Contactless Payment: 9 Companies You Should Know

• 17 August 2020 | 1204 Views | By Mint2Save

What is a contactless payment?

Contactless Payment as the name suggests is a secure way for consumers to purchase a product or perform a transaction using technologies such as RFID(Radio Frequency Identification ) or NFC(Near Field Communication) by using Credit, Debit, Smartcard or a smartphone. No contact is made between the consumer and the seller.

You no more need to worry about carrying hard cash with you. Online is the way to go. These transactions are fast, transparent, and secure. All these transactions can be tracked by the bank or company which you are using. All the transactions are recorded and there is less probability of a transaction failure.

What contactless payment options are available in India?

You will be surprised to know that there are a lot of options already available. 

Various mobile manufacturers have come up with a technology known as NFC (near-field communication) which enables them to pay without making any contact. Famous examples of these contactless systems are Samsung Pay and Apple Pay.

What is the #1 contactless payment method?

There are various third-party apps available for your smartphone like Google Pay, Phonepe, Paytm. With an increasing demand for this system, various banks have come up with their own applications and portals.

Here is a list of companies which are popularly used for contactless payments and are highly secure and effective:

American Express: One of the most used companies in the world for contactless payments, and is highly ranked in the financial service market. 

Learn about  Types Of American Express Credit Cards

Apple Pay: It is an apple product so you can trust its security and it is also growing rapidly in the field of contactless payment.

Google Pay: It is a multi transaction platform that comes with google security and is a modification of google wallet.

BHIM: It is an Indian app and is promoted by the government of India. It is growing rapidly in India and you can trust its security.

Phone Pay: It is another app which allows you various op[tions for the transaction and also has various features in it 

Samsung Pay: It was launched to make transactions and payments easy and secure for the users in 2015 and is still an effective app to use.

PayPal: It is the most commonly used app globally for smooth and secure transactions. It has over 150 million users worldwide.

Paytm: It is the most commonly used app in India for all the payments and has grown over the years.

One97 Communications: Paytm is the product of this company and both the companies are doing well in India. 

How does a contactless card work?

You have to get the debit or credit card which is RFID (Radio Frequency Identification) and NFC enabled. Contactless credit cards have a chip inside them that generates radio waves. You can pay using these cards by tapping your card on point of sale (POS) terminals.

The transaction takes place when you tap the card on the machine. The payment terminal will notify if the payment was successful or whether the transaction has failed.

Is contactless payment safe?

Yes! They are absolutely safe and are considered to be far safer than traditional methods. Contactless payment options are gaining popularity due to the ongoing worldwide pandemic.

As more people are worried about the illness being spread through touch, advanced methods of payment are being demanded.

As there is no contact you are absolutely safe and you contribute towards safety using this system.

How do I know if my card is contactless?

To see if a card has a contactless payment technology, look for a wave-like symbol which is similar to the Wi-fi symbol on either the front or the backside of the card.

If you don’t find this feature on your card you can always request your bank and get a contactless payment-enabled card.

What are the disadvantages of contactless payment?

Unfortunately, everything has its pros and cons. 

These cards are expensive as these cards have technologies such as RFID and NFC. There is also a limit on the number of transactions you can perform in a particular amount of time. If you cross the limit of transaction you have to pay using traditional methods like pin or swipe.

If your card gets stolen or lost anyone who gets the card can perform the transaction. It is highly risky as there is no authentication required. This is the reason why you have to report it as soon as possible. It is risky when compared with traditional options.

 How many contactless payments can I make in a day?

Various companies use different policies for their contactless payments. In general, you can use contactless payment several times. If you use contactless payment more than the limit set by the respective company, you will be asked for a pin. This is done for security purposes. 

Using the contactless payment option frequently, the company finds it suspicious, and to ensure whether it is you who are making the transactions or not, the company asks you for the pin. It may seem like a disadvantage to many users but in the worst-case scenario, it will turn out to be a helpful option and will save lots of money.

How do I activate my contactless card?

When you apply for a contactless payment card it will be delivered to your house via post. This card has a landline number on it. You have to call on that landline number for activation.

Sometimes you can contact your bank and they will activate the contactless payment for you just like any other card of that bank. You are asked to make an initial payment using the CHIP and PIN option and you are ready to get benefitted by the contactless payments.

Can you turn contactless off?

You are free to use any other method for your transactions if you want, but you cannot turn off the contactless payment option. 

However, contactless payment has many advantages and is a time-saving method for transactions. You do not have to carry your cash and worry about it. You are just one tap away from the payment, it’s that simple.

How do I protect my contactless card?

You can protect your contactless card by wrapping it in a tin foil. This tin foil acts as a barrier and blocks off the contactless signals which are emitted by the card. It is easily available and an affordable way to protect your card. 

Special cases and wallets have now been developed which isolate the signals when you store the card in them. Your card will only work when you remove the card from the case. It is a convenient and safest option available.

What are the benefits of contactless payments?

Contactless payments are more efficient than carrying cash and finding change. You don’t need to worry about carrying that heavy purse or wallet anymore. It is super fast and secure. 

You won’t have to spend time swiping the card or entering the pin manually. If you are using smartphone-based applications you get additional security as you have to identify yourself while unlocking the phone using your fingerprint or a pin. 

Where are contactless payments accepted?

Contactless payments are accepted almost everywhere. You can use it in the grocery shop, malls, coffee shops, hotels, and almost anywhere as far retailer accepts it.

Can you request a contactless card?

Most of the bank itself notifies you for the contactless payment, but if you want you can contact your (bank/ credit) card issuer for the contactless card. 

How much can you pay on a contactless card?

Limitations in the payment are decided by the company. You are free to make countless transactions using the contactless cards but after a particular amount of cash is spent you are asked to switch to normal card transactions due to security purposes. 

Is the contactless card safe?

Contactless cards have been in the market for a long time now. People have mixed opinions about the safety of these cards. If you take proper precautions, using these cards is absolutely safe. Nowadays cyber frauds are on the rise so you should consider safeguarding yourself.

It is risky when you compare it to traditional cards. If you lose your card anyone can perform transactions as there is no need to authenticate who the user is. 

If you are considering getting a new contactless card take proper precautions and enjoy the seamless experience. 

How do I make a contactless payment?

It is the simplest 2 step method of transaction. The transaction happens when you tap the card on the machine. The installment terminal will tell if the Payment was effective or whether the exchange has failed.

What are the advantages of contactless payment?

Contactless payments are more convenient when compared with traditional methods. You can pay from anywhere at any time to any person who is also using this system. You don’t need to be physically present at the moment.

Wrapping Up

Contactless payment is the future. Although it goes without saying that, with contactless payments, the security of your device needs to be utterly strong. You need to take care of the security of your contactless payment by keeping your device’s and respective card’s settings disabled for any auto operations of NFC.