Contactless cards work on near-field communication (NFC) technology, which employs radio transmission to ascertain contact when the cards are tapped or waved near a terminal.
Contactless credit cards and debit cards enable customers to make payments by waving or tapping the cards instead of swiping them. After waving the cards, the card user needs to enter the PIN number to complete the transaction. If you needed, these cards can also be used for swiping and diping. When compared to traditional cards using contactless payment cards, the transaction can be carried out very fast and easy.
However, there have been skimming attacks on these cards in some countries where they had been introduced. In certain instances, fraudsters have been able to skim the data using mobile applications.
Things to consider while using contactless debit and credit cards:
Tap with care
Contactless payments are so simple to make. Before tapping the card the users may forget to check the amount. Customers are likely to be overcharged when pay using contactless cards. Sometimes people don't request a receipt also, so they won't notice that they have been charged incorrectly.
Handling over cards
Many banks say payment cards are very secure because unlike the cards in use now, payment cards do not have to be handed over to the merchant. But often at some hotels, pubs, or shops the shop keeper or the staff will reach out to take the card and tap it themselves. This may steal your details. Handing over the card could put you at risk of fraud. Keep the card always in your hands only.
Check the statements
Keep an eye on the statements. If your cards are lost or stolen, these still can be used by fraudsters to make contactless payments. How To Use Your Credit Card Wisely? Tips For The First Time Users
When you have more cards
If you have more than one contactless payment card in your wallet, card clash may come. When commuters don't remove one particular card to use on the reader and try to tap their whole purse or wallet. Contactless terminals are designed to only take one payment from one card for any one transaction, so will reject payment if more than one contactless card is presented at the same time.
Don't keep the contactless payment card like other usual cards. A thief standing apart from you can steal your details. Technology is vast and now fraudsters are using card readers to steal details from people using simple contactless card readers purchased off the web. They can grab the details and order something in your cards. Even if your wallet is hidden out of sight in your bag or pocket this can happen. 7 Credit Cards With Best Rewards And Cash backs In India