Contactless credit cards: What they are & how they work
Contactless credit cards allow you to pay by tapping the card against or near a point-of-sale terminal instead of swiping the magnetic stripe or inserting the card into a chip reader. There are contactless versions of both debit and credit cards, and they’re considered even more secure than swiping or inserting your card.
What you’ll learn:
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Contactless credit and debit cards let you make purchases by tapping or holding your card over a payment terminal.
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Using tap to pay can be a more convenient and secure way to make purchases than swiping or inserting your credit card.
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Credit or debit cards that have contactless technology feature a symbol of four curved lines that look a bit like the Wi-Fi symbol turned on its side.
What is a contactless credit card?
Contactless credit cards allow you to “tap and go” by using radio frequency identification (RFID) or near-field communication (NFC) technology. The RFID or NFC tech reads your card when you hold it close enough to a point-of-sale terminal. Tapping is up to 10 times faster than swiping, inserting or using cash. Plus, it keeps your info secure and your hands off the card reader.
Many of Capital One’s U.S.-issued credit cards and debit cards now feature contactless technology. And if your credit card is attached to a digital wallet like Apple Pay® or Google Pay®, you can also make payments by tapping your smartphone, smartwatch or other connected device.
How can I tell whether my credit card is contactless?
To check whether your Capital One card is contactless, just look for the contactless symbol on the front or back of your card. The contactless symbol is four curved vertical lines that get bigger from left to right—like the Wi-Fi symbol turned on its side.
How does contactless payment work?
Contactless cards use RFID and NFC technology to communicate with a card reader when they’re held close to it during a transaction. The reader securely authenticates your card information. Then the merchant’s point-of-sale system sends the transaction to the card issuer, like Capital One. The issuer then analyzes the transaction before approving it.
That might seem like a lot of steps. But the tap-and-go process usually takes less than a second, which is quicker than inserting or dipping a chip card—and way faster than using cash.
Contactless cards usually have an EMV chip along with the credit or debit card number, expiration date, security code and magnetic stripe that normally appear on a card. These features give cardholders several ways to check out. You can still use your card by swiping or using the chip reader if a store doesn’t have the tap-and-go technology.
How to use a contactless credit or debit card
Contactless payments work the same way regardless of card network. Here’s how to use a contactless credit card:
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Look for the contactless symbol on the card reader. The four curved lines that appear on your card should also appear on contactless-enabled card readers.
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When prompted, hold the card within 1 to 2 inches of the contactless symbol.
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If your purchase is approved, you’ll receive confirmation from the reader—typically a beep, green light or check mark.
Once you know how to use contactless credit and debit cards, it takes just a few seconds to complete the payment process.
Where can I use my contactless credit or debit card?
There are so many places where contactless cards can be used. Thousands of merchants in grocery stores, fast-food restaurants, convenience stores and gas stations across the country now support contactless technology. And public transit systems in cities like Chicago, Miami, New York City and Portland let riders pay fares using contactless cards too.
Contactless cards FAQ
Still have questions about how contactless cards work? Here are answers to some frequently asked questions:
Are contactless credit cards secure?
Contactless cards are considered safer than magnetic stripe cards. That’s because contactless cards have a chip that creates a one-time code for each transaction to accompany your payment information. Cracking the algorithm providers use to issue this code is much harder than duplicating a magnetic stripe.
How do I protect my contactless credit card?
You can help protect your contactless card just like you would any other debit or credit card. There are many different credit card security features that can help you keep your money safer. And you can learn more about how to prevent identity theft to help keep all your information safer too.
How many times can you use a contactless card in a day?
You can use your contactless credit card as often as you would any other debit or credit card. There isn’t a limit on how many times you can use a card because it’s contactless.
What happens if you lose your contactless card and someone uses it?
You should report your card as lost or stolen as soon as possible. That goes for any card, whether it’s contactless or not. The Fair Credit Billing Act (FCBA) says that your liability for fraudulent credit card charges tops out at $50. But that’s only if the fraudulent charges are investigated and verified. And for that to happen, you have to report them.
Key takeaways: Contactless credit cards
Using contactless credit and debit cards at checkout can speed up your time at the register. Plus, it can be a more secure way to pay.
Interested in finding more ways to make online shopping convenient and secure? Learn how things like virtual card numbers let you shop online without giving merchants your actual card number.
