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In addition, it is unlikely that the details from the PayPass chip could be read and then copied onto the magnetic stripe of a counterfeit card. This is because only a minimal amount of information would be accessible – and not the same information that would be be used on a magnetic stripe to conduct payment transactions at the point of sale.

A PayPass card only sends the account number and the expiration date of the card to a reader, along with a dynamic, one-time-only number that uniquely and securely identifies each specific transaction. PayPass cards do not send the CVC2 code (the three-digit code on the back of the card) or any billing address or zip code information. Importantly, the PayPass chip doesn't even have your name on it.

Fraudsters can electronically pickpocket your contactless card/device information to make purchases online or by phone

For a purchase to be authenticated and authorized via phone or online, typically several pieces of information must be presented – such as the personal account number (the number on the front of the card), expiration date, the CVC2 code (that three-digit number on the back of a card), and the cardholder's billing address.

The chip on a PayPass card does not send the CVC2 code or any billing address or zip code information. It doesn't even have your name on it.

This minimal amount of information is typically not enough to conduct payment transactions, either in person, on the phone or online.

Fraudsters can electronically pickpocket your card/device information for identity theft

There is a clear distinction between identity theft, where a consumer's identity is assumed by another individual for criminal purposes, and payment card fraud, where a consumer's card information is compromised and used to make unauthorized purchases.

Because PayPass cards only send a minimal amount of information, there is very little risk of actual identity theft. PayPass cards do not send any billing address or zip code information. The chip on a PayPass card doesn't even have your name on it. In addition, no payment card ever has personal information like your Social Security number on it.

You are responsible for purchases made with fraudulent contactless cards/devices

You are protected by MasterCard's Zero Liability Policy, which means you are not held liable for unauthorized fraudulent transactions.

Contactless cards/devices are less secure than magnetic stripe cards

In many ways, PayPass cards provide more control, since the card doesn't actually leave your hands to be swiped by a merchant. Also, the PayPass chip does not contain your name. The authorization process for PayPass transactions differs from that for magnetic stripe transactions – PayPass transactions generate a unique authorization code for each transaction, meaning it cannot be reused or replicated for fraudulent transactions.