Credit and debit cards come in plenty colours and each has a special feature attached to it. Right from the basic cards to the premium cards that charge a hefty annual fee.
Credit and debit cards come in plenty colours and each has a special feature attached to it. Right from the basic cards to the premium cards that charge a hefty annual fee. However, there is a new symbol that can be found on credit and debit cards these days which looks like the symbol that denotes WiFi, just in the horizontal position.
If you have this symbol on your card, it means your credit or debit card has the contactless feature and can be tapped to pay. Contactless cards don't necessarily need to be swiped to make a transaction. These cards come with Near Field Communication (NFC) chip that allows short-range data transfer without the need to touch the point of sale (PoS) device.
As per Visa's official website, "Contactless payments use short-range wireless technology to make secure payments between a contactless card or payment-enabled device and a contactless-enabled checkout terminal. When you tap your card or device near the Contactless Symbol contactless symbol, your payment is sent for authorization." The website claims that the card will have to be in proximity of 1-2 inches of the PoS.
This payment technology is growing in developed countries. According to a report by Independent, one in every four card payments has been done using a tap to pay card. Visa claims, apart from US, over half of retailers in countries like Australia, Canada, UK and France accept contactless cards.
In India, the trend has been catching up and many supermarkets have started using PoS machines with the tap to pay symbol.
Benefits
Using tap to pay is quicker than the usual card swipe
Don't need to give your card away
No need to punch-in password for small amounts
Leaves a digital trail of expenditure
Dangers
While most banking facilities promote it as safe, instances of theft have been reported. In 2016, an image went viral on the internet where a man was holding a PoS in a crowded train.
Major banking brands claim that the method is secure as the card needs to be very close to the payment machine. However, in a crowded train that won't be a problem for a digital pickpocket.
The second line of defence is a cap on expenditure using contactless cards. For instance, a limit of Rs 2,000 can be placed on the card where the user can't use the tap-to-pay method for further transactions.
Since the technology is relatively new in India, there haven't been major reports of theft so far, but growing user-base could push pickpockets and thieves to experiment with their methods as well.
Credit and debit cards come in plenty colours and each has a special feature attached to it. Right from the basic cards to the premium cards that charge a hefty annual fee. However, there is a new symbol that can be found on credit and debit cards these days which looks like the symbol that denotes WiFi, just in the horizontal position.
If you have this symbol on your card, it means your credit or debit card has the contactless feature and can be tapped to pay. Contactless cards don't necessarily need to be swiped to make a transaction. These cards come with Near Field Communication (NFC) chip that allows short-range data transfer without the need to touch the point of sale (PoS) device.
As per Visa's official website, "Contactless payments use short-range wireless technology to make secure payments between a contactless card or payment-enabled device and a contactless-enabled checkout terminal. When you tap your card or device near the Contactless Symbol contactless symbol, your payment is sent for authorization." The website claims that the card will have to be in proximity of 1-2 inches of the PoS.
This payment technology is growing in developed countries. According to a report by Independent, one in every four card payments has been done using a tap to pay card. Visa claims, apart from US, over half of retailers in countries like Australia, Canada, UK and France accept contactless cards.
In India, the trend has been catching up and many supermarkets have started using PoS machines with the tap to pay symbol.
Benefits
Using tap to pay is quicker than the usual card swipe
Don't need to give your card away
No need to punch-in password for small amounts
Leaves a digital trail of expenditure
Dangers
While most banking facilities promote it as safe, instances of theft have been reported. In 2016, an image went viral on the internet where a man was holding a PoS in a crowded train.
Major banking brands claim that the method is secure as the card needs to be very close to the payment machine. However, in a crowded train that won't be a problem for a digital pickpocket.
The second line of defence is a cap on expenditure using contactless cards. For instance, a limit of Rs 2,000 can be placed on the card where the user can't use the tap-to-pay method for further transactions.
Since the technology is relatively new in India, there haven't been major reports of theft so far, but growing user-base could push pickpockets and thieves to experiment with their methods as well.
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