All You Need to Know About Contactless Credit Cards and Payments
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What Is a Contactless Credit Card?
How Contactless Credit Cards Work
How to Know If Your Credit Card Is Contactless
Benefits of Contactless Credit Cards
Enjoy speed and safety when paying: One of the best known benefits of paying with a contactless card is how quick it is. When using a contactless credit card, it can take only seconds for a payment to go through. In fact, paying with a contactless card can be up to 10 times faster than paying by swiping or inserting a card. When a payment card needs to be inserted for the chip to be read, it can take longer as the transaction is authenticated. And although a magnetic stripe swipe is fast, it’s not always the safest way of paying since the account information on a magnetic stripe isn’t encrypted. A card’s security is definitely among what to consider before choosing a credit card. Avoid touching surfaces: Contactless cards also help avoid having to touch public surfaces, since the card only hovers over the payment reader. This can be perceived as a benefit for those who are trying to avoid germs. Minimize wear and tear on your card: Using a contactless credit card also causes less wear and tear on your card. Magnetic stripes and EMV chips can wear out over time from repeated contact with payment terminals. But since contactless chips don’t need to physically touch any terminals, they don’t have this problem. Make payments overseas more easily: Although neither contactless cards nor credit card PINs are extremely common in the U.S., they are becoming common overseas, especially in Europe. Indeed, many payment machines in Europe require either a chip or PIN-enabled card or contactless payment. Having a contactless credit card can thus make payment easier if you’re traveling abroad.
Disadvantages of Contactless Credit Cards
Lack of reliability: One of the main disadvantages of contactless credit cards is their occasional unreliability. Sometimes, contactless payments don’t go through even when the card reader signals that it accepts contactless cards. Challenges to using: Consumers may also have a hard time determining whether a credit card terminal is compatible with contactless payments, or where they are supposed to wave their card. Indeed, it may be a bit more challenging to figure out how credit card payments work than it would usually be with your more standard swipe or dip. Limited acceptance: Although contactless payment cards are on the rise, they aren’t accepted everywhere. This may particularly be the case at independent retailers.
Are Contactless Credit Cards Safe?
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