Banks offer a contactless debit card facility as well, where you do not need to remember your debit card PIN and still carry out a cash transaction at Point of Sale (POS) machine.
Imagine going to grocery mart or restaurant, and you decide to pay through your debit card. But unfortunately, you have forgotten your debit card PIN. In such cases, you might feel frustrated and embarrassed, however, now you can eliminate situations like these. How? Well, banks offer a contactless debit card facility as well, where you do not need to remember your debit card PIN and still carry out a cash transaction at Point of Sale (POS) machine. Not only just forgetting PIN digits, but contactless debit card facility also comes quite handy as it is faster and convenient way to pay for every day purchases. It is a secure, contactless chip technology built to help you spend less time at the cash register and give you the freedom to do the things that matter most to you.
Notably, one can carry contactless debit card transaction depending upon limits specified by banks. But, one does not need any PIN details, if a cash transaction is upto Rs 2,000, as per RBI guidelines.
Here’s how a contactless debit card works!
SBI on its website explains that, contactless Debit Card is secured with a Contact & Contactless Chip along with Magstripe and NFC antenna. The NFC antenna is used for Contactless transactions. The Chip and the magstripe portion is used for purchases at POS and transactions at ATM and where Contactless payments are not accepted.
Here’s a step-by-step guide to use this mode, as per HDFC Bank.
Step 1: Look for the contactless logo at the point of sale. The logo of contactless debit card looks like:
Step 2: The cashier enters your purchase amount into the terminal. This amount will be displayed on the contactless reader.
Step 3: Hold your card over the reader or at the POS at close range (less than 4 cm from where the contactless logo appears).
Step 4: Four green indicator lights or a beep sound will indicate when the transaction is complete
A debit card PIN is not required if the transaction value is upto Rs 2,000. However, PIN is mandatory above Rs 2,000 per transaction. It needs to be noted that, maximum 5 transactions are allowed via this mode.
This payment mode is very useful for places like fast-food joints, petrol stations, movie theatre & for low ticket size transactions as it requires no dipping, swiping, entering PIN or fumbling for cash. You’re ready to go in just a few seconds.
The service offers security, as the debit card is always with you which greatly reduces the risk of card loss and fraud through counterfeit/skimming.
A contactless card has its own, unique, built-in, secret key, which is used to generate a unique code for every contactless transaction, thus making it more secure.
Also, there is no need of cash/coins for small ticket everyday purchases.