A contactless credit card lets you pay for purchases quickly and easily by tapping your card on a payment terminal. This "tap-to-pay" feature uses Radio Frequency Identification (RFID) or Near Field Communication (NFC) technology to process transactions without physical contact.
Here’s what you need to know about contactless credit cards:
How do contactless credit cards work?
Contactless cards use RFID or NFC technology to communicate with a payment terminal. The terminal processes the transaction, sending information to the card processing network, which sends information to your card issuer. If everything is clear – the purchase is not flagged for fraud – the transaction goes through.
Contactless cards require the terminal to actively request payment, and your card must be close, so the risk of an accidental payment is very low.
How to know if your card is contactless
If you’re not sure if your card is contactless, look for a little symbol like a wave or Wi-Fi sign. The symbol may be on the back or the front of the card.
Benefits of contactless credit cards
Contactless credit cards offer several advantages:
- Faster transactions: Paying with a simple tap is typically quicker than swiping or inserting a card
- Ease of use: Convenient for small, everyday purchases like coffee, groceries or transit fares
- Enhanced security: Features like encryption and one-time transaction codes help protect your payment information
How to use a contactless credit card
Using a contactless credit card is quick and straightforward:
- Locate the contactless symbol: Find the symbol on the payment terminal that indicates it’s compatible with contactless payments. The symbol looks like a wave or Wi-Fi symbol.
- Tap or hold the card: Place your card close to the contactless symbol on the terminal
- Wait for confirmation: Look for a signal, such as a beep, green light or on-screen message to confirm the transaction
Security of contactless credit cards
Contactless credit cards are built with security features to help protect your transactions. They use encryption, which scrambles your payment information into a secure code.
A common concern is accidental payments, but the technology used in contactless cards has a very short range, making such incidents unlikely.
Many issuers, including Citi, have $0 liability for unauthorized charges. Also, legally, you’re only responsible for up to $50 in unauthorized charges so long as you report the activity within 60 days of receiving your statement.
Other ways to pay with your card
If you don’t have a contactless card, or if you simply don’t want to use contactless payment, here are some other ways to pay:
- Mobile payment apps: Digital wallets let you make tap-to-pay purchases using your smartphone or smartwatch
- Your card's chip: If your card has a chip, you can insert it into a terminal to pay
- Swipe methods: You can typically still swipe your card at many payment terminals
Disclosure: This article is for educational purposes. It is not intended to provide legal, investment, or financial advice and is not a substitute for professional advice. It does not indicate the availability of any Citi product or service. For advice about your specific circumstances, you should consult a qualified professional.
