The pros and cons of contactless cards

Quick insights

• Contactless credit cards are typically a fast and secure way to pay.
• Contactless cards are widely accepted forms of payment in the US, Asia and Europe.
• Your contactless card may have a spending cap on transactions.

Contactless credit cards have become an increasingly popular way to pay. If you’ve only opted for swiping or inserting your card at a payment terminal, you might want to try tapping with contactless credit card. Here are a few pros and cons of using contactless cards to consider before your next tap and go experience.

Understanding contactless cards

Contactless credit cards allow you to pay at an eligible point-of-sale terminal with just a wave of your card. There is no need to swipe or insert. This type of transaction—often called “tap to pay” or “tap and go”—can be a quick and convenient way to pay.

Not all credit cards are contactless, although most card issuers have made them the default type of card they issue. These cards work by using near-field communication and a short-wave electromagnetic signal containing your credit card information. When a contactless card is held or waved within a few inches of a compatible terminal, your payment information is transmitted.

Chase contactless cards

Virtually all Chase credit cards are contactless. If your card is contactless, it will have a symbol on the front or back that looks like a Wi-Fi icon turned on its side. If you see that, you likely can use your card when making contactless payments.

If you’re unsure if your card is contactless, you can try waving it by a contactless payment terminal to see if it works. If not, you may be able to swipe or insert your card as an alternative payment method.

Advantages of contactless cards

There are many advantages of having and using a contactless credit card. Some advantages include:

• Speed: Using contactless cards is typically faster than inserting or swiping your card. Payments process quickly because they often do not require the card holder to enter a pin to complete the transaction.
• Wear and tear: There is no direct contact with the payment terminal when making a contactless payment. Not having to insert or swipe your card means it will experience less wear and tear.
• Health: You’re less exposed to public surfaces and potential germs when you don’t have to touch the terminal to complete the transaction. Because many contactless cards do not require a pin code to complete a transaction, you’ll have less contact with the payment terminal.
• Acceptance: Contactless cards are widely accepted by business large and small, both in the US as well as Europe and Asia. They have become a widely accepted form of payment since 2020.
• Security: Contactless cards have security features, such as encryption and tokenization, to help protect your payment information while making payments.

Considerations when using contactless cards

Even though contactless cards are generally accepted and secure, there are some things you may want to consider before using a contactless card.

Technology glitches

Like any technology, it’s possible that contactless cards and terminals can experience glitches and outages. It may be wise to have an alternative payment option on hand just in case this happens while you’re checking out at a store.

Transaction limits

Some contactless cards may cap the amount you can spend per transaction. Because contactless cards sometimes do not require a pin to complete a transaction, this can be a way to prevent large fraudulent transactions. Check with your card’s issuer to determine if your credit card has a spending limit on contactless payments.

Unauthorized transactions

If your card is lost or stolen, it may be easier to make fraudulent transactions with a contactless card because a pin code may not be required. It’s important to monitor your transactions so you can quickly spot fraudulent activity.

Many credit card issuers offer zero liability protection. This means that if your card is used fraudulently, you won't be held responsible for those charges, provided you report the loss or theft promptly.

The safety of contactless cards

Contactless cards are a relatively new and advanced form of payment technology. Here are some notable security features of contactless cards:

• Encryption: Contactless transactions use advanced encryption technology. With encryption, the information exchanged between the card and the reader is scrambled, making it difficult for anyone to intercept and use your card’s information.
• Unique transaction code: For every transaction, your contactless card will generate a unique one-time code. Even if someone manages to get the transaction data, they cannot reuse the code for another transaction, making it useless.
• Biometric Authentication: Some newer contactless cards can incorporate biometric features, such as fingerprint recognition or facial recognition, for added security. This ensures that even if your card is lost or stolen, it can't be used for contactless payments without your unique biometric data.

In summary

Contactless credit cards are often considered a fast and secure way to pay. Even though they use newer credit card technology, they are widely accepted forms of payment in the US, Asia and Europe. Contactless cards use encryption and one-time transaction codes to help keep your payment information secure while paying. Your contactless card may have a spending cap on transactions to help prevent large, fraudulent transactions should your card be lost or stolen.