Learn the benefits, risks, and precautions of how a non-contact payment card works

The Reserve Bank of India (RBI) has increased the limit for non-contact card payments to Rs 5,000. Its benefits are available from January 1, 2021. The facility has now raised customer concerns. This is because no pin code or OTP is required for shopping up to Rs 5,000 at a time in malls or stores. Payment is made as soon as the card is taken to the payment machine (POS). More PINs or OTPs will be used. This means that if someone else accepts your card, they will make a purchase for at least five thousand rupees at a time. By the time you find out about it, he may have blown more money out of your account.

Read more: These smaller banks are offering higher interest rates on FDs than large banks like SBI, HDFC.

This is how a non-contact card works

  • A special symbol is created on the contactless card and POS machine. On this machine the cards have to be placed or displayed at a distance of about four centimeters and money is deducted from your account. There is no need to swipe the card or insert a pin sert in such a situation.
  • Contactless card competition in banks
  • Recently, the National Payments Corporation of India Limited (NPCI) has been competing with banks to introduce debit cards without communication. Several other banks, including state-owned SBI and the central bank, have introduced contactless cards.

Most banks are safe

A large number of customers have been receiving debit / credit cards from various banks for some time with the features of Visa, MasterCard and American Express. These banks include banks like SBI, HDFC, ICICI, Central Bank, Axis and IDBI. Most banks are describing this as more secure in their ads and websites. He argues that with this feature the card stays in your hand and there is no risk of cloning. Also, three times faster payments are being claimed.

But the danger is not less

When asked about the security of communication cards, experts say that the security of these cards is a threat. They say that a stroke can be bought for at least five thousand rupees without a pin code. Another expert says that with this national card you can swipe five times a day. In such a situation, if your card is given to the wrong person, he can push you up to Rs 25,000 a day. However, the limit can be set through the bank app.

Promote cyber fraud

Cyber ​​security experts say such cards can make transactions insecure and promote cyber fraud. There is a need to bring more clarity about its protection and make customers aware. He says the current law is not enough in this case. He says non-contact cards are not as secure when issuing banks and firms claim to be completely secure.


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