Nowadays, many banks have launched contactless ATM/Debit cards
or also know as Tab and Go ATM /Debit cards .
What is contactless card and how it is different from earlier ATM/Debit card we use
Contactless ATM or Debit card uses Near field communication (NFC)
or Radio frequency technology(RFID) for making instant payments in secure way
at Point of Sale terminals. In this there
is not need to swap the card at POS or merchant outlets but just have to wave or tap the card near the
contactless card reader for making payments. This card provides more secure way
for making payments as there is no need to give the card to other person to swap,
and card never leaves your hand ,so
provide protection against fraud or stealing .To increase the use of chip enable contactless cards and to provide hassle free transactions RBI has come up with guidelines,
For any low value transactions up to Rs2000 there is no need for additional factor of verification for contactless card ,means a customer using contactless card it is not mandatory for him to enter PIN at POS for transactions up to Rs2000 he can simply make payments by just waving the card at POS terminal and transactions above Rs 2000 it is mandatory to enter PIN for authentication.
All contactless card should be EMV chip enable.
Advantages of Contactless card
- Provides more secure way for making payments at POS terminals.
- Faster processing of transactions-As card holder can completed low value card transactions by contactless card in less amount of time.
- Convenience in card transactions.
First bank to launch the contactless card in India was ICICI bank ,It has launched two
contactless card named Coral contactless credit card and Expressions wave debit
card followed by Axis bank and SBI bank(sbiINTOUCH).With ease in use and more
secure, more and more banks will come up with contactless card to provide their
customers fast way of making card payments.
==>> Must also read - AXIS Bank released Contactless Multi-currency FOREX Card
