With the movement towards digitalization of financial transactions, credit cards are evolving every day. One of those developments is a credit card for Near Field Communication that aims to make payments easy, fast and secure.
What is NFC?
Near-field communication, or NFC, is a short-range wireless technology that allows the exchange of data from a certain distance. NFC-enabled devices have a silicon chip that helps complete transactions. This technology helps in contactless payments via credit cards, debit cards, smartphones and other devices
What is an NFC credit card?
NFC credit card uses Near Field Communication to make contactless payments. It tries to make your transactions easy and fast compared to a traditional credit card. It differs from a traditional credit card, where you have to swipe or insert the card to make payments.
An NFC transaction simply involves tapping your card on an NFC device. The short-range technology makes connections from a distance of a few centimeters. You can recognize an NFC card by the contactless logo or a WiFi symbol.
How does it work?
NFC technology works through radio frequency identification technology (RFID) which uses radio waves to exchange information. RFID uses radio waves to identify data and share information. It has two elements; tag and reader. The tag has a microchip and antenna that helps store and transmit data. The reader receives the signal from the tag and emits radio waves.
How do I use an NFC credit card?
Step 1: Present your credit card near the NFC terminal when the device signals you to do so.
Step 2: The NFC terminal reads your credit card details and processes the payments.
Step 3: As per RBI mandate, for above transactions ₹5,000, you will need to provide a PIN to complete the transaction.
In short, just like any other innovation in the financial field, NFC credit cards help make shopping easy. However, be aware of the risks associated with such transactions and avoid overspending because of the convenience they provide.
