Nowadays, technology is evolving faster than ever, modernizing the way we live, work, and even make payments. Gone are the days of counting through cash bundles or fumbling with card machines. Now with the rise of contactless credit cards, payments have become faster, and convenient. Curious to know what is a contactless card? how do contactless payments work? Then, let’s break it down for you!
What are Contactless Credit Cards?
Contactless credit cards allow you to make payments without physically inserting the card into a machine or entering a PIN (for smaller amounts). They use Near Field Communication (NFC) technology to transmit payment details securely. You might have noticed a small Wi-Fi-like symbol on your credit or debit card—that’s the sign it’s contactless-enabled i.e. you can make payments without having to swipe your credit card or enter the PIN.
How do contactless payments work?
Here’s how simple it is to use a contactless credit card:
- Check the machine: Ensure the payment terminal supports contactless payments (look for the same Wi-Fi-like symbol).

- Tap your card: Hold your card near the payment terminal for a few seconds
- Payment complete: If the amount is within the no-PIN limit or contactless payment limit (usually up to ₹5,000 in India), your transaction is approved instantly. For higher amounts, you’ll need to enter your PIN.
What are the features of a contactless credit card?
- Speed and Convenience: Whether you’re shopping, buying groceries, or paying for a coffee, contactless payments let you check out faster without holding up the line.
- No Password Leak: As you’ll not be entering any PIN there is no chance, that anyone can see your PIN while entering for payment.
- Secure Payments: Worried about safety? Contactless cards use encryption to protect your data.
- Limit on transactions: Contactless credit cards have a limit on tap-and-pay transactions to prevent unauthorized payments. The limit is Rs.5,000.
What are the disadvantages of contactless credit cards?
- Spending Limit: Limited to small transactions (usually ₹5,000 in India) without a PIN. Big transactions can’t be done for security reasons.
- Misuse Risk: Easy for thieves to make small unauthorized purchases if the card gets stolen.
- Payment Terminal Compatibility: Requires merchants to have contactless-enabled machines.
- Limited Awareness: Some users may be unfamiliar with how to use them or their safety features.
This was all about how do contactless payments work, what is contactless payment, etc. Contactless credit cards are more than just a tech trend they’re a step toward an easier, faster, and smarter solution to make payments. However, every woman should make sure that along with taking advantage of the facility, make sure not to overspend and make informed spending decisions.
As we have talked about spending through contactless credit cards, now it also important for every women to invest for their future goals.
FAQs
How do contactless payments work?
Can I use contactless cards internationally?
What should I do if my contactless card is lost or stolen?
Further Read,