From August 16, 2021, PostFinance will begin gradually converting its payment terminals. PostFinance debit card holders will now be able to make payments of up to 100 francs without entering a PIN. A PIN will only be required for transactions higher than 100 francs.
The change only applies to PostFinance debit cards, and not to the postal bank’s credit cards or prepaid cards (recognizable by the Mastercard or Visa logo). The current 80-franc limit for PIN-free near field communication (NFC) payments will continue to apply to credit and prepaid cards from PostFinance.
PostFinance states that it is raising the limit for PIN-free transactions based on feedback from its customers and the results of a survey. The majority of PostFinance customers want the PIN-free transaction limit increased to 100 francs.
Good to know: You can deactivate NFC payments
Many people appreciate the convenience of NFC payments, which can be made simply by holding your card near an eligible POS terminal. But there are also many cardholders who are not comfortable with the security risks which come with PIN-free access to their money. For this reason, PostFinance gives its customers the option of disabling NFC payments at its ATMs, and via online and mobile banking.
Comparison with competitors
An 80-franc limit for PIN-free payments is currently typical in Switzerland. Swiss payment cards can generally be used to spend up to 80 francs per purchase without entering a PIN. This applies to all Swiss payment cards, including Maestro, Mastercard, Visa, PostFinance and American Express cards. Up until the beginning of 2020, the limit for PIN-free transactions was just 40 francs.
“It is likely that PostFinance’s competitors will follow suit and raise their PIN-free payment limits to 100 francs as well,” expects Ralf Beyeler from online comparison service moneyland.ch. Payment network operator Visa has stated that it is not up to individual card issuers to decide on the PIN-free limits for Visa cards. These changes must be decided on together with financial institutions, merchant acquirers and merchants. A spokesperson for Visa’s Swiss office told moneyland.ch that it does not know of any countrywide plan to raise the PIN-free limit for NFC transactions to 100 francs.
PIN-free mobile payments are not affected
As before, consumers can continue to make NFC payments using mobile payment services without having to enter a PIN. This is the case with Apple Pay, Google Pay, and Samsung Pay, regardless of which card issuer supplies your payment cards. Twint too can be used for contact-free payments.
Verdict
The higher limit is a plus for PostFinance customers, believes Ralf Beyeler from moneyland.ch. “With the ongoing coronavirus crisis, many consumers are not keen on touching POS terminals to enter a PIN. For these consumers, being able to make payments of up to 100 francs without entering a PIN is beneficial. For people who never want to enter a PIN regardless of the transaction size, Beyeler recommends using mobile payment services.
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