Contactless payment is a secure method for users to purchase products or services via debit/credit cards by using RFID technology or near-field communication (NFC)
How to use contactless credit card for making the payment?
Merchant will enter the amount on the contactless Point of Sale (PoS) machine, which will be displayed on the contactless reader. While making payment, you just need to tap or hold the card within 4 centimeter distance. Make sure there is a little symbol)))) on the machine. Receipt will be generated on the spot. In addition to this, card holder will get SMS/E-mail on their registered details containing the transaction details. Four green indicator lights or a beep sound will indicate when the transaction is complete. A message will also be displayed on the screen indicating the transaction is complete. No PIN is required for amounts less than Rs.2000. As per RBI, in India, payment through contactless mode is allowed for a maximum of Rs.2000/- for a single transaction where you are not asked to input your Debit/Credit Card PIN.
Here are the benefits for Contactless Card
Contactless payment functionality is specially designed for you for speed, convenience and security. It is more secured as during a contactless transaction the card is always with you which greatly reduces the risk of card loss and fraud through counterfeit/skimming. A contactless card has its own, unique, built-in, secret key, which is used to generate a unique code for every contactless transaction, thus making it more secure.
Here is how it works
The two NFC devices (reader and credit card), will identify each other by means of radio frequency (RFID).Both the devices has an inbuilt NFC microchips, which helps in internet free communication.
Is it really Safe?
If payments get executed without any physical contact, then there must be a risk of fraud? The answer is both yes and no. Yes, because payments can happen without contact. So payment can happen without our knowledge which is very unlikely because, the payments can happen when two NFC enabled device comes in close vicinity of few centimeters. This is really close. As soon as something comes so close to us, we immediately become aware. So it very unlikely that such payment will happen without our knowledge. We can also protect their NFC cards in another way. We can use “sleeves” that covers NFC enabled credit cards .These sleeves are designed is a such a way that it deflects the radio frequency. Such sleeves are available on Amazon etc. Search for “RFID Blocking Credit Card Sleeves” on Amazon you will get your product.
It is said that if infrastructure & safety is in place, cent per cent customers will prefer to change the traditional credit card to contactless one. Future is here!
Authored By - Dharma Sastha N
TCS Cyber Security Practice