The system is cool, imho. For buying something low price, then you don't need to insert password, and I assume with limited operations during certain time. But for expensive ones, you just put your 4 digit pin. The difference is just the card isn't raped on the device.

Each time you pass the card on a place like that it destroy itself, specially if the clerk doesn't have a good day, they just smash the cards until they can't be read.

I replaced 3 cards in a year before the tap system.