Contactless payment system

Contactless payment system

Contactless payments work in a way similar to credit and debit cards, which use radio frequency identification (RFID). This technology works with the help of electromagnets, in which the tags given on the top of the card capture various types of necessary information of the customers. It is different from mobile payment to many extents. This technology is currently available 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 created the Speedpass contactless payment system, which was used at various Mobil gas stations in the city. At that time Mobil Company was working with a company called Exxon. Because of this, this technology was also used at the station of ExxonMobil. 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 technique for their customers.

After this, KFC, Burger King, Boots, Eat, Heron Food, Pret A Manger, Stage Coach Group, Subway, ATM Coffee etc. also used this technology to serve their customers. In March 2008, It Wo became the first restaurant to provide this service to its customers.

At this time, many large financial institutions are implementing this facility for their customers. Among these organizations, Master Card, Citibank, JP Morgan Chase, American Express, Key Bank, Barclays, Berkeley Card, HSBC Bank, Lloyds Banking Group, Freedom Pay, The Co-operative Bank, etc., provide this facility.

Contactless Debit Card Overview

According to a survey, at least 60 percent of transactions in India are below 2000 rupees. According to the Reserve Bank of India, there is no special need for PIN for transactions below 2000 rupees. Understanding this fact, many banks in India have decided to adopt contactless payment facility. For this, these banks provide the facility of contactless debit card.

How to contactless cards work

Contactless debit card works according to the technology of 'near field communication'. This technology works under a special wavelength transmission, in which the card works by placing it near the POS terminal. Instead of swapping the card, the customer who uses it simply places the card near the POS terminal and pays the amount. Can deposit. This way they don't even have to use PIN in it.

Floor limit of contactless debit card

Because the customer does not have to give their card pin, 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. For example, in Australia, PIN has to be used for over a hundred dollars, in countries like China, Austria, Canada, etc., there is no special limit. In Malaysia, a pin is required above fifty dollars.

Contactless payment security

Like other methods of payment, contactless payment also has many security features. Depending on the level of income, there are some contactless cards in which the limit of amount payment is fixed, while there are some cards which can be used only up to a certain number. After this, it is necessary to give the pin number. Contactless debit and credit cards use chip and pin numbers in the old fashioned way. It also protects the customer from many fraudulent offers. In this, in a special way, the bank itself checks whether the card sent by it reaches 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 a contactless card? (Why use contactless payment)

The first thing is that the contactless card works very fast. It works 63 percent faster than any other 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.

It uses a complex chip technology, due to which the transactions are more secure than other means.

The possibility of losing the card during the transaction is very less, because during this time the card remains in the hands of the customer.

Contactless card facility is used by about one million merchants in India 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 doing transactions with its help.

There are many important advantages of its use in retail, the most important of which is that the customer does not need cash.

Currently both Visa and MasterCard are providing contactless cards.

Visa Pay Wave is available from Visa and MasterCard Contactless from MasterCard.

ICICI and State Bank of India have been using it for their customers for many days. Contactless debit cards can be used like ordinary Visa and Master cards.