Contactless payments using NFC technology should make the use of a credit card even faster and easier, since the card only has to be held up to a reader and, for smaller amounts, it is no longer necessary to enter a PIN.
Simple, fast, contactless
It takes time and nerves to stand at the checkout. Especially if someone wants to pay a small amount with a credit card. A cash purchase would have been completed long before the PIN was entered. Near Field Communication (NFC) is the solution to this problem.
Contactless payments are possible thanks to NFC. The transmission standard allows data to be exchanged over a short distance of a few centimeters. To do this, the cash register of the store must be equipped with this technology. You should hold the credit card at the point of sale for payment. The seller no longer needs to insert the card into the reader. Everything is completely contactless.
The entry of the PIN is often even omitted for smaller amounts. Many banks only require the code to be entered every five payments.
NFC: What needs to be considered?
This technology has been on the market since 2012. Almost every credit card now has NFC. Therefore, Near Field Communication can be described as the common standard. You can recognize a credit card with NFC technology by a special symbol: It reminds you of four sound waves that are getting bigger and bigger on the outside.
If the NFC symbol is printed on the card and the reader, you can pay contactlessly. Normally every supermarket offers this.
Contactless payment is possible with a checking card and credit card. However, there are big differences:
- With the checking card, the credit is loaded onto the NFC chip. Payments are possible until the paid-up capital is used up. The limit is 200 USD.
- Credit cards collect the amounts and debit them as a package. A separate recharge is not necessary. The payments are limited to a maximum of 50 USD. This form of payment is often used for small amounts.
Advantages and disadvantages
Contactless payment is on the rise. It’s convenient to be able to settle a payment quickly. So you also need to have less cash with you. You can also keep a close eye on all transactions. The purchases appear on your monthly card statement. You remain anonymous with cash, but the payments are difficult to track. Especially if the receipts are lost.
The arguments for and against contactless payment by credit card at a glance:
+ convenient and fast
+ no extra costs
+ less cash in your wallet
+ PIN under 25 USD not necessary (or only every 4th to 5th payment)
+ high security
– Cash is more anonymous
What about security?
At first glance, there may be some concerns about contactless payment. Theoretically, the credit card could be stolen. In this case, perform a normal block. No further payments are possible. Many banks require a PIN if multiple purchases are made in a short period of time. This contributes to your safety.
Visa calls its NFC system payWave. With MasterCard, they chose PayPass. In terms of security, it doesn’t matter which provider you use. Both are equally serious and follow the same process. No PIN is required for amounts up to 25 USD, at most every 4 to 5 payments. If it is between 25 and 50 USD, the customer must either sign or type in his PIN.