A contactless card has a chip that holds your account information. (Representative image)
Contactless payment technology provides a fast and efficient payment method that is becoming increasingly popular in today’s fast-paced world.
Credit and debit cards are widely used by people for their convenience, security, and rewards. The convenience factor comes from the fact that cards allow users to make purchases without the need for cash or checks, which can be time-consuming and cumbersome.
Contactless credit and debit cards are considered a convenient way to make payments without the need for physical contact or a PIN. To use them, simply look for the contactless symbol on your card and the contactless reader at the point of sale.
Users can follow pre-defined steps to avail the services. The contactless system works where one can tap the card on the reader, and the payment will be processed within seconds. It’s important to keep your card safe and secure, as contactless payments are limited to a certain amount per transaction and per day.
Additionally, not all merchants or countries accept contactless payments, so it’s always a good idea to have another form of payment as a backup.
Overall, contactless payment technology provides a fast and efficient payment method that is becoming increasingly popular in today’s fast-paced world.
Contactless Credit and Debit Cards; How They Work
A contactless card has a chip that holds your account information and an antenna that picks up power from the signal sent out by the card reader. The card is activated when bought near the reader.
The card and the reader then transmit the encrypted data to a card processing network such as Mastercard or VISA. If everything is verified, it forwards the request to the card issuer.
The card issuer flags a stolen card, a purchase from an unusual location, or a large transactional amount. It also checks the available balance before authenticating the transaction.
However, users must note that hackers have been successful in using card skimmers designed to steal data transmitted by contactless cards.
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