How does contactless payment security work?

There are many layers of security throughout the credit and debit payment systems that protect you and detect potential fraudulent activity when you make payments.  The card itself has new contactless smart card technology inside that significantly increases security compared to magnetic stripe payment cards. Contactless refers to the fact that it is a wireless device. Smart card means it contains a microprocessor, a small but real computer.  It has special security software to prevent people from making copies of your card, and it works with the systems that authorize the payment transactions to stop credit card fraud.  More detailed information about contactless payment card security is available from the Smart Card Alliance, an association that includes payment brands, banks and technology providers.