Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors' opinions or evaluations.
Contactless credit cards have circulated for years overseas and are finally becoming more common in the U.S. With any technology shift comes a myriad of questions: How do these cards work? Is the technology secure? Which banks issue contactless cards?
Here’s our guide for everything you never knew you wanted to know about contactless credit cards.
Featured Partner Offer
Bank of America® Customized Cash Rewards credit card
2.7
Forbes Advisor created additional star ratings so that you can see the best card for specific needs. This card shines for this use, but overall the star ratings may differ when compared to other cards.
Choose your 3% category
Earn 3% cash back in the category of your choice, 2% at grocery stores and wholesale clubs (up to $2,500Read More
Welcome Bonus
$200
Annual Fee
$0
Regular APR
17.49% - 27.49% Variable APR on purchases and balance transfers
Credit Score
Good, Excellent(700 - 749)
Editorial Review
While offering solid rewards for moderate spenders, the card really shines for Bank of America Preferred Rewards clients, who get a 25%-75% boost in cashback earnings.
Pros & Cons
- Bank of America Preferred Rewards clients earn 25% to 75% more cash back
- Decent rewards earning potential
- Option to change 3% bonus category monthly
- Bonus rewards have quarterly caps
- High balance transfer fee
- Foreign transaction fee
Card Details
- $200 online cash rewards bonus after you make at least $1,000 in purchases in the first 90 days of account opening.
- Earn 3% cash back in the category of your choice, automatic 2% at grocery stores and wholesale clubs (up to $2,500 in combined choice category/grocery store/wholesale club quarterly purchases) and unlimited 1% on all other purchases.
- If you’re a Preferred Rewards member, you can earn 25%-75% more cash back on every purchase. That means you could earn 3.75%-5.25% cash back on purchases in your choice category.
- No annual fee and no expiration on rewards.
- 0% Introductory APR for 18 billing cycles for purchases, and for any balance transfers made in the first 60 days. After the intro APR offer ends, 17.49% – 27.49% Variable APR will apply. A 3% fee applies to all balance transfers.
- Contactless Cards – The security of a chip card, with the convenience of a tap.
- This online only offer may not be available if you leave this page or if you visit a Bank of America financial center. You can take advantage of this offer when you apply now.
$200 online cash rewards bonus after you make at least $1,000 in purchases in the first 90 days of account opening
Credit Score ranges are based on FICO® credit scoring. This is just one scoring method and a credit card issuer may use another method when considering your application. These are provided as guidelines only and approval is not guaranteed.
What Is Contactless Payment?
“Contactless payment” refers to a no-touch form of payment using a credit, debit or gift card on a point-of-sale system equipped with the adequate technology. Contactless-equipped cards use radio frequency identification (RFID) technology and near-field communication (NFC) to process transactions where possible.
Contactless payment is an alternative to swiping or inserting a card into a card terminal. It’s a fast, easy and fairly secure form of payment for many cardholders and merchants.
What Is a Contactless Credit Card?
A contactless credit card uses RFID technology to enable you to hover or tap a card over a card terminal as a means of conducting a transaction. The card emits short-range electromagnetic waves containing your credit card information to be captured by the point-of-sale system and processed to complete the transaction.
Many credit cards now have chips built in, but the chip that permits you to “insert” instead of “swipe” is not the same as a contactless card. A card with contactless technology looks much the same to other cards, regardless of other technologies. Every credit card should have at least a magnetic strip on the back and credit card information printed on the card.
Sometimes called “tap and go” or “tap to pay,” contactless payments are up to ten times faster than other forms of payment. Credit cards connected to devices like smartphones or smartwatches provide an alternative form of contactless payment using the same technology as contactless credit cards. Apple Pay, for example, securely stores personal information and credit card numbers on an iPhone or Apple Watch. Users can then use their devices to tap and go at participating stores rather than taking credit cards out of a wallet, purse or pocket.
How Contactless Credit Cards Work
Contactless credit cards have a small embedded chip emitting electromagnetic waves. This chip is not the “insert” chip you use instead of swiping. When you place your card within a few inches of a contactless-enabled payment terminal, your payment information is transferred.
