Hey derspatz, remember ages ago when you drilled a hole through your credit card cause you hated the paypass thing?
do you still have a photo of it lying around? a friend of mine had her wallet stolen and the thief was able to get $80 through paypass :/
just wanted to show her your idea.
Hey HareleyQ
My method was to drill through the chip itself but that is not the best way at all as it stuffs up other security aspects and all also makes the card unreadable when inserted rather than swiped.
The better way is to not damage the chip but instead break the charge loop that inducts power to the paypass/paywave function of the chip.
To do that you don't drill out the chip but rather drill a 5mm hole with its center about 6mm in on the left hand side (when looking from the back) just under the MAG STRIP. This severs a number of wires used in the antenna/inductance loop (you can see the gleam of the wires afterwards) so PAYPASS / tap&go will no longer work but the card will still function in the chip reader.
For more info on that, including pictures / x-ray of a typical paypass/paywave card, visit this link: http://knowak.wordpress.com/2012/09/24/r-i-p-paypass-mbank/
If the card has been reported as stolen then your friend SHOULD be have her funds reimbursed though ...
regarDS