According to recent reports, experts predict that cashless transactions should grow by 20% by the year 2023. Financial institutions around the country are planning to upgrade the 1,50,000 point of sale (POS) machines to NFC capability. Cardholders can tap their credit cards to make a contactless payment for smaller and quicker purchases.
Nevertheless, cardholders often worry about frauds associated with this simplistic facility. Here a list of the protocols implemented to make contactless payment safer for their owners.
Payments made through contactless cards are limited to Rs.2,000 as per the RBI. Customers can make single or multiple payments up this amount. If the billed amount exceeds it, they will have to enter the PIN to complete the transaction.
Capping the limit ensures you are not charged with a significant amount of money in case of fraud. It also ensures the facility is used for small-scale transactions. Financial institutions providing the credit card also offer complete coverage for any loss incurred by this feature.
In order to make a contactless card payment, the card has to be physically close to the point of sale (POS) device. It has to be within a range of 2 cm to 4 cm for the transaction to take place.
This makes it increasingly difficult for scammers to make unauthorised transactions as they have to be comparatively close to the credit card.
Encryption in contactless card payment
Experts state that the technology responsible for the contactless transaction also comes with an encryption feature. A unique one-time code is created by the chip every time you use it for payment. No two codes are similar; as a result, each transaction has a unique ID making it difficult for impostors to make fraudulent transactions.
As explained by experts, the backbone of contactless payment feature depends on the radio frequency identification (RFID). The POS device emits a radio frequency field which powers the chip. The card interacts with the POS device to share an encrypted code which is valid for only that transaction.
In addition to the above, all top financial organisations offer zero-fraud liability cover to their customers. This facility ensures you are not charged for any fraudulent transactions. If the incident were reported to the financial institution within a given period, the deducted amount would be reimbursed.
The Bajaj Finserv RBL Bank SuperCard comes with such measures along with other In-hand security features, making it safe and secure for contactless transactions.
Tips to keep your credit card safe
? It is advised that you buy an RFID blocker wallet or case. This is to prevent skimmers from making transactions by bringing a POS device closer to your pockets.
? Even if someone managed to steal or clone your card, they would not have access to your card’s dynamic number generation feature. You can then proceed to change its PIN or block it all together without having to worry about any immediate loss from contactless payments.
? If you know how to check your credit card balance, it is advised that you do it thoroughly at the end of each billing cycle to detect any such transactions.
Several financial institutions offer credit cards with contactless payment facility. This makes it easier to buy household objects such as groceries, without having to enter your PIN repeatedly. The added security also ensures the card is not misused while letting consumers get the most out of their credit card.
Reports state there have been little to no frauds related to the contactless card payment system since its introduction in 2014. Nonetheless, these technologies ensure that it remains so in the future as well.