Post
demonetization there has been significant growth in the volume of digital
transactions. For instance, the financial year 2018-2019 saw an increase of 51%
in such transactions when compared to the previous financial year.
As
a means to partake in this regime, more individuals are opting for a contactless
credit card, which is a more secure and hassle-free alternative
of regular credit cards. Nonetheless, to be confident about the usage of such a
credit card, one needs to understand how it works and what benefits it carries.
How do contactless
cards work?
A
contactless debit card or credit card uses an NFC tag containing vital details
like CVV number, card number and expiry date, among others. An NFC enabled
device can easily read, collect and transmit data from the credit or debit
card.
As
a means to protect such crucial details, the digital payment system establishes
an encrypted communication route. Subsequently, it transmits the required data
from a credit card to the radio frequency identification or RFID installed in a
POS machine to complete a transaction. To initiate these steps, a credit card
user needs to simply tap or hover their card over on the POS machine.
Perks of using
contactless credit cards
RBI’s
latest norms pertaining to contactless payment eliminates the need to enter
credit card or debit card PIN or attaching a signature to authorize
transactions below Rs.2000.
That
being said, the following highlights the major advantages of using a
contactless credit card for digital payment.
1. Convenience
Since
users do not have to enter a PIN or sign authorization slips anymore and can
complete the payment with just a tap, the transaction is quick and convenient.
As a result, it reduces the length of the queue at cash counters to a great
extent and proves beneficial for both customers and retailers
2. Security
Contactless
cards use secured data encryption to transmit sensitive card details. It
directly lowers risks pertaining to credit card frauds, making it one of the
effective ways to protect credit cards from being hacked.
Further,
such a credit card remains in the hand of the user throughout the transaction
which, in turn, eliminates the risk of misuse or skimming.
Additionally,
as a safety measure for any transaction above Rs.2000, users are required to
enter their PIN manually. In turn, they provide more control and a sense of
security to card users at all times.
Additionally,
by choosing a credit card like Bajaj Finserv RBL Bank SuperCard, users can be
at ease about the security of digital payment. This card comes with robust
security features like zero fraud liability cover and in-hand security to
protect users against online fraud.
3. Faster
transactions
The
transactions made through a contactless credit card is much faster when
compared to EMV chip credit cards. Additionally, contactless payment networks
are more reliable too, which ensures that the transaction is completed quickly
and at a single go. It is one of the reasons users are smarter with a credit
card in their pocket.
4. Accessibility
and rewards
These
cards are accepted almost everywhere and extend multiple usages, which in turn
enhances the card’s accessibility. Further, some financial institutions extend
rewards and loyalty points to customers to make payments more lucrative.
Cardholders can redeem their reward points in multiple ways.
Therefore,
owing to its multiple benefits and robust security features, contactless credit
cards are a safer and more convenient alternative. Responsible use will also
make customers eligible to upgrade credit card.
