Contactless cards are a quick and easy way to make payments without the need to swipe a card or enter a PIN. Users simply hold the card close to a contactless terminal. Purchases up to $200 can be made in this way. Transactions over this amount require a PIN. Banks are automatically issuing new or replacement cards with contactless technology.
They're convenient and easy to use. And they're great for people who struggle to see PIN keypads. They can also reduce the risk of fraud because you don't need to hand over your card.
There is a greater chance of transactions being made without your knowledge or consent. However, you won't be liable for any loss resulting from any unauthorised use of your card unless:
- you have acted fraudulently or negligently
- you have contributed to the unauthorised use of your card, such as by failing to take reasonable care of it, or by taking an unreasonable time to notify your bank about the loss of your card.
Taking care of your card is especially important if it contains contactless technology. Contact your bank immediately if it is lost or stolen, or if you notice unauthorised transactions on your statements. For more about protecting your card, see our Quick Guides Cards and PINs and Mobile banking.
These are highly unlikely. Your card needs to be very close to a payment terminal to work. This prevents unintended walk-by purchases.
These aren't possible. The technology permits you to pay for each transaction only once. Even if you present your card to a terminal several times, just one transaction will go through. Nor will accidentally presenting two contactless cards result in more than one purchase.
How we can help
We can consider complaints about such things as unauthorised transactions and fraudulent use of contactless cards, but we cannot look into a bank’s decision to issue a card with contactless technology, nor can we require a bank to issue a card without contactless technology. Talk to your bank about your options if don't want such a card.
Contact your bank immediately if your card is lost, stolen or if you notice unauthorised transactions on your statements.
Customer worried about security of contactless technology
Jamie was concerned about the safety of contactless technology and asked her bank not to include such technology in her credit cards when replacements were next issued. Her bank replied that it was now issuing all new and replacement cards with the technology and could not meet her request. Jamie suggested the bank set a contactless transaction limit of $0, but the bank replied that it couldn't do that either.
Cards and PINs
The loss or theft of a credit or debit card can be worrying and inconvenient. But if someone also gets your PIN, you face an even greater risk of losing money. Banks typically cover any loss if you take reasonable care of your card and PIN and report any loss promptly. If you haven’t taken reasonable care, you are unlikely to recover the money. Protecting your cards and PINs is therefore vital, as…
By default, money loaded on to New Zealand-issued cards is New Zealand dollars. It can then be converted to the foreign currency or currencies you need on your travels. Most cards let you have funds in several currencies at once. You can generally load money on to a travel card at a branch or online. Processing loads done via internet banking may take two or more days.
If you bought your travel c…
If you make a payment with a credit or debit card through the Visa or MasterCard payment platform, you can ask your bank to charge the transaction back to the merchant’s bank, which will then debit the merchant’s account. Note: payments processed through EFTPOS cannot be charged back. You have no automatic right to demand a chargeback, but it is industry practice to charge back disputed transactio…
Updated December 2022