Back5 things to know about SBI's and Axis Bank's contactless payment devices
Axis Bank offers a wristband, a keychain, and a small device, called loop, that users can fit on a watch's strap. In the case of SBI, the customer must purchase a Titan watch for contactless payment
PremiumOn Friday, Axis Bank launched a range of devices that allows its customers to make contactless payments. Last year, the State Bank of India (SBI) had launched a contactless payment solution with Titan.
Axis Bank offers a wristband, a keychain, and a small device, called loop, that users can fit on a watch's strap. In the case of SBI, the customer must purchase a Titan watch for contactless payment.
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Here are a few things you should know about contactless payment from SBI and Axis Bank.
1. Titan pay watches start at ₹2,995. For Axis Bank, the devices start at ₹750. Both devices use near-field communication or NFC for payments. The devices, therefore, need not be smart devices with other on the go functionalities. They have an NFC chip embedded in them. For payments, these devices are linked with the customer's bank account.
2. Axis Bank offers 10% cashback only on the first three transactions within 30 days of the device's issuance, and the total spend must be ₹600 or more. The max cashback will be ₹100. There are also cashbacks on the fifth transaction every month, where the customer must spend at least ₹200, and the maximum cashback that the bank will offer is ₹100.
In the case of SBI, the watch is linked to the bank's YONO app. Customers get applicable discounts and cashbacks. For both the banks, the service works on MasterCard-enabled point of sale terminals.
3. Based on the Reserve Bank of India's guidelines, transactions up to ₹5,000 will happen without entering a PIN. For transactions above this limit, users will need to authenticate payments using their PINs. Only up to five transactions in a day can be done without a PIN, even if they are below the ₹5,000 limit.
4. Axis Bank also offers a fraud cover. It is available if the fraud happens due to the bank's deficiency or an act done by a third-party. In the case of negligence by the customer, the insurance cover will not be valid. Third-party breaches include SIM duplication fraud, identity theft frauds, account takeover fraud, and skimming or card cloning. Also, the customers must inform the bank within three days for zero liability.
For SBI, too, similar conditions apply as they are part of RBI's regulations, wherein the bank must compensate customers in case of frauds that occur without the customer's negligence.
5. There's an annual fee of ₹500 for contactless payment devices, according to Axis Bank's website. In the case of SBI, it's not clear whether there's an annual fee.
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