That is simply insane. I can not believe that credit cards can be so unsafe to use, and I have one of those with Paypass, so I am in danger. I will be definitely making a makeshift Faraday cage as soon as I can.
And they said my aluminum foil pants were crazy. HAH.
On a more serious note, that's quite interesting. I'm surprised that they left the signaling device bit unencrypted and all. Seems a bit like laziness on the part of the credit card companies and such. :\