My colleague had been to the supermarket and purchased fruits worth Rs 250. While making a payment at the cash counter, he handed over the Yes Bank debit card and the cashier at the counter handed him a receipt without even swiping the card and entering the PIN number. He was confused on what had happened as he has not typed the PIN number. He left the place without asking any questions, as he had received a debit message of Rs 250.
He discussed this the following day with our team and that’s when he got to know on wi-fi enabled contactless cards. One of our colleagues took his card out of the wallet and showed him the wi-fi symbol. These cards don't need to be swiped at a POS machine and money would be debited up to Rs 2,000 just by waving it to the POS machine.
Many people are still not aware on wi-fi enabled contactless cards. In this blog, we will discuss everything you need to know on contactless cards.
Contactless payments are made by waving or tapping the contactless debit or credit cards over the POS machine. In the case of contactless payments, you don't have to dip or swipe your card at the POS machine.
The contactless cards work on radio frequency identification (RFID) technology. These cards have an EMV chip inside them which emits radio waves. The waves emitted by the card are captured by an authorized POS machine and payments are processed.
Contactless payments have a limit up to Rs 2,000. Cardholders will be allowed to make the payment only up to Rs 2,000 without entering their PIN.
Contactless cards are safe and secure just like any other Visa chip card. Contactless cards come with multiple layers of security and it ensures cardholders are safe from frauds. This card works only if it is within 4 cms of the POS machine or card reader. Only one transaction can be processed at a time by a contactless payment terminal. This makes sure that there are no cross or duplicate payments.
The main benefit of contactless cards is, the card will be in your possession while making a payment and you don't have to hand it over for payments. This can prevent misuse through skimming or cloning. With a contactless card, you don't have to spend time entering your PIN.
Contactless cards can be misused by fraudsters. As the wi-fi signal is transmitted smoothly, it might activate an unauthorized POS machine and this can lead to unauthorized payments. If the card has been stolen, the holder of the card can make an unauthorized transaction up to Rs 2,000.
See Also: Types of Frauds in Credit Cards
1. Keep contactless cards next to each other in your wallet. Doing so ensures safety to an extent.
2. You must carry the wallet containing the contactless card in the front pocket. Carrying the wallet in the back pocket could make you vulnerable to frauds, as thieves can walk up behind you with a scanning device.
3. You must be aware of the people around while using the contactless card. The fraudsters standing next to you can scan your card without you being aware. So make sure nobody is standing in close proximity when you take out your card to make the payment.
4. You can wrap your contactless card and keep it in a steel case.
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