What is A Contactless Credit Card?
Compared with ordinary magnetic stripe credit cards, IC credit cards with embedded computer chips are encrypted and difficult to copy, making them more secure. Moreover, contactless credit cards enable “contactless” payments—similar to using a public transportation IC card—by instantly completing the payment transaction, making them simpler and more convenient.
A contactless credit card is a type of credit card that supports transactions through Near Field Communication (NFC) technology. Users only need to hold the card close to the payment terminal to complete the transaction, without inserting the card into the POS machine or entering a password (for small transactions). This type of credit card typically has all the functions of a regular credit card, but offers greater convenience and faster payment methods.
What is A Contactless Payment Card?
A contactless payment card is very similar to a regular credit card in many respects. The front of the card displays the cardholder's name and account number, while the back contains a magnetic stripe with account information. This means that a contactless card can be used anywhere a traditional credit card is accepted.
The contactless payment card includes a small RFID microchip. When the card is close enough to a payment terminal, the terminal can retrieve information from the chip, such as the account number and cardholder's name. This allows the cardholder to make payments simply by holding the card a few centimeters away from the terminal—there’s no need to swipe the magnetic stripe through a traditional credit card reader, and the card remains in the cardholder’s hand at all times.
Just like transactions made ith a standard credit card, the terminal sends the payment information to the issuing bank via a secure network to check the account balance and confirm the transaction. If sufficient funds are available, the bank sends an authorization code to the terminal, allowing the transaction to be completed successfully, and the cardholder is free to go.
Features of Contactless Cards.
1. Encryption Protection
Contactless credit cards use encryption technology to secure data. Each transaction generates a unique encrypted code, preventing the same transaction from being reused and reducing the risk of duplication.
2. Low-Value Limit
Contactless payments typically have a low-value transaction limit (specific limits vary by bank and region). For transactions within this limit, users are not required to enter a PIN or provide a signature. If the transaction exceeds the limit, users are usually prompted to enter their PIN or complete additional verification for added security.
3. Short-Range Transactions
Contactless cards must be within 4 centimeters of the card reader to process the transaction, reducing the likelihood of data being intercepted from a distance.
4. Two-Factor Authentication
Some banks use additional security measures like biometric identification (e.g., fingerprint recognition) or dynamic passwords, particularly when contactless payments are made through smart devices (like smartphones). This adds an extra layer of security to transactions.
How Contactless Credit Cards Work?
Each contactless payment card contains a tiny microchip and an embedded coil. The contactless payment terminal generates a magnetic field around it. When the card is close enough to this field, the coil in the card enters the terminal's magnetic field, triggering electromagnetic induction. This induction generates a small voltage that powers the microchip. Without this process, called inductive coupling, each contactless card would require its own battery, which would add size and weight and eventually run out of power. Since the card draws power from the terminal, contactless payment systems are also known as passive systems.
Once the contactless card receives power from the terminal, the chip’s processor transmits information to the terminal at a frequency of 13.56 MHz. This frequency is ideal for inductive coupling as it resists environmental interference, is less easily absorbed by human tissue, and allows for stable communication. The processor’s built-in instruction set also encrypts the data during transmission to ensure security.
How to Use Contactless Card?
Using a contactless card is simple and convenient. Here are the steps and key points to keep in mind:
1. Steps to Use a Contactless Card:
1.1 Confirm the Terminal Supports Contactless Payment
Check if the cashier’s POS machine displays the contactless payment symbol (usually four curved lines, resembling a Wi-Fi symbol) to ensure the terminal supports contactless transactions.
1.2 Hold the Card Near the Reader
Place your contactless card near the designated reader area on the POS machine, usually within 1-4 centimeters. The terminal will automatically read the card information.
1.3 Wait for Confirmation
The POS will emit a “beep” or display a message indicating payment success, confirming that the transaction is complete. For small transactions, no PIN or signature is needed, but for larger amounts, additional verification may be required.
1.4 Review Transaction Record
Verify that the transaction was successful and check the record if necessary to ensure the correct amount was charged.
