InvestorQ : What is a contactless card?
riya Ranade made post

What is a contactless card?

Answer
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seema Upadhyaya answered.
1 year ago


As the name suggests, a contactless card is a debit or a credit or even a forex card that doesn’t need to be swiped at the merchant or point of sale.

Investopedia explains contactless payment as a secure method for consumers to purchase products or services via debit, credit or smartcards (also known as chip cards), by using radio-frequency identification (RFID) technology or near-field communication (NFC).

To make a contactless payment via a contactless card, a person simply needs to tap their card near a point-of-sale terminal – leading to the nickname “tap-and-go”.

It further explains: Since contactless payments do not require a signature or a PIN, transactions sizes on cards are limited. The allowable amount for a contactless transaction varies by country and by bank. Examples of non-credit or debit card contactless payments include transit cards, Apple Pay, Android Pay and Google Wallet.