There have been major strides in the financial industry to make lives more convenient and paying a breeze. One of these is the introduction of contactless credit and debit cards. Learn about the many contactless credit card benefits.
What is a contactless payment?
Contactless cards eliminate the need to swipe a card at a card terminal when making a purchase. Instead, customers “tap” the card onto the terminal, making the payment process easier and more efficient by limiting contact between the customer and the merchants.
What are contactless credit cards and how do they work?
A contactless credit card is embedded with a chip that allows the customer to pay through a secure radio interface. The chip is built into the card and is detected by an antenna in a nearby point-of-sale (POS) terminal. This is the same technology used on cards like the Beep, and RFID cards, which also work from a farther distance.
Contactless cards are called dual interface cards because they have both the standard EMV chip as well as contactless technology that allows customers to choose how they want to transact. Customers can use them in both contactless scenarios and the traditional swipe method.
Where is the contactless chip in a credit card?
The contactless chip is typically located on the front of the card, usually in the upper right or left corner. It's a small, circular or square-shaped symbol that often has a wavy line or wireless symbol beneath it. This is where you tap your card on the contactless terminal.
Is a contactless card safe?
Yes, contactless cards are considered safe. They use advanced security features that make them more resistant to fraud compared to traditional magnetic stripe cards.
What makes contactless cards different and safer?
Every time you use your contactless card, it generates a code that’s unique to your card and to the transaction you just made. This code can only be decoded by your bank to validate your transaction and can only be used once. The entire process takes less than 300 milliseconds.
Because the card no longer needs to be swiped, it reduces the chances of your credit card information being copied through a card skimmer.
When can I use contactless cards?
Contactless cards are made for smaller and on-the-go purchases like coffee in the morning, your meal over your lunch break, or a quick fuel stop as you're driving out of town. They're also a convenient way to deal with finances without the hassle of carrying cash or writing checks.
Each credit card network has a specific limit for their contactless transactions to ensure the safety of customers as well. If the limit of transactions is reached, you have to key in your PIN as a safety precaution.
How to stay safe when using a contactless card?
Because information is transmitted through the air, contactless cards can be targeted by skimmers who have devices that can tap into the card’s built-in payment app. You can keep yourself safe by investing in a wallet or credit card case with a built-in Radio Frequency Identification (RFID) protector that prevents RFID readers and devices from tapping into your card’s chip.
Just like any other card, you want to make sure your card is in your view at all times whenever you use it, whether that’s through contactless payments or for traditional payments.
In the event your card or data gets stolen, report it right away so that your bank can immediately block your card and stop any further purchases from happening.
How to use a contactless credit card
Locate the contactless symbol
This is typically a wavy line or wireless symbol found on the front of your credit card.
Approach the contactless terminal
Look for the contactless symbol, which is usually a wavy line or wireless symbol, on the payment terminal.
Tap your card
Hold your card over the contactless symbol on the terminal. Ensure the card is facing the terminal and is within a few centimeters away.
Wait for confirmation
The terminal will usually beep or display a message indicating that the transaction is successful.
Insert or swipe if prompted
For larger transactions or if the contactless feature is unavailable, you may be prompted to insert or swipe your card.
Embracing the future of payments
Contactless debit and credit cards in the Philippines have revolutionized the way you make payments, offering convenience, efficiency, and enhanced security. By understanding how contactless cards work and taking necessary precautions, you can embrace this modern payment technology.
As technology continues to evolve, it's likely that contactless cards will become even more prevalent in our daily lives. By staying informed and adopting best practices, you can enjoy the benefits of contactless payments while safeguarding your financial information.
