What Are Contactless Credit Cards & How Safe Are They? | AU Small Finance Bank
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Are Contactless Credit Cards Safer to Use?

    Yes, it is completely safe to use contactless Credit Cards. They have been in use in many countries for a long time and are getting increasingly prevalent in India. However, it is natural to have questions like how these cards operate, whether they are safe to use, etc. with new technological advancements.

    To answer your questions, contactless Credit Cards are one of the safest ways to make secure payments. Read ahead to know about contactless cards, their benefits, working, and contactless Credit Card safety features.

     

    What is a contactless Credit Card?

    A contactless Credit Card is a card that allows you to make secure payments without swiping your card i.e., making any contact. You can complete the contactless transaction just by tapping your card against a contactless-enabled card machine. If your credit card has a mark that looks like a Wi-Fi symbol, it is a contactless credit card.

    Contactless cards also feature the usual card components like the magnetic stripe, credit card number, an EMV chip, expiration date, and a security code. Contactless transactions are not only convenient but also quick and safe.

     

    How does a contactless Credit Card work?

    Contactless cards work on contactless payment technology. It is a kind of communication technology that allows you to complete a transaction with a contactless card. Near-field communication (NFC) is a short-range wireless technology that makes instant data transmission possible among gadgets placed centimetres apart. When you bring two NFC devices closer to each other, they can communicate through magnetic field induction.

    The best credit cards come with a radio waves antenna and a contactless chip. Upon your pulling the card over an intelligent reader, the radio frequency and a one-time code lets you complete your transaction. As you don’t have to enter your PIN for transactions under INR 5,000, contactless payment takes just seconds to process.

     

    How safe are contactless Credit Cards?

    Contactless Credit Cards are safe. Let’s understand how.

    Before adopting contactless secure payments, it’s natural for you to be concerned about their security. To answer your concerns, contactless Credit Cards come with security features like any other mode of payment. Moreover, contactless cards are in a better position to quickly integrate the latest security features introduced in the market.

    Contactless Credit Cards and Debit Cards have the similar level of multiple-layer security as EMV chip cards. Not having to dip your contactless card at the POS terminal creates another layer of security.

    Another big concern is if you can rely on contactless cards to deduct money without your knowledge when you are walking past a contactless card reader. The answer is no, the chances of your money getting deducted because of that are next to impossible thanks to several levels of protection in a contactless card.

     

    Benefits of contactless Credit Cards

    Some of the major benefits of using contactless credit cards are-

    1. Using contactless cards is fast and convenient

    They save you a lot of time as you do not have to give your card to the merchant, get it dipped into a card machine and enter the PIN. Your payment gets processed and executed safely and in a few seconds with a single tap. Contactless payments are about 10 times faster than swiping the card, inserting it, or using cash. Again, they keep your personal data more secure.

     

    2. Contactless cards offer increased theft protection.

    The card machine and your card must be about two inches or more apart to make a contactless transaction. Because of this, the odds of your card details getting stolen are minimal. Moreover, if you think you have been wrongly charged for any transaction, you can contact your card company. For wrongful transactions, you are not held accountable.

     

    3. All contactless transactions are encrypted, so your data is safe

    The private key used by your card to sign the transaction cannot be transmitted or even accessed during the transaction. It is encrypted on your card itself and so there is no way a merchant can receive any of your sensitive data like your identity, CVV or payment details. Rather, the card just sends your bank details and a one-time code to the card machine.

     

    4. It is not possible for you to be charged twice

    For every contactless secure payment, you need to tap or be within several inches of the card machine. Again, a one-time code is passed on from your card to the card reader for each purchase. Also, the cashless point of sale scanners is limited to just one transaction at a time.

     

    In conclusion, you don’t have to worry about Contactless Credit Card safety as contactless cards are one of the safest ways to pay. A thief won’t be able to create the one-time code the smart credit cards generate for every transaction. Contactless cards are far safer than magnetic strip cards. Choose contactless Credit Cards and choose the safer, faster, and more convenient way to pay.


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