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A Complete Guide to Contactless Credit Cards

Contactless credit cards technology is a quick and safe payment option for consumers. Contactless-enabled cards are ubiquitous, meaning there are many opportunities to use this new form of payment. It provides checkout convenience and speed.

 

However, you may be wondering how they work and how secure the technology is. Well, they operate through an embedded antenna loop that releases radio waves to transmit encrypted information.

What is a Contactless Credit Card?

Sure, you know "contactless" as "tap to pay." But what does a contactless card mean? It's the new way to pay that's faster than ever. Businesses are using contactless payment terminals that accept your credit card using radio waves or magnetic waves. All you need to do is place your card close to the terminal, and you're set. Contactless payment cards are rapidly growing and accepted worldwide at some of the most popular places. They are accepted at retail stores, fast food restaurants, pharmacies, transit points of entry, and grocery and convenience stores.

How Do Contactless Payment Cards Work?

It has a small chip that releases short-range radio waves near a contactless payment terminal, then transfers your payment information.

To initiate a purchase, you usually need to place your card within a few inches of the payment terminal. To ensure the transaction is done, don’t yank your card out. At the end of a transaction, the terminal may emit a beep, display a green checkmark, or flash a green light.

Security features of a Cashless Credit Card

  • Fraud Protection Provided by Banks

Fraud protection is always on your side with contactless usage of credit cards. They protect your money by storing it locally and only moving the funds when you authorise it. This means that financial institutions can always track transactions, so if someone steals your card, they can recover any stolen funds.

  • Make Safe Payments With a One Time Code

With contactless cards, your name, billing address, and card verification code are not transmitted. Each transaction has its own one-time code that accompanies your payment information. These payments are as safe as they come. No one can fraudulently obtain your payment information to use it. To do so, the hacker would need to break the complex algorithm that banks use to generate a one-time code.

  • Payments are Made in a Second or Two

In the tap-and-go era, it seems like dipping a credit card into a terminal takes forever. Between inserting the card and hearing the beep, it can feel like an eternity is passing before you can remove your card. This payment process is much faster than the old-fashioned method of dipping a card or paying with cash.

  • Stay Safe During the Pandemic

It's no secret that we're all a lot more aware of the public surfaces we touch since the COVID-19 pandemic. Using contactless credit cards helps to avoid more contact points throughout the day — and we're thankful for that.

Contactless Credit Card Limit

The Reserve Bank of India (RBI) increased the contactless credit card limit to ₹5,000. This means customers can now tap and pay as much as ₹5,000 without having to enter their pin number.

Top Contactless Credit Cards in India

  • SBI Signature Contactless Card

The SBI credit card, SBI Signature Contactless Credit Card, is a unique and premium option for Indian consumers. You get exclusive discounts and vouchers for every purchase.

Joining fee: 4,999

Annual fee: 4,999

  • ICICI contactless Card

ICICI credit card is the best option for first-time customers. The rewards of ICICI Contactless Credit Card endless. Cardholders receive rewards for every purchase which can be redeemed towards merchandise, vouchers, exclusive discounts, etc.

Joining fee: 500

Renewal fee: 500

  • HDFC Regalia Credit Card

HDFC Regalia credit card is one of the top contactless cards in India. As a cardholder, you get unlimited credit card benefits and vouchers. What’s more, you even get an exclusive discount on certain travel websites.

Joining fee: 1000

Renewal fee: 1000

Conclusion

Transaction time is a huge concern for today's consumers. Contactless credit cards will help you spend less time at the cash counter and let you get back to life's more pressing matters. All you have to do is tap on a contactless payment terminal, and you're done. Thus, the importance of contactless cards will only grow with time.

DISCLAIMER

The information provided by BFDL herein above is related to the Non-Partnered Banks/ NBFCs and is just for the purpose of information and under no circumstances the information provided hereinabove is intended to be source of advice or recommending any financial advice or endorsement of any sort.

The information including interest rates or fees and charges with regard to any credit card, provided on this website is gathered through publicly available sources over the internet and is considered as accurate and reliable to the best of our knowledge. BFDL disclaims any responsibility or liability regarding inaccuracies, omissions, mistakes etc. as well as offers by the Non-Partnered Banks or NBFCs. The use of information set out is entirely at the User’s own risk and User should exercise due care prior taking of any decision, on the basis of information mentioned hereinabove. You are advised to visit/ contact the respective Banks/ NBFCs to verify the information before making any application or opening an account. Further, BFDL does not undertake any responsibility or liability to update this information. YOU ARE SOLELY RESPONSIBLE FOR ANY LIABILITY OR DAMAGE YOU INCUR THROUGH ACCESS TO OR USE OF THE SITE OR SUCH INFORMATION OR MATERIALS EXCEPT WHERE THE LAWS AND REGULATIONS OF A PARTICULAR JURISDICTION CONCERNING WARRANTIES CANNOT BE WAIVED. Additionally, display of any trademarks, tradenames, logo and other subject matters of intellectual property owners. Display of such Intellectual Property along with the related product information does not imply BFDL’s partnership with the owner of the Intellectual Property of such products.

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