on the paradigms established in the era of physical payment cards. Fraud will increase after every major expansion of contactless payments. Merchants should be aware of this not to avoid contactless payments, but to proactively seek out the fraud and chargeback mitigation tools that will help them weather these changes.

Merchants facing a high volume of fraudulent transactions and the chargebacks that come with it may choose to outsource fraud and chargeback prevention and management to a company like Chargeback Gurus, where their business can learn how to combat their specific fraud and chargeback challenges.

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©Chargeback Gurus 2021
Production: Emily Woodward
Narration: Phil Claffey