The financial year of 2018-2019 saw a growth of 51% in the volume of digital transactions. With an increase in digital payment, more individuals are looking for a safer and more convenient option of payment. Resultantly, a contactless credit card is gaining ground among credit card users.
How do contactless credit cards work?
Typically, such a card has an NFC tag that contains details like validity, CVV number, credit card number, etc. Any NFC enabled device will be able to read, collect and transfer data from a payment card. Notably, to protect the vital information, an encrypted route is established by the payment system. Card users need to tap or hover their credit card over an RFID enabled POS machine to compete for their transaction effectively.
What are the benefits of using contactless credit cards?
To begin with, the transactions made through the card are easy and convenient. For instance, according to RBI’s norms, users do not have to enter their PIN or sign an authorisation slip for transactions below Rs.2000. This makes the payment process quick and benefits both customers and retailers. For payments over Rs.2000 cardholders have to enter PIN manually, which offers a sense of security and control.
The fact these use data encryption, users’ card details are safe against malicious frauds. Furthermore, the card remains the entire time with the users, which lower the risk of skimming and misuse significantly.
One can enhance the safety aspect even further by availing credit cards like the Bajaj Finserv RBL Bank SuperCard, which comes with strong security features.
The payments network is also more reliable in case of contactless credit cards, which facilitates quick transaction at the first try.
Additionally, contactless cardholders also receive rewards points and loyalty points as well. Individuals can redeem these in several ways to get more out of their transactions.
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