Selected Scotiabank cards issued after March 14, 2011 have the new Visa payWave™ feature.

To use the card, simply wave it over a special card reader located near checkout at participating stores. Wave readers look like regular credit/debit card terminals, but without keypads or swiping tracks. You don’t need to key in a PIN or sign a receipt, since contactless cards have small embedded radio antennae that transmit encrypted information to readers.

Wave transactions are usually limited to $50, including taxes. Merchants can lower that limit, so check with the cashier if you’re unsure.

Wave advantages
Waving is faster, easier and more convenient than swiping and then keying in PINs or signing receipts. Contactless cards also:

• Eliminate the need to count change.
• Reduce time spent in checkout lines.
• Generate cash register receipts.

No extra fees apply to wave purchases, which show on your credit card statements as regular line items.

Wave concerns
Some consumers fear that the embedded radio antenna will accidentally trigger wave card charges when they walk near the checkout. However, you must be very close to a wave reader to complete a transaction.

Others are afraid of charges from multiple waves by mistake. But cashiers can prevent one transaction from going through multiple times, so ask for a receipt.

While few retailers currently accept wave cards, availability is expected to increase. Canada’s two largest banks, RBC Royal Bank and TD Canada Trust, also offer contactless cards.

Wave risks
Stolen wave cards represent the greatest risk. Without having to sign or enter a PIN, criminals can quickly generate many transactions.

Also, the embedded radio antenna is vulnerable to hackers who know how to intercept and amplify stolen signals.

Most wave cards come with “zero liability” protection. But be careful. The policy fine-print states that for lost or stolen cards, you must establish that transactions are not your responsibility.