When you buy something and need to pay for it, you sometimes pull out your Credit Card. And the person at the billing counter either swipes it or inserts it into a slot in the Card machine. Now there is a new kid on the block – get ready to tap your Credit Card.
Thanks to contactless Credit Cards, you can now just tap your card on a machine and you’re done! To do so, simply enable contactless card transactions on your card. The new generation of Credit Cards can help you make payments without having to swipe or insert them in a card machine. They use a technology called Near Field Communication which enables devices to communicate with each other when they are brought together. Each card also has a contactless chip that works on radio frequencies (RFID) with one time codes. So you don’t even have to enter a PIN!
According to the Reserve Bank of India, you can just tap your way through payments below Rs. 2000. Otherwise, you need to go the traditional route of swiping/inserting with a PIN.
Did you know that more than 60% of card machines with vendors are all enabled to process payments without any contact? This number is growing as the trend is slowly catching on!
Not just limiting to Credit and Debit Cards, they also include smartphones, smart cards, key fobs or other devices, including wearables (watches, rings, etc.). Payments are enabled via secure contactless systems such as Samsung Pay, Apple Pay, Google Pay, Fitbit Pay, or any bank mobile application that supports contactless processes.
There are many advantages that Contactless Credit Cards bring –
The transaction fees to process contactless payments are the same as swiping/inserting cards – so businesses don’t gain or lose anything by adapting to this mode of payment. But the great advantage is that it is a quicker process for you!
Definitely contactless Credit Cards make payments quick and easy – you don’t need to handle cash or take time punching in a PIN. Its quick and you can be done with your shopping before you know it. The reduced time is a great benefit for shopping establishments as well – as they can process more payments quicker.
It is safe as it has an in-built chip that protects through encryption. There is a feature that is built in, which even ensures that the same transaction doesn’t happen more than once by accident!
Because the process is so easy and takes such little time, businesses and shopping establishments are able to offer a great customer experience to each of their shoppers and customers. The whole process is effortless and easy. And very quick! Overall they are able to present a very favourable impression of their Brand to their customers.
But these contactless payments have some limitations as well -
Not all Card machines can process these contactless cards. This is a trend that is slowly catching on – but not every establishment will have them.
You can process payments up to Rs 2,000 or less in India with these Contactless Cards. For higher ticket bills, you need to go the traditional route.
To summarize, contactless Credit Cards are new and easy – they are very convenient and quick. And it is a trend that is slowly but definitely catching on! So the next time you shop at a place where they do contactless payments, tap your card like a pro, knowing that your transaction is safe and very quick!