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The Technology Behind Contactless Credit Cards

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Created on
May 5, 2023


What’s Inside

According to recent statistics, more than 60% of the transactions in India are less than ₹2,000. Since modern credit cards lend the best technology for such transactions, you can use them without ever needing to swipe or insert them.

Throughout this piece, you’ll learn how contactless credit cards work and how to issue one for yourself.

What is a Contactless Credit Card?

A contactless credit card is akin to a mobile wallet; transactions are possible without inserting the card into a POS machine. These days, there is a contactless credit card reader on most POS machines, and you need to hold or tap the card on the card reader to make the transaction.

Contactless cards use Radio Frequency Identification (RFID) technology, which allows the card reader to make the transaction by tapping the card. You can conveniently spot a contactless credit card in the presence of an EMV chip. It’s usually exposed in a bright yellow like a SIM card. If a retail outlet does not have the latest POS machine that supports contactless readers, the transaction could be done by inserting or swiping the card. 

How to use a Contactless Credit Card?

To use the contactless feature of your card, your credit card must support the feature. Follow the steps mentioned below.

  1. If your credit card has four curved lines present (similar to a Wi-Fi insignia), your card supports contactless payments.
  2. Hold the card 1-2 inches from the contactless symbol.
  3. Once the payment has been approved, you shall receive a confirmation on the card reader and an SMS on your registered mobile number. 

Benefits of Using a Contactless Credit Card

Fast Transactions

Transactions of up to ₹2,000 can be done without an ATM PIN, making the process faster.


The contactless credit card is as secure as chip cards and more secure than magnetic stripe payments. In addition, every transaction creates an OTP to make it safer.

Loyalty Benefits

Most of the reward points retailers provide are compatible with your tap-to-pay cards, and while paying, you can automatically get discounts and loyalty points.


A contactless credit card can be used at restaurants, grocery stores, retail outlets, and other merchants with contactless technology, making payments easier than ever. Still, it helps to have an RFID-protection wallet that blocks jammers and illegal scanners. That way, you can’t conduct transactions when you don’t want to.

Looking for a Credit Card that not only offers contactless transactions but also provides rewards on every purchase? Look no further than the Credit Card from Fi. It grants you a welcome bonus worth over ₹5000 alongside discounts on more than 20 brands.

Frequently Asked Questions

1. How do I know if I have a contactless credit card?

If your credit card has four curved lines present on the front, it supports contactless transactions. Another method to identify is an EMV chip exposed at the surface. 

2. What are the advantages of contactless credit cards?

Contactless credit cards allow you to do the transaction without entering your ATM PIN, making most transactions seamless. They can last past their validity period and are more resilient to external elements like dust or water.


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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