Contactless Payment System works in a way similar to credit and debit cards, in which Radio Frequency Identification (RFID) is used. This technology works with the help of electromagnet, in which the tags given on the card itself seize many important information of the customers. It is different from mobile payment to some extent. At present, this technology has come in very few areas. There is a contactless payment card called EVM, which also works in ATMs. All the necessary details of the customers are given in the magnetic strip given in this card.
Contactless payment history
Mobil was the first company to use this technology. Using this technology, he invented the Speedpass contactless payment system, which was used at various Mobil gas stations in the city. At that time the Mobil company was working with a company called Exxon. Because of this, this technique was also used at ExxonMobil’s station. Freedom Pay was also involved in this race and in a very short time this company also used contactless payment. After this Bank of America and McDonald’s also used this technology for their customers.
After this, KFC, Burger King, Boots, It, Heron Food, Pret a Manger, Stage Coach Group, Subway, ATM Coffee etc. also used this technology to serve their customers. In March 2008, it became the first restaurant to offer this service to its customers.
At present, many big financial institutions are implementing this facility for their customers. These institutions include MasterCard, Citibank, JP Morgan Chase, American Express, Key Bank, Barclays, Berkeley Card, HSBC Bank, Lloyds Banking Group, Freedom Pay, The Co-Operative Bank, etc. Large international banks provide this facility.
Contactless debit card
According to a survey, it has been found that at least 60 percent of transactions in India are below 2000 rupees. According to the Reserve Bank of India, there is no special need of PIN for transactions below Rs.2000. Realizing this fact, many banks in India have decided to adopt the facility of contactless payment. For this, these banks provide the facility of contactless debit cards.
How to contactless cards work
The Contactless Debit Card works on the technology of ‘Near Field Communication’. This technology works under a specific wavelength transmission, wherein the card is held near the POS terminal, the customer using it, instead of swapping the card, simply keeps the card near the POS terminal and pays the amount. Can collect. In this way, they do not even have to use a pin in it.
Contactless debit card Floor limit
Since the customer does not have to provide the PIN of his card in its use, due to this, this card can be used for transactions up to a certain amount. This fixed limit is called floor limit. Different limits have been set in different countries. Like in Australia, pin has to be used for above a hundred dollars, there is no specific limit in countries like China, Austria, Canada etc. In Malaysia, a pin is required above fifty dollars.
Contactless payment security
Like other payment methods, contactless payment also has many security features. In view of the economic level, there are some contactless cards in which the amount payment limit is fixed, while there are some cards which can be used only up to a certain number. After this, there is a need to provide the PIN number. Contactless debit and credit cards use chip and pin numbers in the old fashioned way. Also protects the customer from many fraudulent offers. In this, in a special way, the bank itself checks whether the card sent by it has reached the right customer or not. The name of the owner of the card is not given in the card, but the name of a “place holder” is used.
Why use contactless payment
- First of all, the contactless card works very fast. It works 63 percent faster than any other mode of cash transaction and 53 percent faster than a normal card.
- Due to the fast working of contactless, many customers use it for shopping etc. In this way the number of customers increases a lot for the shopping mall.
- In this, a complex chip technology is used, due to which the transactions made through it are to a great extent safe as compared to other mediums.
- The chances of losing the card at the time of transaction are very less, as the card remains in the hands of the customer during this period.
- About one million merchants in India use the facility of contactless cards for their customers.
Benefits of contactless card
- It works twice as fast as a normal debit card. Because of this, there is no fear of any kind of fraud while transacting with its help.
- There are many important advantages of using it in retail, the most important of which is that the customer does not need a scraper.
- At the moment, both Visa and MasterCard are providing contactless cards.
- ‘Visa Pay Wave’ from Visa and ‘MasterCard Contactless’ from MasterCard.
- ICICI and State Bank of India are using it for their customers for many days. Contactless debit cards can be used like ordinary Visa and MasterCard cards.