Transaction limit: ₹2,000
You might have noticed that your credit and debit cards sometimes get swiped without entering the personal identification number (PIN) if the transaction amount is below ₹2,000. This is possible on cards that have a Wifi symbol. Known as contactless cards, it uses near factor communication (NFC) technology, which allows you to tap and pay at the terminal. You can just wave your card and make the payment. However, the card has to be about 2-cm close to the point of sales (POS) machine. And if the transaction amount is above ₹2,000, the transaction can not made through the tap-and-pay option.
“Currently, there are over 28 million contactless Visa cards in India," said Murali Nair, vice president and head of business development, India, Visa.
Before opting for a contactless card, remember that you can’t deactivate the contactless payment option. “You can’t deactivate the contactless option on such cards because by nature, it is shipped with the contactless chip," said Sudipta Roy, head, unsecured assets and cards, ICICI Bank Ltd. However, some banks are looking to provide an option to deactivate, but this is not owing to concerns of fraud.
Fraud risk in control
“If there is a fraud on the card, the customer is completely protected because the bank has to mandatorily cover the loss," said Roy. “There have been no cases of contactless payment fraud since the cards were introduced in 2014." Ambuj Chandna, senior executive vice-president and head, consumer assets, Kotak Mahindra Bank Ltd, said, “You should know that the transaction will not be swiped simply when you pass a machine. It is not that your money will get deducted automatically. Contactless payment option is meant for small ticket-size transaction. The fraud risk is under control."