Five things to know about contactless credit cards

1. Contactless credit cards use near field communication ( NFC) technology that enables a transaction without the card holder having to insert or swipe the card.

2. It has a chip and a radio frequency antenna embedded. When it is tapped against a terminal enabled for contactless payments, the card transmits payment details wirelessly.

3. The contactless card does not leave the customer’s hand when a payment is made, so the customer is always in control and this gives added security to the card.

4. If a contactless PoS machine is not available, the contactless card can still be used for swipe or dip transactions.

5. Additional authentication requirements for transactions up to Rs 2,000 may be eased for contactless chip cards that adhere to the Europay-Master-Card-Visa standards.



(Content is courtesy Centre for Investment Education and Learning (CIEL). Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta)