What is a contactless credit card?

Credit Cards

Lee Huffman

Robin Saks Frankel

"Verified by an expert" means that this article has been thoroughly reviewed and evaluated for accuracy.

BLUEPRINT

Published 7:51 a.m. ET March 14, 2023

Editorial Note: Blueprint may earn a commission from affiliate partner links featured here on our site. This commission does not influence our editors' opinions or evaluations. Please view our full advertiser disclosure policy.

Getty Images

In today's age of reducing germs and speeding up transactions, many card issuers are turning to contactless credit cards. A contactless credit card doesn't require the user to swipe or insert their card in a credit card reader. Instead, you’ll simply tap your card on the reader to pay for your transaction. In this article, you’ll learn how contactless cards work, how to tell if you have one and where they can be used.

A contactless card is a credit card that incorporates radio-frequency identification (RFID) technology to complete payment transactions. The RFID signal enables the credit card to communicate with a nearby credit card reader to share information necessary to approve the charge. According to Capital One, an RFID transaction is ten times faster than swiping or inserting your credit card. Additionally, it is as secure as using a chip-enabled card and allows the user to keep their hands off the card reader.

There are many ways to use a credit card to pay for a purchase – swiping, inserting, mobile wallet, contactless or manual entry. Contactless payments are relatively new and many card issuers are rolling out this feature on their credit cards.

For readers who are familiar with using their phone as a mobile wallet, contactless cards work very similarly. When making a payment, contactless cards work by holding or tapping your RFID-enabled credit card on a contactless-enabled card reader. With this technology, you no longer have to swipe your card or insert your chip.

The downside is that cardholders must know where to hold or tap their cards. On credit card terminals, the RFID reader is generally at the top of the machine. When getting gas, the reader is usually above where you’d normally insert your card. Retail touchscreen terminals often have a separate RFID reader attached by a cable.

Contactless payment features are not yet available on every credit card. If you’re wondering if your credit card is RFID-enabled, there's a tell-tale sign. Either on the front or back of your credit card, there will be a symbol that looks like a sideways WiFi symbol. It is a distinct mark with four curved lines sorted from smallest to largest.

If you do not have a contactless card, you still may be able to make contactless payments with your payment-enabled watch or mobile phone. Many of these devices offer Apple Pay, Google Pay or Samsung Pay when you load your credit card information into your apps.

As this technology rolls out to credit card users, businesses are updating their credit card terminals to accept this form of payment. While you may prefer to use contactless payment at your favorite restaurant or retail store, it may not yet be available.

When making your payment, look for the same contactless payment symbol on the store's checkout terminal. The terminal may show the sign on the payment screen or on the physical device. Additionally, some highlight this payment option with the words "Tap to pay." If you have any doubts, ask the cashier if they accept contactless payments.

Yes, contactless payments have the same security features as inserting your card due to its contact chip. For every payment, your credit card generates a one-time code that reduces the potential for fraudulent transactions. Contactless cards must be within two inches of the terminal in order for a transaction to take place, which makes it difficult for accidental transactions to occur.

With the popularity, convenience and security of contactless credit cards, most banks are rolling out this functionality in their new cards. If your existing credit card does not have contactless payments, call customer service or secure message to ask if newer versions of your card do. If that's the case, ask customer service to issue a replacement card.

If you have a credit card that does not offer contactless payments, you should consider getting a second card that does offer this feature. This is also a good time to find a new card that earns better rewards or includes additional benefits. You may even be able to receive a welcome bonus as a new cardholder.

No, the merchant must initiate a transaction before a purchase can be made. Even if you accidentally bump the reader with your contactless card, you won't make a purchase if the merchant hasn't initiated a transaction. You can only be charged once per transaction, even if you have multiple contactless payment cards nearby.

Contactless credit cards have a distinct symbol on them to denote this functionality. The symbol looks like a sideways WiFi symbol with four curved lines. Depending on the card issuer, the symbol may be on the front or back of your credit card.

You can use your contactless credit card after the merchant has initiated the transaction. Look for the appropriate spot to tap your card on the reader. If you’re having trouble, ask the cashier for help.

As new technology is released, criminals attempt to steal money and credit card information from unsuspecting users. Skimming from a contactless card is when a criminal tries to get close to your card with a hidden reader to steal your info. Visa says that the device must be within two inches of your contactless card in order for a transaction to take place. However, each transaction generates a one-time, transaction-specific code, which makes it unlikely that your contactless card can be skimmed.

Yes, contactless cards have the same safety and fraud-prevention tools as chip-enabled credit cards. Their technology prevents duplicate transactions and one-time codes minimize the potential for fraud. These cards also encourage personal safety by limiting your need to touch frequently-used surfaces. If there is fraud on your card, most banks have a zero-liability policy on unauthorized transactions.

Blueprint is an independent publisher and comparison service, not an investment advisor. The information provided is for educational purposes only and we encourage you to seek personalized advice from qualified professionals regarding specific financial decisions. Past performance is not indicative of future results.

Blueprint has an advertiser disclosure policy. The opinions, analyses, reviews or recommendations expressed in this article are those of the Blueprint editorial staff alone. Blueprint adheres to strict editorial integrity standards. The information is accurate as of the publish date, but always check the provider's website for the most current information.

Lee Huffman

Blueprint

Lee Huffman spent 18 years in banking and investments and now uses that insider knowledge to write about credit cards, travel, and other personal finance topics. Lee enjoys showing people how to travel more, spend less, and live better through the power of travel rewards. You can connect with him at BaldThoughts.com.

Robin Saks Frankel

Blueprint

Robin Saks Frankel is a credit cards lead editor at USA TODAY Blueprint. Previously, she was a credit cards and personal finance deputy editor for Forbes Advisor. She has also covered credit cards and related content for other national web publications including NerdWallet, Bankrate and HerMoney. She's been featured as a personal finance expert in outlets including CNBC, Business Insider, CBS Marketplace, NASDAQ's Trade Talks and has appeared on or contributed to The New York Times, Fox News, CBS Radio, ABC Radio, NPR, International Business Times and NBC, ABC and CBS TV affiliates nationwide. She holds an M.S. in Business and Economics Journalism from Boston University. Follow her on Twitter at @robinsaks.

Credit Cards Louis DeNicola

Credit Cards Emily Sherman

Credit Cards Eric Rosenberg

Credit Cards Ariana Arghandewal

Credit Cards Emily Sherman

Credit Cards Rebecca Safier

Credit Cards Rebecca Safier

Credit Cards Chauncey Crail

Credit Cards Robin Saks Frankel

Credit Cards Jamie Johnson

Credit Cards Toree Roy

Credit Cards Robin Saks Frankel

Credit Cards Robin Saks Frankel

Credit Cards Robin Saks Frankel

Credit Cards Chauncey Crail