While it’s often referred to as “tap to pay,” no tapping is actually needed. Instead, you usually need to place your card within a few inches of the payment terminal to initiate payment.
It may take a second or two for the transaction to complete, so don’t pull your card away too quickly. To indicate when the transaction is complete, the payment terminal may beep, display a green checkmark or flash a green light.
How To Use Contactless Cards
In order to use the contactless payment feature, the merchant will need to have a contactless-enabled terminal. These payment terminals are quickly becoming ubiquitous in the U.S., as they already are in Canada, Europe and Australia. You can use tools like the Mastercard Contactless Locator to find merchants near you accepting Mastercard contactless cards. In general, if the terminal has a little wifi symbol it is enabled to accept contactless cards.
Once you have a contactless card and the merchants you use accept contactless payments, hold the card over the point-of-sale or card terminal to initiate the payment. Continue holding the card over the terminal for a second or two (you don’t need to physically touch the card to the terminal for this to work). The terminal will prompt you with a success message once the transaction has been completed. Voila—you’re done.
If you have multiple contactless credit cards, you won’t want to tap your wallet or purse on a card terminal. Otherwise, the transaction might post to a different card than the one you intended. Always take out the specific card you want to make a payment with.
If you have connected your contactless credit card to a digital wallet service like Apple Pay or Google Pay, simply hold your device over the card terminal to make a payment rather than removing your card from your wallet. Make sure your primary credit card is set up as the default card in Apple Pay or Google Pay if you have multiple contactless credit cards.
How To Know if Your Credit Card Is Contactless
Look for the contactless indicator symbol on the back or front of your card. The contactless symbol looks similar to a WiFi signal turned on its side. The same symbol will appear on a point-of-sale or card terminal’s screen indicating contactless payment is accepted.
Contactless Payment Security
After learning about how this technology works, perhaps contactless credit cards seem a little too easy to be safe.
One-Time Code
Like the chips in our credit cards, the contactless card chip creates a one-time code for each individual transaction to accompany your payment information. This code is transmitted with your account number when you “tap” to pay. Your name, billing address and card verification code aren’t transmitted
Even if someone were able to fraudulently obtain your payment information, it would be difficult if not impossible to complete a contactless payment without the card or your other info. In order to generate the one-time code, a thief would need to crack the complex algorithm the bank uses to generate this code.
This one-time code makes contactless credit cards safer to use than the magnetic stripe technology. When you swipe a magnetic stripe, your payment and personal information can be captured by a skimming device. Hackers can then use the information to create a duplicate magnetic stripe to carry out fraudulent transactions with.
Physical Security
Instead of skimming, the biggest security issue with contactless credit cards will involve physical possession of the card. No PIN or signature is typically required when using contactless payment, so if your card is lost or stolen it could be used by someone else without easy detection.
This isn’t a reason to leave your contactless cards at home. If your card is stolen, a credit card company’s fraud protection should cover any fraudulent charges. For this reason, some card issuers have a limit on the amount that can be paid via contactless payment. For example, American Express has a limit of $200 per transaction in the United States–although this number varies slightly from country to country. Beware this protection may not always extend to debit cards, so check with your card’s issuer to verify fraud protections.
Electromagnetic (RFID) shielding, either built into the lining of a wallet or case can help protect a card from being skimmed when not being used for a purchase.
Benefits of Contactless Credit Cards
Speed
Many of us are now familiar with the speed—or lack thereof—of paying by “dipping” or “inserting” a credit card chip. It takes so long between inserting the card and getting a confirmation that most payment terminals will buzz or ding to alert you when you can finally remove your card, since we all space out or start a new conversation or thought during this time.
In comparison, “tapping” to pay using a contactless chip can take only seconds. Contactless payments are much faster than inserting a credit card and safer than paying with cash or by means of magnetic stripe swipe.
Reduced Contact with Public Surfaces
The Covid-19 pandemic has brought long-needed attention to the amount and sanitation of the public surfaces we all touch. Using contactless credit cards helps avoid more touch points.
