A new variety of credit cards created for “speed shopping” have arrived in Australia, enabling small purchases without requiring a PIN number, signature, or swiping.

Issued by both Visa and MasterCard, these debit and credit cards allow transactions of $100 or less merely by placing or tapping the card on a reader near the register at checkout. The two credit card giants anticipate these speed shopping cards will change the way consumers pay for small transactions as well as cutting queues, particularly at lunch counters.

The smart chips embedded within the plastic are resistant to skimming and counterfeiting by criminals, maintaining a level of security despite the cards’ convenience. As well, purchasing patterns can still be monitored by the issuing banks as further protection against fraud, which isn’t commonly seen in transactions of such low value. Purchases made with stolen or lost cards can also be blocked.

The speed shopping credit cards are already accepted by7-Eleven stores, and some Foodworks, Sumo Salad, IGA, Boost Juice, Red Rooster, and Terry White chemists locations. Coles and Woolworths supermarket outlets are also considering using the speed shopping system, which is expected to spread to petrol stations and fast food chains quickly. Coffee shops and vending machines are also now accepting these transactions.

Purchases below $35 at McDonald’s outlets don’t require PIN numbers or signatures, but customers were still required to swipe their cards.

The speed shopping cards include micro-antennas as well as the smart chips, which transmit the transaction details wirelessly to the merchant’s credit card terminal.

MasterCard branded their speed shopping cards as PayPass and call the system “tap and go.” Four million have already been issued to MasterCard customers of Commonwealth Bank, Jetstar, and Woolworths Everyday Money accounts.

Visa’s payWave cards are now being issued for customers of NAB, ANZ, and Macquarie Bank.

“This is the next phase to replace cash,” said Eddie Grobier, vice president with MasterCard Australasia.

Source: http://www.heraldsun.com.au/