For my sins, I can't enter a bookstore without buying at least one new book (for that matter, I have the same failing with wineries and ice-cream shops, but that's another story). On my last visit to my local bookstore, I saw the customer in front of me make their purchase with a swipe of their credit card and they were out the door in seconds.

I didn't realise that my card also offered the service and I bet many of you are probably in the same boat. If you haven't heard of it before, the new contactless payment system — also known as "tap and go" — is a scanner that reads the microchip embedded on your Visa or MasterCard credit or debit card.

All you have to do is swipe your card within 4cm of the scanner and it will approve the transaction in a few seconds. The system takes away the need to insert your card and verify it with a PIN or signature.

The worst part about shopping for me is lining up and waiting to purchase your items. Once the systems are in place across most stores and when every Visa and MasterCard is upgraded with the new technology, it will hopefully reduce the time we all have to spend waiting around in check-out queues.

Contactless payment systems are not new technology. In fact, Europe and North America have been using them for years. There are more than 50 million MasterCard PayPass card users across the world for instance, and 141,000 merchants with the systems installed.

But is it safe?

There has been a growing reluctance to trust the new technology and when it comes to your money, that's fair enough to question its security. Remember when online banking first came out? How long did it take for you to understand how it all worked and when you felt it was safe enough to pay the bills with BPay?

I expect the same slow but inevitable take-up of contactless payments across Australia but like all other forms of payment, it is another piece of technology you need to be cautious with.

The good news is that the maximum spend per transaction is $100 and if you have any transactions on your statement that you didn't make you can get a refund by calling your provider.

Swiping your card means it doesn't leave your hand, which reduces the risk of leaving it on the counter and walking out the store. And you'll be protected from skimming devices that read magnetic strips because you won't be inserting or swiping your card.

While "tap and go" technology might make it easier for thieves to use a card without needing to enter a PIN or forge a signature, they still need to steal the card, which will be just as difficult to pinch with or without the technology. So it's up to you to keep your card safe.

Here are my tips on keeping your "tap and go" card safe and secure:

• Always keep your card stored in a safe place and ensure you know where you left it.
• Keep track of your statements and your balance.
• Make a list of your emergency contact numbers and your card numbers in a safe place but make sure it's separate from your cards — don't put the list in your wallet.
• If you have unauthorised transactions or your card is lost or stolen, contact the provider's emergency number as soon as possible.
  

Sourced from http://money.ninemsn.com.au

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