Contactless Debit Cards Overview
Reports suggest that over 60% of the financial transactions in India are below Rs.2,000.As per RBI norms, transactions below Rs.2,000 can be processed without a PIN. Taking advantage of that fact, many financial institutions have come up with the concept of contactless debit cards.
Other than security and fast transaction processing, contactless debit cards also have other advantages. Read on to find more about contactless credit cards.
How do Contactless Debit Cards Work?
Contactless debit cards work using the principle of NFC or Near Field communications. This technology uses radio transmission to establish contact when the cards are waved near a POS terminal. So, customers with Contactless debit cards will be able to make transactions by just waving a card instead of swiping it. One big advantage of having a contactless debit card is the fact that the cardholder will also be able to make normal transactions by dipping or swiping the card.
Why use Contactless Debit Cards?
- Speed and convenience - market research studies report that the average time in POS have been reduced by 30% to 40%.
- Contactless debit cards are 63% faster than normal cash transactions and 53% faster than the normal card transactions.
- Contactless debit cards equates to better convenience for customers and increase in sales volume, better customer servicing for merchants.
- Contactless payment systems use sophisticated chip technology and multiple levels of encryptions to guarantee a safe and secure transactions.
- There is less or no chance that the debit card will be lost or misplaced during the course of transaction because it will be in the customer’s hand.
- Contactless debit cards can be used at over 10 lakh merchant stores in India and over 30 million merchant establishments across the world.
- Also, the contactless debit card can be used for other purposes like ATM cash withdrawal, secure online shopping and safe e-commerce purchases.
Features and Benefits of Contactless Debit Cards in India
- The speed of transactions is almost doubled when compared to the normal debit cards. This will enable users to perform high value transactions without any hesitation.
- Greater security is guaranteed as the customer does not have to handover the cards to the merchant and complete the transaction even when the debit card is still in his hands.
- Contactless cards will be of great advantage when the transaction is taking place in a busy retail environment. Customers will not have to search for change or worry if they have cash. This will equate to greater convenience as compared to conventional cards.
- Currently, both Visa and MasterCard variants for contactless debit cards are offered in India. Contactless technology in Visa is powered by “Visa PayWave” and by “MasterCard Contactless” in MasterCard.
- ICICI Bank and SBI Bank are some of the popular banks in India offering contactless card. Many banks also offer exclusive deals like access to airport lounges and fuel surcharge waiver.
- The contactless debit cards can be used as regular cards also at all Visa/MasterCard enabled outlets even in the merchant terminals not designed for contactless payments.
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