Contactless Credit Cards: Frequently Asked Questions

 

While contactless technology is a relatively new way to make purchases, the technology it uses has been around for a while. Contactless cards use radio-frequency identification (RFID) which allows the card to securely communicate the necessary information with the store’s reader. The transaction is then sent to your card issuer who will review, authenticate and approve the purchase–all within seconds. Hotel room keys, freeway toll booths, even soda fountains utilize this handy and fast technology. 

 

Just like EMV chip card transactions, contactless cards generate a special one-time code that can’t be reused and can only be read by the card’s processing network making it very difficult for thieves to snatch. 

Contactless cards only emit a signal when in close proximity to a reader during a transaction, so it’s highly unlikely. If you’re using public Wi-Fi, your information is already available to thieves through that network. Because it’s much easier to hack, thieves will likely target your Wi-Fi connection rather than the card itself. 

You should only connect to secure networks and never access your personal accounts over unsecured networks. Arm yourself with a VPN (Virtual Private Network) to help better protect yourself while online.  

Remember, even if hackers have managed to intercept your card information, contactless cards create one-time codes that can’t be reused and no other personal data is transmitted during that transaction. Thieves would have to continually steal a code each time for every transaction, making the process very difficult if not near impossible. 

NFC-enabled phones use the same RFID technology as contactless cards so they function basically the same. Chances are your smartphone is equipped with a near-field communication (NFC) reader that allows your phone to function just like a contactless card. Mobile wallets also require being near the payment terminal to complete a transaction. 

The difference here boils down to preference as the payment process is the same: hover your card or mobile device over the contactless reader and wait a second or two for the transaction to be complete. Whether you bring your contactless card or add it to your mobile wallet, the transaction experience should be quick and easy.

The chances that you’ll be charged twice for a transaction is unlikely. Payment terminals are designed to ensure the prevention of overpayment. Once you’ve presented your card to the terminal and the transaction has been completed, it’s not possible to pay again on that same transaction. 

 

In order to complete a transaction, your contactless card will need to be about 1 to 2 inches from the payment terminal, so the odds of you unknowingly paying for someone else’s transaction is also unlikely. 

 

The contactless payment option is designed to make paying for smaller low-value items like a coffee or lunch a quicker experience. You don’t have to dip your card and use a PIN, you simply look for the contactless symbol, hover near or tap the terminal and in a second, your transaction is complete. 

 

Contactless payments are also considered safer than swipes since the information on the card’s magnetic strip can be stolen and copied using skimmers which are placed on certain payment terminals. 

Your contactless credit card will come equipped with a EMV chip, a magnetic strip and all of the other security features to give you payment options in case the store or vendor does not have a contactless reader.