More and more card readers at POS terminals now support tap to pay means of making a payment. If we are not inserting the chip end of the card, how is it providing additional security?
Edit: wow, lots of great information, thank you folks for taking the time and explaining it like I’m 5.
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The extra layer of security of chip-and-PIN is that the chip is a tiny computer able to do operations using a secret number stored inside it. This way the point of sale terminal can offer it a transaction and the chip can sign it without the point of sale terminal getting to know how to do the signature itself.
This is not possible with a magnetic strip since it can’t have information that’s concealed from the point-of-sale terminal.
Tap-to-pay is still using the chip to sign the transaction, just communicating with it using NFC rather than electrical pins in contact. It’s up to your card issuer (and typically your account settings) how large a transaction is accepted when it’s signed without a PIN.
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