Less Wear-and-Tear
Magnetic strips and EMV chips can wear out from repeated contact with payment terminals. Contactless chips by nature won’t suffer from this problem. A contactless card chip should last for years.
Better for Overseas Travel
Chip and PIN technology has become so ubiquitous overseas—particularly in Europe and Australia—the technology is essentially the new default.
Many self-serve ticket machines require either a Chip and PIN-enabled card or contactless payment. If you don’t have a card with Chip and PIN technology, using a contactless credit card may be the only way you can pay some vendors.
Are Contactless Cards Safe?
Contactless credit cards are currently among the safest forms of payment. It’s incredibly difficult for a hacker to recreate the one-time code that contactless credit cards create for each transaction. Compared to magnetic strips that are more easily duplicated, contactless credit cards are much more secure.
The easiest way for a thief to leverage contactless payment technology is to steal your physical credit card. Because signatures are often not required for contactless payments, thieves could theoretically get away with making fraudulent payments, but card issuer’s fraud departments have become quite sophisticated and any fraudulent charges will likely be flagged and refunded to your account. Always contact your card issuer right away if your credit card is stolen or you notice fraudulent activity. Despite the sophistication, you shouldn’t rely on a fraud-monitoring service or your issuer to catch fraud.
Additionally, contactless payments are more desirable than swiping cards or typing in a PIN because the technology reduces physical touching of card terminals and thus helps reduce the spread of bacterial or viral disease.
Banks That Issue Contactless Credit Cards
Contactless credit cards are quickly becoming the norm in the U.S. There are currently over 400 million contactless Visa credit cards in circulation. Most major American credit card issuers are now sending contactless cards by default.
American Express
American Express reported, “Most American Express products have contactless technology” and recommends that cardmembers “look for the contactless symbol on the back or front of your Card.” If you don’t already have a contactless card, your next renewal card or replacement card will more than likely have this feature. Not all Amex products have yet adopted the contactless tech.
Bank of America
Bank of America began issuing contactless credit cards in mid-2019 but only to cardholders in New York City, Boston and San Francisco. Now, all newly issued Bank of America credit cards are contactless-enabled.
Capital One
Many U.S.-issued Capital One credit cards come with contactless card chips. This includes popular cards such as the Capital One Venture X Rewards Credit Card, Capital One Venture Rewards Credit Card, Savor Rewards Credit Card*, Capital One SavorOne Cash Rewards Credit Card, Capital One Quicksilver Cash Rewards Credit Card and Capital One QuicksilverOne Cash Rewards Credit Card.
Chase
Chase’s portfolio currently includes over 20 credit cards issued with contactless chips. These include some of our favorite credit cards, such as the Chase Sapphire Reserve®, Chase Sapphire Preferred® Card, Chase Freedom Unlimited® and the Ink Business Preferred® Credit Card.
Citi
Citi doesn’t list which credit cards have contactless chips, only noting that the feature is “included with Select Citi® Cards.” Citi lists whether a card is contactless or not on the card detail page.
For example, the Citi Premier® Card, Citi® Double Cash Card and Citi Rewards+® Card are all currently being issued as contactless cards.
Featured Partner Offers
Welcome Bonus
60,000 bonus points
Annual Fee
$550
Credit Score
Excellent
Regular APR
21.24% - 28.24% Variable
Credit Score ranges are based on FICO® credit scoring. This is just one scoring method and a credit card issuer may use another method when considering your application. These are provided as guidelines only and approval is not guaranteed.
Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $900 toward travel when you redeem through Chase Ultimate Rewards®
Welcome Bonus
60,000 bonus points
Annual Fee
$95
Credit Score
Excellent, Good
Regular APR
20.24% - 27.24% Variable
Credit Score ranges are based on FICO® credit scoring. This is just one scoring method and a credit card issuer may use another method when considering your application. These are provided as guidelines only and approval is not guaranteed.
Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $750 when you redeem through Chase Ultimate Rewards®.
Welcome Bonus
N/A
Annual Fee
$0
Credit Score
Excellent, Good
Regular APR
18.49% - 28.49% (Variable)
Credit Score ranges are based on FICO® credit scoring. This is just one scoring method and a credit card issuer may use another method when considering your application. These are provided as guidelines only and approval is not guaranteed.
