Contactless Debit Cards

How do Contactless Debit Cards Work?

Contactless debit cards work using the principle of NFC or Near Field communications. This technology uses radio transmission to establish contact when the cards are waved near a POS terminal. So, customers with Contactless debit cards will be able to make transactions by just waving a card instead of swiping it. One big advantage of having a contactless debit card is the fact that the cardholder will also be able to make normal transactions by dipping or swiping the card.

Features and Benefits of Using Contactless Debit Card

Given below are the key benefits of using contactless debit cards:

1. Ease of Use: The main benefits of contactless payment include faster transactions and shorter queues at the checkout. At the checkout, managing cash is not a concern. Additionally, you are relieved from the hassle of entering your PIN.
2. Safety: Compared to other payment methods, tap-to-pay technology is more dependable and secure. Through encryption and adaptive data technologies, the chip technology safeguards you against any fraudulent purchases.

1. Better Operational Efficiency: Tap-to-pay technology adoption is faster and requires a smaller workforce. Businesses spend less time operating card readers or counting cash owing to contactless payments.
2. Fraud Protection: Technology for contactless payments is secure and encrypted to prevent any phishing or cybertheft. Businesses get their payments without any problems because of improved transaction security. Additionally, the majority of issuing banks safeguard contactless payments against fraud.
3. Loyalty Benefits: The majority of reward programs that retailers provide are compatible with your tap-to-pay smartphone. At the time of payment, they automatically offer discounts and loyalty points. Incentives and rewards are also provided by some banks when you use the contactless debit card payment option.

Contactless Debit Card Limits

The table given below explains the limit of a contactless debit card: 

Why use Contactless Debit Cards?

1. Speed and convenience - market research studies report that the average time in POS have been reduced by 30% to 40%.
2. Contactless debit cards are 63% faster than normal cash transactions and 53% faster than the normal card transactions.
3. Contactless debit cards equates to better convenience for customers and increase in sales volume, better customer servicing for merchants.
4. Contactless payment systems use sophisticated chip technology and multiple levels of encryptions to guarantee a safe and secure transactions.
5. There is less or no chance that the debit card will be lost or misplaced during the course of transaction because it will be in the customer’s hand.
6. Contactless debit cards can be used at over 10 lakh merchant stores in India and over 30 million merchant establishments across the world.
7. Also, the contactless debit card can be used for other purposes like ATM cash withdrawal, secure online shopping and safe e-commerce purchases.

Major Banks That Offer Contactless Debit Cards

The following are the banks which offer contactless debit cards to its customers:a

SBI InTouch Contactless Tap and Go Debit Card Overview

1. SBIIntouch Tap and Go contactless debit card from SBI can be used more than 30 million merchants across the world and more than ten lakh people in India have availed this card.
2. You can book train tickets, flight tickets, movie tickets, pay utility bills, and earn reward points.
3. The customers can also get bonus points on the first three transactions. You can redeem freedom reward points for exciting gifts.
4. Get one reward points for every transaction up to Rs.200.

Daily Withdrawal Limit

1. ATMs: Rs.40,000
2. POS: Rs.75,000

Axis Bank Secure+ Contactless Debit Card Features & Benefits

1. In case of any sort of financial fraud, the customers will get protection up to Rs.75,000 cover.

1. The customers can avail discounts of up to 15% at partner restaurants.
2. Receive emergency hotel and travel assistance.
3. Avail personal accident insurance of up to Rs.5,00,000.

Features of Axis Bank Secure + Debit Card

1. Issuance fee: Rs.200

1. Replacement fees: Rs.200
2. Annual fees: Rs.300
3. Daily purchase limit: Rs.1.25 lakhs
4. Daily ATM withdrawal: Rs.50,000
5. My design: Rs.150 extra

1. Personal accident insurance cover: Rs.5 lakh

ICICI Coral Paywave Contactless Debit Card

1. Enjoy quick and contactless payments.
2. For re-issuance of the card, the charges are Rs.200 + 18% GST.
3. Rs.599 + 18% GST will be charged as joining fees for the first year.

1. The annual fee for the second year is Rs.599 + 18% GST.

Withdrawal Limit of ICICI Coral Paywave Contactless Debit Card

1. Domestic ATM withdrawal limit: Rs.1 lakh
2. Domestic PoS transaction: Rs.2 lakh
3. International ATM withdrawal limit: Rs.2 lakh

1. International PoS transaction: Rs.2 lakh

Kotak Privy League Contactless Platinum Debit Card Features

1. The cardholders will have access to all ATMs and merchant establishments which accept VISA cards in India and abroad.
2. Enjoy fuel surcharge waiver across petrol pump across the country.
3. The debit card also provides offers and discounts at Merchant’s outlets across various categories like shopping, travel, etc.

1. The card is issued to Privy League Prima, Magna, and Maxima (NRI) customers.
2. The cardholders will get access to over 1,000 most luxurious VIP airport lounges in more than 130 countries and 500 cities.

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