Breaking News

What Are Contactless Credit Cards & Everything To Know!

Contactless credit cards seem to be a new form of technology to many. But the fact is that it was introduced as early as the 1990s. Though it could not gain momentum till recently, it is nonetheless an interesting option to go for. Let us take a brief look at what contactless credit cards are.

Contactless Credit Cards

Contactless credit cards are an innovative form of credit cards. The technology they use differs completely from the traditional EMV credit card but offers almost the same function. A contactless credit card uses a technology called Near Field Communication or NFC. Contactless cards have NFC chip technology along with Radio Frequency Identification (RFID) antenna. This is the reason why these cards are also known as RFID chip credit cards or just RFID credit cards.

A contactless credit card just needs to be tapped for the payment to be processed.

To make a payment through contactless credit cards, all one needs is just to bring the card near the payment terminal (generally known as RFID reader) and the terminal picks the signal, initiates the transaction and makes the payment. The machine recognizes the contactless cards because of the radio waves which the NFC chip emits upon connecting with the payment terminal.

The technology the card uses is similar to that of Apple Pay, Samsung Pay or Google Pay. With the tap feature, you are only required to tap the card without dipping or swiping it or without entering the PIN or any further details. Check the best credit card options to access a contactless credit card.

Why Contactless Credit Cards?

A contactless credit card is preferable in many scenarios, especially where the payment amount is not exceedingly large. Some of the advantages of having a credit card with contactless technology are the following:

Faster Than EVM

The technology used by the EMV cards takes additional time in comparison with the contactless cards. Moreover, the EMV cards also consume more time in putting the details such as the PIN number. With the contactless credit cards, all you need to do is just to tap the card and the payment will be processed.

With no need to worry about changes, the medium of contactless is helpful in peak hours of shopping or for some other purpose.

Better Loyalty Programs

In order to encourage more users to go cashless or contactless, the card issuers offer rewards for this mode of payment. This makes contactless a powerful marketing and loyalty platform.

Many credit card companies are coming up with exciting offers of these types. Apply for SC’s credit card now and know more about the various offers to be had from them.

No Additional Fee

It might come into consideration that contactless credit cards may charge more than regular credit cards for the technology they offer. However, it is just a myth. The interest charges and the sum to be paid are the same in the contactless credit as you will find in any best credit card option.

What Makes Contactless Credit Card Secure?

The fact that contactless credit cards do not require you to enter the PIN number or any other details might make you think about the risks associated with it. But rest assured, the contactless technology providers have taken numerous steps to ensure the safety of your money without compromising your convenience.

  • The security features of a contactless credit card are no less than that of any other chip-embedded card. Furthermore, it is embedded with many more security layers to protect against any sort of fraud.
  • Contactless cards work only when they are close to the terminal making them virtually impossible to be intercepted by anyone. The data which can be obtained from the card is visible at the front of the card and would come off no use to the fraudster. This is because the visible details are of no use when it comes to making a clone card.
  • Yet another step for protection is that the payment capacity of the contactless credit cards is relatively lower than the regular credit cards. This is done keeping in mind the loss to be minimal if the card is stolen and used before you can file a diary in the police station or let the card company know.
  • To add to the protection layer, from time to time you will be required to enter the PIN number so as to be confirmed that you only are using the card and no one else.
  • If the card is stolen, let the bank know as soon as possible, and any payment made post the complaint hour will not be charged against you.

All these security features make the contactless credit cards at the top of the best credit card options. It is going to be of extreme convenience especially for those who do day to day transactions from places which involve the usage of cards such as gas-stations or shopping malls. So, if you already had your share of cash and traditional credit cards, give a try to a contactless credit card.

About Team | NewsPatrolling

Comments are closed.

Scroll To Top