N/A
Bottom Line
Even before the Covid-19 pandemic, contactless credit cards were poised to take root in the U.S. The payment method is faster than dipping a credit card chip and more secure than swiping a credit card stripe. Because of Covid-related desires to avoid high-touch surfaces, it might be the “contactless” aspect that ultimately sold the world on adopting the payment method.
Frequently Asked Questions (FAQs)
Can I unknowingly make a purchase if I am in close proximity to a contactless-enabled system?
It’s unlikely you will unknowingly make a contactless purchase. A contactless credit card must be within inches of a contactless-enabled system, which usually requires you physically holding the card over the terminal. It is, however, possible. Like you shouldn’t wave your cash around in public, you also shouldn’t wave your credit cards around.
How do I know if my card or device can make contactless payments?
Check the front or back of your credit card to find the contactless indicator symbol. It resembles a WiFi signal turned on its side.
Where do I tap to pay with contactless credit cards?
You can tap to pay with contactless credit cards by hovering the card over the screen of the point-of-sale or card terminal. Look for the contactless indicator symbol to make sure the terminal accepts contactless payments.
FAQs
What is a contactless credit card? ›
A contactless credit card uses RFID technology to enable you to hover or tap a card over a card terminal as a means of conducting a transaction. The card emits short-range electromagnetic waves containing your credit card information to be captured by the point-of-sale system and processed to complete the transaction.
How does a contactless card work? ›A contactless payment system uses radio frequency identification (RFID) technology. The card contains a chip and a radio antenna. This antenna picks up the signal when it's close to a card reader and allows the transmission of information to the point-of-sale terminal.
What is the advantage of a contactless credit card? ›Quicker transactions and shorter queues at the checkout are the most significant advantages of contactless payment. Handling cash is not a concern at the checkout. You also don't have the hassle of punching in your PIN.
How do I use my contactless credit card for the first time? ›The first time you use your contactless card for a transaction, you'll be asked to use chip and PIN or sign for your purchase. Once you've done that, all future transactions can be contactless. You need to hold your card very close to the reader (around 2 – 4 centimetres) for it to work.
Why is it called contactless card? ›Some debit and credit cards have NFC technology that allows the customer to pay for items by tapping or waving their card above the payments reader. These types of cards are called contactless payments cards.
Why do people use contactless? ›Contactless payments offer ease, speed and convenience to consumers' in-person transactions. Plus, they enable customers to pay using their smartphones if they do not have their credit or debit card to hand.
Do contactless cards require PIN? ›Contactless transactions don't require you to enter a PIN, sign a receipt, or wait for your card to be processed in the chip card holder. You can make purchases in seconds.
Do contactless cards work through wallet? ›In most cases, your card does not need to be removed from your wallet for payment to be processed. However, it won't work if the card is in an RFID-shielded wallet or cover. Small purchases (usually under $50) won't need a PIN or signature but they may be required for larger transactions.
Does contactless work if you have no money? ›Will contactless payments work if you have no money in your account? Contactless transactions could still go through even if you have run out of money. Retailers do not have to check how much money is in your account before accepting your card payment, meaning you could be charged interest if you go into an overdraft.
Is contactless safer than chip and pin? ›Safer than cash and no PIN required: contactless cards are among the safest forms of payment today. This is because it is extremely difficult for hackers to duplicate the one-time code that contactless credit cards generate for each transaction.
What happens if you have two contactless cards in the same wallet purse? ›
If you have two contactless cards in your purse or wallet and hold it over the reader, the payment will normally be rejected. However, to be safe you should remove the card from your purse or wallet before using it - as you would for any other payment.
What happens if someone uses your contactless card? ›Contact your bank immediately
If you claim the use of the card was not authorised by you, it is for your bank to prove otherwise. The bank may be able to cancel the payment or put the money back into your account. If your card provider will not give you your money back, report them to Trading Standards.
While contactless allows you to make payments without a PIN, it doesn't mean you can forget it entirely. Card issuers only allow five consecutive contactless transactions that can be made before a PIN is requested in order to prevent fraud.
