Many payment service providers are now enabling customers to pay for goods and services purchased under a particular threshold without touching their credit or debit card. Such contactless cards have a small antenna embedded in it which interacts with a terminal set up at the card reader to make payments.
The benefits of the such contactless cards are:
- These cards are extremely convenient and easy to use. Instead of swiping you just have to wave them in the proximity of the reader and get done.
- Since the cards do not require a signature that needs to be verified, you save on time.
- The contactless payment cards have a maximum limit that can be set. For example, you can pay for purchases only below $50 by waving the card. This way you can minimize their misuse.
- The same cards can also be used for swiping and making payments for higher value purchases.
- For retailers, contactless cards reduce the need for manpower to swipe the cards and operate point of sale machines.
- Contactless payment technology can further be implemented in stickers, mini cards, etc.
Contactless Cards & Security
When it comes to payment cards, security and ability to track transactions is the highest priority. The same concept applies to contactless cards as well.
Many people worry that if their contactless card comes close to a fraudulent terminal set up by someone, then they may get charged without them being aware of it. Since there is no point where there is a human intervention where the cardholder agrees to pay, they may not be in a position to stop fraudulent charges.
However, this has been taken care of. Contactless cards usually have a chip that is a smart card processor. This processor sends out an encrypted data format that can be accessed only by using a pin that has to be typed in separately. As long as you as a customer don’t type in the pin, the payment will not be processed in the other account.
In addition to this, many financial institutions that have started offering contactless payment facility to their customers are also offering a zero-liability protection to them. This means they can contest fraudulent charges without incurring any liability.
Given the ease and convenience, contactless payment options are quickly becoming quite popular across different countries. For sure, there won’t be any turning back from contactless payments now.