Have you ever imagined that there will come a day when you don’t have to swipe your credit card or debit card or even enter your PIN to authenticate a transaction? Get ready, because, with a contactless credit card or debit card, you can do just that! Contactless payment is revolutionising India’s payment system, adding both convenience and security to transactions.
With the RBI mandates to further secure credit card contactless payment, Mastercard contactless cards and VISA cards in India are becoming more common by the day. Read on to know more about how contactless payment works and how you can best use the credit card tap-to-pay facility.
What is a contactless credit card?
A contactless credit card comes without a magnetic tape. Instead, it has a technology embedded chip that allows you to make payments over a secure radio interface, similar to mobile wallets. Usually, contactless credit cards feature a Wi-Fi symbol. This means you can make payments without having to swipe your credit card or enter the security PIN.
All you have to do is tap or wave your contactless credit card at a close range, about two cm close to a contactless-enabled credit card POS machine or terminal. The entire payment process happens in just 3 seconds, which saves time. Since you don’t need to hand over the card to the merchant, and these cards feature various levels of security, using a contactless credit card is a lot easier and more convenient.
The following security measures have been taken to protect your interest as a holder of a contactless credit card:
- RBI restricts credit card tap-to-pay transactions over Rs. 5,000
- If your contactless credit card is used fraudulently, the issuer is mandated to cover the entire loss
How does a credit card contactless payment work?
A contactless credit card has an in-built mechanism that assists in carrying out the credit card tap-to-pay transaction. Just like chip-based cards, these contactless cards also feature a chip that works using radio waves. So, once you wave or tap your contactless credit card near the card reader, an antenna detects your card’s signal and transmits your card information to the POS terminal. Your transaction is then completed using RFID technology.
Some merchants also use a smartphone equipped with Near Field Communication (NFC) technology to process contactless payments. This also works in the same way as above.
Keep in mind that once you opt for a contactless card, you can’t deactivate the tap-to-pay option as the card is shipped with the RFID technology chip. However, a contactless credit card houses both the contactless technology and the standard EMV chip, which allows you to pay by using any method per the interface available with the merchant. Because of this feature, such a card is also called a dual interface card.
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FAQs
A contactless payment doesn't require cash or even swiping a card, eliminating any physical contact between the buyer's card or smartphone and the seller's POS. All you have to do is tap or hold your contactless card over a compatible card reader.
How to pay with a contactless credit card? ›
Contactless cards are embedded with RFID technology that allows them to communicate with payment terminals via radio waves. To make a payment, simply hold your card near the terminal and let the technology do the rest.
How does credit card contactless payment work? ›
How Contactless Credit Cards Work. Contactless credit cards have a small embedded chip emitting electromagnetic waves. This chip is not the “insert” chip you use instead of swiping. When you place your card within a few inches of a contactless-enabled payment terminal, your payment information is transferred.
What are the disadvantages of contactless credit cards? ›
Because contactless payments require neither PIN nor signature authorisation, lost or stolen contactless cards can be used to make fraudulent transactions.
Do you need a PIN for contactless payments? ›
Contactless payments are touch-free with no need to type in your PIN or hand over your card. Simply touch your card to the reader, listen for the beep, and your payment is securely processed.
What is an example of a contactless payment? ›
Popular examples of contactless payment systems include Apple Pay, Google Pay, and Samsung Pay. These platforms allow you to pay by tapping your smartphone or smartwatch on a compatible payment terminal. They use NFC technology to transmit payment information securely.
What is the daily limit for contactless credit card payments? ›
HM Treasury and the Financial Conduct Authority (FCA) confirmed changes to its rules to allow for the contactless limit increase to £100 in March 2021. The FCA also confirmed the threshold for multiple contactless transactions before a customer is required to enter their PIN will also rise from £130 to £300.
How is contactless payment done? ›
Contactless payment is a way of paying that doesn't require cash or even swiping a card. All you have to do is tap or hold your contactless card or smartphone near a compatible card reader while you're checking out.
Is contactless credit card payment safe? ›
Contactless payments offer robust security measures, surpassing traditional magnetic strip cards. EMV chip technology and Dynamic Data Authentication (DDA) enhance protection against fraud. Each contactless transaction generates a unique cryptographic code, ensuring card authenticity and preventing unauthorized use.
What is the #1 contactless payment method? ›
Question of the Day: What is the #1 contactless (mobile wallet) payment method? Answer: Apple Pay. Apple Pay 77% of mobile wallet transactions. Samsung Pay 17% Google Pay 6%
All you have to do is tap or wave your contactless credit card at a close range, about two cm close to a contactless-enabled credit card POS machine or terminal.
Which side of credit card to tap? ›
If your Visa card features the Contactless Indicator on either the front or back, you can use it to tap to pay where you see the Contactless Symbol at many of your favorite stores.
What is the most secure contactless payment? ›
Google Pay is one of the tap to pay payment integration and one of the best contactless payment apps for Android.
Do banks charge for contactless payments? ›
There are no additional fees for using your contactless card.
Can contactless payment be declined? ›
There are a number of possible reasons why your contactless payments do not go through. For example because your contactless card or the terminal you are using are not working correctly.
How do I tap to pay on Visa contactless? ›
Tapping to pay uses short-range wireless technology to make secure payments between a contactless card or payment-enabled device and a contactless-enabled checkout terminal. When you tap your card or device near the Contactless Symbol, your payment is sent for authorization.
How do I tap my credit card to pay my phone? ›
Pay with a tap at stores worldwide
Hold your Android device near the card reader and wait for the checkmark. Pay with your default card or select another. Google Pay will handle the rest. Order free stickers for your business to let customers know you accept Google Pay.
How to pay without a physical credit card? ›
The most famous ones are PayPal, Apple Pay and Google Pay. The basic functionality of these payment apps tends to be similar. You load them with funds from your bank account and/or receive funds from other sources. You then use these funds to make purchases and/or transfer them to your bank account.