Which side of the card do you use for contactless? ›How to tell whether your card is contactless. To check whether your Capital One card is contactless, just look for the contactless symbol on the back of your card. The contactless symbol is four curved lines that get bigger from left to right.
Is there a daily limit on contactless? ›There isn't a daily limit for contactless payments. However, from time to time, when you shop using contactless payments, you'll need to put your card into the machine and enter your PIN to verify it's you, before you can use contactless again. This is part of a new EU regulation to help prevent fraud.
Why do Americans not have contactless? ›Many millions of dollars were spent globally on installing NFC card readers, issuing NFC cards and marketing. At that point a contactless card cost a substantial amount more (as much as $10 per card) than an equivalent non NFC card for the issuing bank, reducing banks willingness to issue on a mass basis.
What is another word for contactless? ›Contactless payment is also referred to as tap-and-go or tap by some banks and retailers.
How can I tell if my credit card is contactless? ›The Wi-Fi-looking symbol on a debit or credit card is the EMVCo Contactless Indicator*. It indicates that your card can be used to tap to pay on a contactless-enabled payment terminal.
Can anyone use my contactless card? ›Contactless technology means that a thief can use your card, even if they don't have your PIN. There is also a risk that you could accidentally pay for someone else's goods if your contactless card is too near a terminal while a transaction is in process.
Why is there a limit in contactless card? ›A contactless payment limit—also referred to as a cardholder verification method (CVM) limit—is the maximum amount a customer can pay with a contactless card before they are prompted for a signature or PIN verification. These limits are in place to help protect consumers from fraud.
Why is contactless payment better than cash? ›
The main reason why people pay contactless is speed and convenience. You hold your card or phone in front of a reader and pay. You do not have to enter a PIN code (up to a certain amount), sign a receipt when using a credit card or count out all your cash money/coins. So, you save time, effort and avoid long queues.
Can I swipe my contactless card? ›Tap or hold your contactless card near the Contactless Symbol on the checkout terminal. You may be asked to enter your Personal Identification Number (PIN) or sign for debit card transactions. If a contactless terminal isn't available, just insert or swipe your card.
Can you use a contactless card at an ATM? ›Yes. You can use your contactless card to withdraw cash, check your balance and more. Your experience at the ATM will remain the same; insert your card like you do today and follow the prompts on the ATM. If the ATM is chip-enabled, insert the card as instructed on the ATM with the chip facing up.
How do I pay with contactless card? ›Contactless payments are touch-free with no need to type in your PIN or hand over your card. Simply touch your card to the reader, listen for the beep, and your payment is securely processed.
What is the most popular cashless payment? ›Credit and debit cards are one of the most frequently used cashless payment methods in the world right now. They are a quick, secure, and convenient method of payment.
Do banks charge for contactless payments? ›Not all providers charge an authorisation fee, but for those that do the merchant in question will have to balance the amount involved with the transaction fees charged. The transaction fee is charged on payments using methods such as debit cards, and is usually a specific percentage of the cost of the transaction.
Can contactless cards be scanned? ›Reality? It is impossible to clone a contactless card thanks to data collected by a hidden reader like a smartphone or any other NFC reader. It is also impossible to collect enough data from the card to complete an online purchase.
Can I still use contactless If I cancel my card? ›WHY CAN CARDS STILL BE USED AFTER THEY HAVE BEEN CANCELLED? IF you report a card as lost or stolen then it can't be used for a standard chip and PIN transaction. When you use a contactless card a retailer may process the payment in either “online” or “offline” mode.
Can a contactless payment go through twice? ›Being charged twice for one transaction when paying with contactless is highly unlikely. This is because once you've placed your card or smartphone on the card reader, the transaction is complete.
What happens if I forget to tap out on contactless? ›Always Touch In & Out
If you don't touch in and out on every journey you make we don't know where you have travelled, so we can't charge the right fare. If this happens your journey is "incomplete" and you could be charged a maximum fare.
