Contactless ATM Card, These are the Benefits and How to Use It

JAKARTA – Fitur contactless embedded in credit cards and debit cards is one of the innovations in the field of technology that can make financial transactions easier. This contactless payment technology utilizes Near Field Communication (NFC), which is now the choice of many people to carry out transactions.

According to Investopedia, contactless payments have been around since the 1990s with only a handful of merchants and retailers using this technology during that period. Since then, this technology has spread and is used by thousands of banks, credit card companies, merchants and retailers around the world.

The South Korean Transit Authority offers one of the world’s first contactless payment systems. Launched in 1995, the system became known as UPass, offering passengers a quick and easy way to pay for bus travel with a contactless system.

This payment technology allows credit and debit card holders to carry out transactions simply by approaching or tapping on the EDC machine with the contactless logo. Contactless transactions are included in transaction payment authorization available in various card-based financial products, smartphones and other mobile devices.

The media used is a chip card that has NFC which allows transactions to occur without depending on the internet network. Contactless technology aims to ensure that cards do not need to change hands when carrying out financial transactions.

This means that the card will remain in the owner’s hands, so the cashier cannot see important data such as card number, valid thru, 3 digit CVV and so on.

How a Contactless ATM Card Works

Contactless ATM cards allow consumers to pay for goods and services using a debit card or credit card with RFID technology also known as a chip card or other payment device without needing to swipe, enter a personal identification number (PIN), or sign the transaction.

In general, the number of transactions on a card is limited for contactless payments. The amount allowed for contactless transactions varies by country and bank.