What Are Contactless Credit Cards and Are They Safe?

Contactless credit cards are the norm in this busy digital world. Just tap your card and you can buy your groceries, fill your gas tank, and even grab your morning coffee. But What Are Contactless Credit Cards and Are They Safe? Here’s what you need to know.

What Are Contactless Credit Cards:

A contactless credit card is a credit card that first employs NFC (Near Field Communication) technology which allows transactions without inserting the card or entering a PIN for small payments (usually below ₹5,000 in India). Contactless credit cards are usually marked with a wavy symbol, which means they are contactless.

A contactless credit card is a simple process; simply tap your contactless credit card near the Point-of-Sale (POS) terminal. The entire transaction takes seconds. It’s simple, quick, and minimizes physical contact which was a relief amidst COVID-19.

How do they work?

When you wave your contactless card over an accepting terminal, radio-frequency identification (RFID) technology is used to safely transmit payment info to the payment processor. The information is encrypted, and you aren’t swiping or dipping your card.

Every touch utilizes a one-time use transaction code, so the card number isn’t transmitted along with the transaction—compared with magnetic stripe cards.

Are Contactless Cards Safe?

Yes, contactless cards are typically secure, thanks to a number of layers of encryption. Since each transaction uses a one-time code, even if the thief does successfully intercept the signal, they can’t reuse it.

But there is a risk. Anyone with a portable card reader could technically attempt to skim information if they’re within very close proximity. But in practice, this does not occur often and is difficult to achieve due to good security and bad range.

ALSO READ: 5 Credit Card Mistakes You Must Avoid to Stay Debt-Free

Tips for Remaining Secure

Use an RFID-blocking wallet if you want to prevent skimming.

Enable transaction alerts via SMS or banking apps.

Set up contactless payments with limits on transactions.

Monitor your transactions regularly for suspicious activity.

Contactless cards offer a blend of convenience, speed, and security. As long as the customers take basic precautions, they can use tap-and-go payments without any worry in everyday life.