Hi there.
These days we are in Colombia. My wife are doing payments with card with option disabled (contact less and strip band), and the payments are processed. I detected it by chance.
All the payment on card are correct in both cards (me and her), but pay attention if you are using this option as a security measure.
local shops, supermarkets and others. You have right, but if you freeze it with same POS, the transaction is directly refused. So I understand that the POS has connection.