How Do Contactless Credit Cards Work?

Now more than ever, credit cards are not just for paying for things. These plastic cards are a fashion statement for some and even a necessity for others. However, due to the COVID-19 pandemic and with consumers avoiding unnecessary contact as much as possible, contactless credit cards have taken the spotlight.

What is Contactless Credit Cards?

Contactless credit cards let you pay for transactions by just holding them over the payment terminals.  With contactless payments, these don’t only reduce contact with the payment terminal as they only process much faster compared to dipping your card.

For coffee shop managers dealing with long lines, for example, those few additional seconds that customers need to wait for the processing of the credit card chip also called EMV or Europay Mastercard and Visa chip in the terminal can make a world of difference.

While this is a great technology, not all credit cards have it yet.

What are the Contactless Credit Cards Right Now?

The technology is still relatively new so it is not likely that you will find this feature in older credit cards. This is a feature common on cashback credit cards and credit cards for travel rewards.

Some of the contactless credit cards you can find today include:

• Wells Fargo Propel American Express® card
• Chase Sapphire Reserve®
• Chase Sapphire Preferred® Card
• Capital One Venture Rewards Credit Card
• Capital One Quicksilver Cash Rewards Credit Card
• American Express® Green Card
• American Express® Gold Card

How to Determine If You Have a Contactless Credit Card?

The past year has seen many credit card issuers quietly rolling out cards with contactless technology. This means that you might already have your own contactless card right in your wallet without even realizing it. To know if you have a contactless credit card, you need to look for a symbol that looks like a WiFi logo on your card.

The Contactless Credit Card Technology

Contactless credit cards use RFID or radio-frequency identification technology. Your contactless credit card produces a unique one-time code every time you tap it to the payment terminal. It helps ensure that people don’t steal your credit card information.

How to Use Contactless Credit Cards

Using contactless credit cards is very easy and simple with no need for any additional setup. After you have activated your credit card, you can go to the payment terminal, hold your card about an inch above it, pointing the contactless symbol at the terminal.

To check if the terminal can accept contactless credit cards, make sure you look for that contactless symbol often found close to the top of the payment terminal.

Once the payment is successful, a “ding” sound is typically heard. The whole process only takes around one second unlike inserting a credit card’s EMV chip that is usually processed for a few seconds.

Are Contactless Credit Cards Safe?

The contactless technology not only saves you from the need to touch credit card terminals. It keeps cardholders protected from credit card fraud. With contactless credit cards, you can have peace of mind knowing that there are lower risks of your information ending up in the wrong hands.