2. Important Tips:
2.1 Transaction Limit
Contactless payment transaction limits are set by banks. Small transactions typically don’t require a PIN or signature, but for transactions above the limit, further verification may be needed. Specific limits vary by bank and region.
2.2 Protect Your Card Security
Store your contactless card carefully to prevent it from being lost or used without authorization. Consider using a card sleeve that blocks signals to protect against unauthorized payments.
2.3 Enable Transaction Notifications
It’s a good idea to enable transaction notifications in your bank’s app or payment app to receive real-time alerts. This helps you spot any unusual activity immediately if your card is lost or there’s an unauthorized charge.
2.4 Report Lost or Stolen Cards
If your card is lost or stolen, contact your issuing bank immediately to report it. Many banks offer “zero liability” protection, minimizing your risk if your card is misused.
Which Side of Credit/Debidt Card For Contactless?
You can complete a payment by holding either the front or back of a contactless credit card near the reader.
When using a contactless credit card, the primary component in use is the embedded RFID or EMV chip, rather than any specific side of the card. This chip allows the credit card to transmit account information to the payment terminal when held close, without needing direct physical contact.
Physically, a contactless credit card typically resembles a standard credit card. The front often displays the cardholder’s name, account number, issuing bank, and network brand, while the back may include a magnetic stripe and customer service contact information. However, none of this printed information is necessary for contactless transactions; the chip inside the card is what actually enables the transaction.
So, when using a contactless credit card, there’s no need to worry about which side is facing the terminal. Simply hold the card close to the reader, and the terminal will automatically retrieve the necessary account information from the chip and send the payment request to the bank to complete the transaction.
How to Know If Your Credit/Debidt Card is Contactless?
To check if your credit card is contactless, you can follow these steps:
Look for the Contactless Symbol
Check the front or back of your card for the contactless payment symbol, typically shown as four curved lines resembling a Wi-Fi icon (often called the RF signal symbol). This indicates that the card supports contactless payments.
Contact the Issuing Bank
If there is no visible symbol, you can call the customer service number on the back of the card and ask the issuing bank if your card supports contactless payments.
Try a Contactless POS Terminal
If you have access to a contactless-enabled terminal, you can hold your card near the reader. If the terminal reads your card, this confirms that it has contactless payment functionality.
Check the Card or Bank App Information
Some banks label the card as “Contactless” on the front, or you can look up card details in the bank’s mobile app. Many banking apps indicate whether a card supports contactless payments.
Are Contactless Credit Cards Secure?
Contactless cards use the same dynamic security measures as chip-insert cards. Each transaction generates a unique, one-time security code to protect payment information. This dynamic code effectively prevents payment details from being reused or compromised.
Additionally, contactless cards are designed with specific security features to prevent accidental payments. First, the card must be very close to the payment terminal—typically within 1 to 2 inches (about 2.5 to 5 cm)—for the transaction to go through, meaning there’s no risk of accidentally paying for someone else’s purchase at the checkout. Second, even if the card is held near the terminal more than once, it won’t result in duplicate charges, as the payment system includes anti-redundancy safeguards to prevent repeat transactions.
FAQ of Contactless Credit Card.
1. How Do I Protect My Contactless Card?
a. Regularly check your card: Regularly check whether the chip and magnetic stripe of your credit card are intact and make sure that the card has not been damaged or tampered with.
b. Avoid lending your card to others: Do not lend your credit card to others to avoid risks such as theft.
c. Take good care of your card: Keep your credit card in a safe place to avoid loss or theft.
2. How Many Times Can You Use a Contactless Card In A Day?
There is no uniform standard for how many times a contactless credit card can be used in a day. The exact number of times or the transaction amount usually depends on the issuing bank's policy, the amount of the transaction, personal settings, merchant policies, technical limitations, and so on.
3. What Is the Difference Between Contactless and Contact Cards?
Contactless card: uses radio frequency technology, i.e. wireless communication technology, for data transmission and interaction. When the card is placed within a certain range of the reader, the reading and writing operation can be completed through radio waves without physical contact.
Contact card: It needs to communicate with the reader through physical contact. Usually need to insert the card into the reader, through the contact for data transmission.
Where to Custom Contactless Card?
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