Wireless Payment Card in detail

A contactless or WiFi card is a CHIP enabled radio frequency antenna embedded debit card which can be used at all the NFC enable contactless terminal all over the world. It allows communication between NFC-enabled objects at a minimum distance of 4 centimetres and without swiping the card, payment is done.

It is a fast and convenient way to pay for purchases up to Rs 2000 for a single transaction in India. It is a contactless chip technology designed to help you spend less time at the cash register.

HOW DO WIRELESS CARDS WORK ?

In order to use a contactless card, all you need to do is tap the card at the reader at the point of sale and enter your PIN. There is no need to hand over the card to the merchant to swipe or dip it into the EDC (Electronic Data Capture) reader. These cards have a small embedded chip that emits short-range radio waves.

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.

BENEFITS OF CONTACTLESS CARDS

  • Faster payments can be made as there is no need for dipping, swiping, entering card PIN or fumbling for cash.
  • There is less risk of card loss and fraud through counterfeit/skimming.
  • These cards offer enhanced protection and are safer and much secure.
  • These cards allow reduced contact with public surfaces, making them a safer option during this Covid 19 pandemic.

 

***The Reserve Bank of India (RBI) has increased the single transaction limit on contactless payments without PIN from Rs 2,000 to Rs 5,000 with effect from January 1, 2021 which will offer relief for many cardholders who were unable to make payment above Rs 2,000 using credit or debit cards through Near Field Communication (NFC) which does not requires PIN.

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