What is a contactless debit card?
Contactless debit cards have become a practical and safe replacement for conventional payment methods at a time when technology is drastically changing the way we live. These cards have changed how we manage our finances since they enable quick and smooth transactions. Kotak's contactless debit card offers unprecedented simplicity while upholding the highest levels of security. They were created to fulfil the demands of the contemporary customer. Let's go deep into the world of contactless debit cards, learn what is a contactless debit card is and look at their benefits and features. We will also cover how they're transforming the way we go about our everyday business.
Contactless debit cards use near-field communication (NFC) technology to facilitate rapid and simple transactions. Due to this revolutionary feature, cardholders can now make transactions by merely touching or waving their card in front of an adequate point-of-sale (POS) terminal. Transactions have become easier and quicker because there is no need to swipe the card or enter a PIN physically.
Features and benefits of using contactless debit card
Let's explore the features and benefits of contactless debit cards, concentrating on their applicability and advantages for users.
1. Ease of use
You can finish your transactions with a single tap without swiping your card or entering your PIN on the card swipe machine.
In India, people prioritise the security of financial transactions, which contactless debit cards answer diligently. To ensure secure data transfer and guard against unauthorised access, these cards make extensive use of modern technology. Since the NFC debit card is always in your grasp while being used to make a purchase, the risk of NFC ATM card cloning or skimming is substantially reduced.
3. Better operational efficiency
Due to their ability to facilitate transactions more quickly and reduce wait time at payment terminals, contactless debit cards provide higher operational efficiency. These cards provide quick and easy checkout transactions at restaurants, retail outlets, and online platforms since they can process payments in a couple of seconds.
4. Fraud Protection
To protect against fraud, contactless debit cards have several security features. The risk of outsiders intercepting or interfering with the data transferred during a transaction is minimised by encryption. Furthermore, contactless payments can only be used in close proximity. It prevents transactions from being done without the cardholder's knowledge or agreement.
5. Loyalty Benefits
A contactless debit card is popular because of its simplicity and security. It also frequently includes enticing reward programmes and incentives. Cardholders who participate in these programmes get many rewards, including cashback offers, reward points, special discounts, and access to exclusive privileges. Consumers can maximise their savings and take advantage of special offers using a contactless debit card.
Must Read: What is a Debit Card and How it works?
Contactless debit card limits
To accommodate the wide range of financial needs of the people, contactless NFC debit card limits have been carefully planned.
|Average quarterly Balance||NA|
|Daily Cash Withdrawal Limit||Rs.25,000|
|Daily Shopping Limit-PoS and Internet||Rs.50,000|
|Total Daily Limit||Rs.75,000|
|Per transaction limit for contactless mode||Rs.5,000|
|Per day maximum transaction for contactless mode||Rs.15,000|
|Maximum number of contactless transactions per day||5|
How do contactless debit cards work?
Near Field Communication (NFC), a unique technology used by contactless debit cards, enables quick and safe transactions. A small chip is incorporated in the contactless debit cards that exchange payment data wirelessly.
This chip uses Radio frequency identification to secure communication between the two devices. It is initiated when the cardholder approaches the terminal with the WiFi debit card within a few centimeters to make a transaction. The Kotak contactless debit card information is then transferred and confirmed, enabling a speedy transaction.
Why use contactless debit cards?
Searching for cash or waiting for chip-and-pin authentication is no longer necessary. Through contactless debit cards, Payments can be made quickly by tapping or waving the wifi debit card in front of a contactless terminal, saving both customers and businesses valuable time. This swift and smooth experience is extremely useful in crowded marketplaces or congested transit hubs.
Contactless debit cards are quite useful for consumers who often make small transactions. The NFC ATM card is the best option for regular purchases like buying groceries, getting a coffee or paying for public transit. Contactless payments streamline the purchase process and remove the burden of counting cash or signing receipts by eliminating the need to carry a specific amount or enter a PIN.
Contactless debit cards provide several benefits for Indian customers. The swift and hassle-free experience of making payments by tapping or waving the card in front of a contactless terminal saves valuable time, especially in crowded marketplaces or congested transit hubs. Using contactless debit cards brings up opportunities, streamlining regular transactions and revolutionising finances.
Is a contactless debit card safe?
To safeguard the security of your transactions, contactless debit cards are built with advanced safety features. The payment terminal and the card can exchange safe data using near-field communication (NFC) technology. Furthermore, contactless debit cards have built-in security features like tokenisation and encryption that preserve your card information during transactions.
Can we use contactless debit cards at atms?
No, contactless debit cards cannot be used to make cash withdrawals from ATMs. The main purpose of contactless ability is to facilitate rapid and simple payments at point-of-sale terminals. You would need to place your contactless debit card into the card slot and proceed with the standard ATM withdrawal process to withdraw cash. ATM transactions do not use contactless technology.
Does a contactless debit card require a pin?
Most contactless transactions don't need a PIN. The common method for authorising contactless payments is "tap-and-go," which requires just holding your contactless debit card close to the payment terminal to start the transaction. However, the system can request a PIN to offer an extra layer of protection for specific high-value transactions or extraordinary situations. The payment terminal would urge you to enter your PIN in these situations.
Can i withdraw money using a contactless debit card?
Yes, but it's important to realise that ATM transactions normally require you to enter your card into the machine. In contrast, contactless technology is primarily intended for use at point-of-sale terminals. You must insert your card, enter your PIN, and choose the desired withdrawal amount in accordance with regular procedures to withdraw money from an ATM.
Which banks provide contactless debit cards?
In India, several banks provide contactless debit cards. It is essential to check with your bank to find out if contactless debit cards are available and what requirements must be met to get one.
What are the disadvantages of contactless debit cards?
While using contactless debit cards could be convenient, knowing the possible drawbacks is important.
Limited acceptance: Despite the rise in the popularity of contactless payments, not all retailers or payment terminals may be capable of using this technology. You must use the card's magnetic stripe or chip to purchase under such circumstances.
Transaction limits: The bank or card issuer frequently imposes transaction limitations on contactless payments. If the transaction value exceeds the limit, you must use the card's chip, magnetic stripe, or PIN to pay.
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This Article is for information purposes only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. Bank makes no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Newsletter. The information contained in this Article is sourced from empanelled external experts for the benefit of the customers and it does not constitute legal advice from Kotak. Kotak, its directors, employees, and contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein.