With Neo cards, users can pay online, by using tap to pay, chip or magnetic stripe. I feel like using a magnetic stripe is not really a thing in Canada in 2024 as readers require chip or tap, but every Neo card comes with a magnetic stripe.
Having a magnetic stripe can be good for backward compatibility in countries that might not have chip readers.
On the other hand, cards with a magnetic stripe can be cloned using card skimmers.
Card skimmers are not widespread in Canada but can be widespread in other countries.
When traveling, I am worried that the bank will block my card if something goes wrong and I will be stuck without any ability to pay and would get notifications using methods that require access to internet that I may not have and expensive roaming that I don’t want.
To help users minimize chances of their cards being cloned, modern banks like Monobank allow users to turn off magnetic stripe in the app. It is a simple toggle switch in security settings that allows users to turn the magnetic stripe on and off.
Neo card settings allow to disable tap, chip and swipe transactions, but there is one toggle to disable and enable all of them and separate toggles for online transactions and cash withdrawals.
A more flexible way of arranging this would be to allow users to disable tap, chip and swipe transactions separately.
Some users are worried that their card will be clones, while others might be worried about their cards getting stolen and depleted by tapping, which requires no PIN code.