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A to Z of contactless credit cards

The contactless cards give you the convenience of hassle-free transactions.   

Now, forget about dipping, swiping, entering PIN or looking for cash with the new generation contactless credit cards. With these contactless credit cards, you can easily do the transaction in a jiffy. Whether it is a fast-food joint, petrol stations and movie theatres etc., this card is accepted at all major places.  

What are contactless credit cards?

Contacless credit card

You may have seen ads of Visa Paywave cards where people wave their credit card to pay their shopping bill. This is precisely what happens when you have a contactless credit card.

These cards have been introduced quite some time back and are slowly gaining popularity among Indian customers. The cards use the technology called ‘near field communication’ (NFC). Each card has a contactless chip and radio frequency (RFID) antenna which enables it to carry out contactless transactions.

To use this card, all you have to do is wave over the terminal and radio frequencies will be used to generate a one-time code that completes the transaction.  This lowers the risk of fraud, and at the same time, it makes shopping faster and convenient. One of the features that make these cards safe is that one can make payment of up to Rs. 2,000 for a single transaction.  Credit card PIN is required for purchases more than Rs.2,000

Contactless credit cards come with Paywave sign (looks like the wifi symbol) on the top right corner of the card. The POS machine should also have the PayWave symbol for the transaction to be successful. If you don’t see one, then you have to ask the person present at the counter about it. If the POS is NFC enabled, then you can hold the card near the machine and wait for a green light or a beep. This indicates that the transaction was successful and you can leave.

Nowadays, most banks offer these payware cards. ICICI Bank was the first bank to come with a contactless credit card. SBI, HDFC Bank also have contactless cards.

Benefits of contactless credit cards:

  1. Convenient   and easy to use
  2.  Fewer chances of card loss or theft.
  3. Any loss of money due to some technical error will be limited to Rs.2,000.

Drawbacks of contactless credit cards

While the contactless credit card comes with multiple benefits, it can also lead to higher spending. The convenience comes with higher chances of frequent, low-cost purchases. While you may think that you are making small transactions, the total amount spent in a month can turn out to be very high. And if you miss the credit card payments, then it can hurt your credit score.  

Also, if your card falls in the wrong hands, many small transactions of up to Rs.2,000 can take place.


1.      Could I be debited twice if I have more than one contactless card in my wallet?

No. Contactless POS machine communicates with one card at a time. In case, there more than one contactless card in your wallet or purse, you will have to select the card through which you would like to pay.

2.      Where can I use my Contactless Credit Card?

You can make payments through NFC enabled POS machines. Just look for the paywave symbol at the POS machine to make the contactless payment.

3.      Can I use my Contactless Credit Card at merchants that do not accept contactless payments?

No. In this case, you have to make the transaction by swiping or diping your credit card like a normal transaction.

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