Swipe debit cards to allow customers pay for items in ‘less than a second’

CONSUMERS will be able to swipe debit cards and pay for small transactions in “less than a second” with the introduction of contactless technology.

Bank of Ireland is sending the new Visa debit cards to one million customers over the coming months, which will allow them to pay for purchases under €15.

The card is swiped at a terminal, with no need to enter a pin number.

However, people will be limited to three transactions a day before they are asked to enter a pin number, in a bid to limit cases of fraud.

Bank of Ireland is the first bank in Ireland to introduce this technology, which, it said, will herald the introduction of “shorter queues and faster transactions” for consumers in comparison to cash and normal card transactions.

Head of consumer segments with Bank of Ireland Quentin Teggin said contactless technology is a key development in promoting electronic payment methods for low value transactions.

“The consumer and retailer appetite is evidenced by the fact that Visa Europe recently announced that Visa contactless card numbers in issue in the UK are predicted to increase from 13 to 20 million by the end of 2011,” Mr Teggin said.

Figures show that Irish consumers are still very reliant on cash with Ireland having the highest per capita usage of ATMs in Europe. In 2010, consumers withdrew around €5,000 per capita from ATMs.

“Irish consumers and businesses also remain one of the highest users of cheques, so the move to contactless is aligned to the Government’s National Payments Plan to reduce cash- and paper-based transactions and promote electronic transactions,” Mr Teggin said.

Bank of Ireland expects to start rolling out the cards towards the end of this year, in time for the Christmas spending spree.

Each transaction will be displayed on a customer’s bank statement and the cards have a number of security features. The contactless cards are subject to the same level of consumer protection as Visa cards.

If a consumer suspects their card has been used fraudulently, they should contact their bank.

The card works using a secure radio signal and is powered when it comes into close contact with the reader.