How do Contactless Credit/Debit Cards Work? Are They Secure?

You may have noticed the WiFi symbol your credit/debit card has. This symbol means that your card is WiFi enabled. This allows you to pay bills up to ₹2000 without swiping the card or even entering the PIN. So how does this happen?

When your card comes in contact with the POS machine it receives radio waves and shares your bank account, contactless card, or phone app details with the merchant’s payment reader for payment. The card either works on RFID( Radio Frequency Identification) or on near field communication technology. As the card works in a very remote area we must be assured that our details are safe and secure. 

As the card mostly doesn't require PIN or OTP you can use it when you are at hurry or when you are shopping. The card works in the range of 4cm or less. Therefore the transaction is encrypted. 

If you don't have a WiFi symbol on your card, don't worry you can have it. You just need to go to bank and enable the WiFi option of your card. Also you can set your own limit of contactless transaction beyond ₹2ooo, as per new RBI guidelines.

ARE WIFI CARDS SECURE?

Yes, they are mostly secure but sometimes in overcrowded places, someone may get hold of your card or may bring POS machine and take away your money. If such an incident happens immediately contact your bank.RFID protected wallets are also available in market one can use them for protection in overcrowded places, If possible carry your card only when needed, set a limit to your card, don't hand over your card to anyone and remember to change your PIN regularly. TAP TO PAY!

Thanks for reading. Do you use WiFi cards? Answer in comments. 

Written by

NIDHI PATEL 

Refrences:

1.https://www.forbes.com/advisor/credit-cards/contactless-credit-cards/

2. https://www.americanexpress.com/in/articles/life-with-amex/benefits/what-is-contactless-payment.html

3.https://www.capitalone.com/learn-grow/privacy-security/contactless-credit-cards/

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