Pros and Cons of Contactless Credit Cards

With the increasing pace of digitalization and convenience in the financial world, contactless payments are becoming more and more common. Let’s dive right into the upsides and downsides of this technology.

Advantages of Contactless Credit Cards

1. Quick and User-Friendly: Contactless credit cards are a major leap in making transactions swift and hassle-free. They eliminate the need to swipe your card, enter a PIN, or sign a receipt for smaller transactions. Just tap your card to the contactless reader and your payment is made within seconds.

Example: Imagine you’re rushing to catch a train and you want to grab a quick coffee before your journey. Using a contactless card at the café lets you make the payment in a snap and save valuable time.

2. Improved Hygiene: In the era of health consciousness, contactless payments have an added advantage. Since you’re not touching card terminals or handling cash, it minimizes the risk of germ transmission, making it a safer choice in public places.

3. Enhanced Security: Despite some concerns, contactless cards are pretty secure. They employ advanced encryption technology and generate a unique transaction code each time you use it, adding an extra layer of protection against fraud.

4. Widespread Acceptance: As time passes, an increasing number of retailers and services are accepting contactless payments. Especially for public transportation or drive-thrus where speed is critical, this technology is a boon.

Drawbacks of Contactless Credit Cards

1. Transaction Limit: To protect against fraud, contactless payments typically come with a cap on the transaction amount. For purchases above this limit, you will need to insert your card and enter your PIN, negating some of the speed benefits.

Example: Let’s say you’re out furniture shopping. The cost of a sofa may exceed your contactless limit, requiring you to insert your card and input your PIN to complete the transaction.

2. Risk of Accidental Payment: If your contactless card is in close proximity to a card terminal, there could be a slight chance of an accidental payment. This situation, though rare, might occur when you’re standing very close to the terminal with your card in your pocket.

3. Potential for Theft: If your card gets lost or stolen, unauthorized persons could potentially make purchases without needing your PIN. However, remember that there is typically a limit to these transactions, and banks usually offer protection against fraudulent activity.

4. Limited Acceptance in Some Places: While contactless technology is rapidly spreading, it’s not universally accepted yet. Some merchants may not have contactless terminals, meaning you’ll still need to use the traditional swipe or chip-and-PIN method.



1. What is a contactless credit card? A contactless credit card is a card that uses near-field communication (NFC) technology to make secure payments. You can make a payment by simply tapping the card near a contactless-enabled terminal.

2. How do I know if my card is contactless? Contactless cards have a symbol on them that looks like a sound wave. If your card has this symbol, it’s contactless.

3. Are contactless cards safe to use? Yes, contactless cards use the same secure network as chip cards. Each transaction generates a unique code that can’t be reused, adding an extra layer of security.

4. Is there a limit to how much I can spend using contactless? Most banks set a limit for contactless transactions to protect against theft. If your purchase exceeds this limit, you’ll need to insert your card and use your PIN.

5. What happens if I lose my contactless card? If you lose your card, you should report it to your bank immediately. Even though someone could potentially use your card without a PIN, there are typically limits on contactless transactions and most banks offer robust fraud protection policies.

6. Can I accidentally make a payment if my card is in my pocket and I’m near a terminal? Theoretically, it’s possible, but it’s extremely unlikely. You need to be very close to the terminal (usually less than 4 cm) to make a payment.

7. Do I need to touch the card reader with my card? No, you just need to hold your card within a few centimeters of the contactless symbol on the terminal.

8. Can I use my contactless card abroad? Yes, you can use your contactless card anywhere that has a contactless-enabled terminal. However, keep in mind that foreign transaction fees may apply.

9. Do all shops and services accept contactless payments? While many retailers and services are starting to accept contactless payments, not all do. It’s always a good idea to have an alternative payment method available just in case.

10. Can I still use my card normally if it’s contactless? Absolutely, if a terminal isn’t contactless-enabled, you can still use your card as you normally would by inserting it into the terminal and entering your PIN.