Pertinent Factors You Need to Know Before Using Contactless Debit Cards

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The use of contactless debit cards has made day to day lives a lot easier than before. Earlier, you had to manually enter the pin for your debit card every time you make a transaction. But, in the case of contactless debit cards, you simply need to touch the debit card, and the transaction will immediately take place. Especially in pandemic times, contactless debit cards are simply a boon. Here are the pertinent factors you need to know before using one.

It Has Made Lives Easier

Contactless cards are the easiest way to shop. They are more like mobile wallets wherein you tap the card on a contactless card reader for payments. Traditionally, without using this technology, you had to insert or dip the chip card, and then the payment would take place. In this case, the technology has made the use much simpler than in the earlier days. These cards have replaced cash payments when shopping. Carrying a card is way better than carrying cash along with you while going on shopping.

Relies on Technology

Most of the retailers have such technology-related card readers that have eased off their workload as well. In the cases of cash transactions, they would have to keep cash separately for exchange.

While debit cards had replaced the cash transactions, there were still a couple of more steps involved wherein the customer would give his card, and the retailer would insert it into the device and then handle the card back to the customer for the password. The customer would enter the pin, and after a few seconds, the transaction was made, and a receipt was generated about the transaction.

During the pandemic, where people were refraining from any kind of contact with each other, this situation was especially dangerous. There would be so many cards coming in contact with the card reader and the retailer, and you had to sanitize the card after each use. Contactless debit cards were helpful in such a scenario where you can maintain all distancing standards while making payments.

Relax, It’s Safe!

With technology and convenience, contactless debit cards also provide for safety over transactions. Contactless cards offer multiple layers of safety, just like your EMV chip card. There is utmost safety against frauds and unauthorized transactions.

You have to place the card at a close distance of 4 cm from the card reader, and there can be only one transaction placed at a time. The cashier or merchant can enter the amount in the terminal. The POS terminals are designed so that they can read only one transaction per card at one time.

In the case of two cards sensed by the card reader, only one of the two cards will be read depending upon the card’s readability closer to the reader. The card reader will immediately ask you to connect any one of the two cards.

The card’s chip can protect you against the fraudulent activities because it uses unique codes and electronic signatures at each payment. This reduces any chances of cloning or interception at the source. In the case of any suspicion of fraud, your bank will immediately connect with you.

One Time Code

There’s a one-time password that you can adopt as a safety measure for your contactless debit card. This one-time password acts as an extra safety layer for transactions. In the event of payment, your bank will send you a one-time password, and after confirmation and satisfaction over the security, you can then proceed with the payment.

You can also set the transaction limits as per your convenience; the bank will decline any payment exceeding the set payment limits and number of transactions depending upon your daily and monthly limits.

Best Suited for Overseas

The contactless card is best suited for traveling overseas to ensure full security at the point of transaction. When traveling abroad, you are skeptical about safety, which can be ensured by a contactless payment mode.

How Do They Work

The contactless cards work on radio-frequency identification (RFID) technology. The technology allows the card to communicate with the card reader when it is held at a distance. The card reader authenticates your card’s information, and then the merchant POS sends the transaction to the card issuer, and the issuer analyses the transaction before approving it. There is an EMV chip along with the debit card number and a magnetic strip. If the store does not have a card reader, you can either opt for a swipe or use a chip reader.

The contactless debit cards offer all the ease for secure payments. Contact your bank to issue one.

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Hi, I'm James George, the founder of Mind My Business NYC and author of this blog. I am an entrepreneur and internet marketer. My wish is that this website helps you to grow your business and achieve your goals.

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