How does contactless Credit Card Work

NewsHow does contactless Credit Card Work

Does your credit card have a symbol that looks like Wi-Fi? If yes, then you have a contactless credit card. The Wi-Fi symbol represents that your card is RFID enabled.
Thanks to this technology, now you can choose to tap the card on the machine instead of inserting the card.

How does contactless Credit Card Work
Image Source: CU Management

These new generation Credit Cards can make payments without having you insert or swipe them in the card machine. Just tap the card and you are done!

The cards work on Near Field Communication which lets devices communicate in close vicinity without coming in contact. They are powered by contactless chips that use one-time codes so you need not enter a PIN to make payment!

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How These Cards Operate

Contactless credit cards might seem like a magic wand, but in reality, they use an advanced technology called NFC (near-field communication) to make contactless payment possible. These cards have a small embedded chip that works on short-range radio waves. NFC emits short-range radio waves and when the card is placed within a few inches of a contactless-enabled machine, the payment information gets transferred.

These cards are also known as “tap to pay,” but actually no tapping is needed. Instead, you have to place your card within a few inches of the terminal to initiate the payment process.
The payment terminal may beep, display a green checkmark, or flash a green light when the transaction is complete.

To use the contactless feature on your credit card, you’ll need these two things:

  1. Contactless credit card
  2. Contactless credit card terminal
How does contactless Credit Card Work
Image Source:

To make payment using these cards follow these steps:

  1. Check if your card and the card reader have the contactless feature enabled
  2. Tap or hover your card on the contactless sensor of the reader.
  3. Wait for a few moments. The transaction is done without any PIN or signature.

Also Read: How To Send And Receive Money With Ria Money Transfer?

Benefits of contactless credit cards

These cards offer several benefits to their owners.

1. Speed and ease of use

Completing a transaction with these cards requires only a few seconds with a very friendly user experience.

2. Reduced wear and tear

Credit cards are pieces of plastic that are susceptible to wear and tear by getting swiped repeatedly in the machine but you don’t have to insert these cards into the machine which reduces wear and tear.

3. No contact with Public Surfaces

Due to the COVID-19 pandemic, we are avoiding any contact with public surfaces. These cards are the best option to use nowadays.


Even way before Covid-19, these cards are becoming popular due to their fascinating feature. These cards offer a faster yet safer option to make payments without any hassle.
You can request your bank to issue you a contactless card if you don’t already have one.

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Taiba Hasan
Taiba Hasan
A tech enthusiast with a Post Graduate degree in Computer Applications, trying to make technology less complicated for novice users.
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