Do magnets break contactless cards? ›
Instead of a magnetic strip that you swipe, most credit cards now have an EMV chip that you insert into a card reader or even use to pay contactlessly. Luckily EMV chips aren't affected by magnets.
Do magnets affect contactless cards? ›It is important to note that it's not the strength of the magnet, but the duration of exposure. Professor Sherry explained that even a fridge magnet would have an impact on credit cards after a long enough time. Prolonged exposure to an external magnet can throw the information out of place, making the card unreadable.
Which banks have contactless cards? ›- Affinity Plus Federal Credit Union. How it works: Affinity Plus Federal Credit Union offers contactless debit and credit cards. ...
- Alliant Credit Union. ...
- American Express. ...
- Bank of America. ...
- Capital One 360. ...
- Charles Schwab. ...
- Chase. ...
- Citibank.
Researchers have found that the flaws in the payments system for some contactless cards could potentially allow criminals to steal hundreds of pounds in a single transaction.
How do I protect my contactless card in my wallet? ›- Buy an RFID-Blocking Wallet. ...
- Set up a notification whenever a payment is made. ...
- Check your transactions. ...
- Password protect your phone and use different passwords for different accounts. ...
- Update your software when prompted.
Not all gas stations accept these payment systems. Use a “contactless” credit card. Instead of inserting this type of card, you tap it on the reader. Cards with this technology include the Wi-Fi symbol.
How do you destroy a contactless card? ›Make a cut 5 mm deep anywhere around the debit card or snip off a corner. This will break the antenna path and stop power to the chip when held near a reader. That's it. Easy!
Why does contactless sometimes ask for PIN? ›If you make several payments in a row, we'll ask you to enter the card's PIN. This can help protect your account if your card is stolen, too. No one can spend more than the card's contactless limit in a single contactless transaction.
What is the contactless limit in USA? ›You can also only spend a maximum of £100 in any single contactless card transaction. However, if you lose your card, or think it might have been stolen, then you should contact your bank straight away. You are fully protected against fraud, so you get all of your money back..
Can you swipe a contactless credit card? ›
Tap or hold your contactless card near the Contactless Symbol on the checkout terminal. You may be asked to enter your Personal Identification Number (PIN) or sign for debit card transactions. If a contactless terminal isn't available, just insert or swipe your card.
Is there a charge for using contactless? ›Not all providers charge an authorisation fee, but for those that do the merchant in question will have to balance the amount involved with the transaction fees charged. The transaction fee is charged on payments using methods such as debit cards, and is usually a specific percentage of the cost of the transaction.
Does contactless cards require PIN? ›Ans: You can use your contactless card wherever you see this symbol at the shop/store/outlet. It is ideal for transactions below Rs. 2000 as a PIN and Signature is not required. So you do not need to count the change or worry about carrying enough cash.
Is contactless payment free? ›No transaction fees apply to credit cards. For debit cards the transaction fee is waived on contactless transactions until further notice, additional charges may apply when using your card abroad.
Is contactless safer than chip and PIN? ›Safer than cash and no PIN required: contactless cards are among the safest forms of payment today. This is because it is extremely difficult for hackers to duplicate the one-time code that contactless credit cards generate for each transaction.
Can you refuse a contactless card? ›No, you can't switch it off. If you choose not to use contactless, you can simply continue to pay with Chip and PIN. However, there are many benefits to contactless payments.
How much can I spend on contactless card without PIN? ›Ans: You can use your contactless card wherever you see this symbol at the shop/store/outlet. It is ideal for transactions below Rs. 2000 as a PIN and Signature is not required.
How do I use my contactless card in stores? ›Contactless payments are touch-free with no need to type in your PIN or hand over your card. Simply touch your card to the reader, listen for the beep, and your payment is securely processed.
How many times can you tap your bank card? ›Also, as a security measure, you can only make a maximum of 5 Contactless transactions in a row. After that, you'll have to enter your PIN to carry out another transaction (even if it's for under €50).
What is the limit for tapping your card? ›You can tap your card at most retailers, including coffee shops, grocery stores, restaurants and gas stations for any purchase up to $250. If you don't see the contactless symbol when making a purchase, either swipe or insert your chip card into the terminal to pay.