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Everything You Need to Know About a Contactless Debit Card

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Created on
August 1, 2023


What’s Inside

In today's fast-paced world, debit cards make it easier for customers to make secure transactions. This means you no longer need to carry cash around. You can also experience contactless payments with the updated version of a debit card. This contactless card allows users to make transactions without entering a PIN code.  

In this blog, we'll take a deep dive to understand more about a contactless debit card and how it works.  

What is a Contactless Debit Card  

A contactless debit card is an upgraded card encrypted with radio frequency identification technology (RFID). Some debit cards also use near-field technology which is called an NFC card.  

These contactless cards work by streamlining the payment process without having to enter your PIN code.  

How Does a Contactless Debit Card Work? 

Now that you know what is a contactless debit card, let's understand how these cards work. The radio frequency identification technology allows a card user to pay without having to hand over the card to the payee.  

To make a secure payment with your contactless card, all you need to do is tap your card on the card reader. The chip on your card makes it easier by including the usual debit card details like your: 

  • Card Number 
  • Expiration Date  
  • CVV  
  • Magnetic Strip 
  • Signature Strip 

Moreover, this process takes less than a minute! Your transaction is approved, and secure payment is made in no time.  

5 Benefits of Using a Contactless Card 

Here are a few advantages of using a contactless debit card: 

1. Speed 

A contactless debit card allows users to make payments in no time. You simply have to tap your card against the card reader and the transaction will be successful. Additionally, you don't even have to enter the PIN code or hand over your card to complete the payment.  

2. Convenience 

Because of this new user-friendly design, you can conveniently complete the payment with no hassles. There is no need to carry cash around or worry about forgetting your PIN code at the time of payment. 

3. Security  

Contactless cards are more secure than you know. You are in charge of completing the payment. To make a secure payment, simply tap your card on the reader without handing it over to anyone. In case of an unfortunate event, you can immediately block your account to prevent a disaster.  

4. Hygiene and safety  

A contactless card addresses people's concerns regarding their health due to the COVID-19 pandemic. This means you can avoid direct contact and still make the payment.  

5. Wide acceptance  

Finally, this form of payment is widely accepted around India. So, you don't have to worry about carrying around cash notes. From supermarkets to small shops, every merchant has started leveraging the benefits of contactless cards. 

Withdrawal Limit of a Contactless Debit Card   

Every debit card issuer has a certain withdrawal limit on a debit card as a safety measure. Here's the general withdrawal limit of a contactless card. 


Withdrawal Limit  

Daily cash withdrawal limit - ATM 

INR 25,000/-  

Daily shopping limit  

INR 50,000/- 

Total daily limit  

INR 75,000/- 

Per transaction limit for contactless payments 

INR 5,000/- 

Maximum per day limit for contactless payments  

INR 15,000/- 

Summing Up 

Now that you understand what is a contactless debit card and its benefits, you can proceed towards your journey of seamless banking. Additionally, you won't have to deal with the nuisance of carrying around cash all the time.  

Get a Contactless Card for your Limitless Dreams

The Fi-Federal co-branded debit card offers you several features, including zero Forex charges on select plans, the ability to make contactless payments using the 'Tap and Pay' feature, and transaction limits that you can set from the app. In addition, the card provides you with a range of offers from top brands in food, shopping, travel, and entertainment. You can also easily freeze or unfreeze your card from the app, making it a convenient option for those who may have trouble sticking to a budget. 

Frequently Asked Questions  

1. Is contactless debit card safe? 

Yes, your contactless debit is safe and convenient to use. In case you misplace your card, you can immediately freeze your bank account.  

2. Does contactless debit card require PIN? 

No, you don't need to enter your PIN code to transact with a contactless card. 


Fi Money is not a bank; it offers banking services through licensed partners and investment services through epiFi Wealth Pvt. Ltd. and its partners. This post is for information only and is not professional financial advice.
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