Contactless payments let you make purchases with a tap of a card or mobile device. Learn how they work and what keeps your information safe.
Key Takeaways
- Contactless payments use short-range wireless technology to complete purchases with a tap.
- Eligible cards, smartphones, smartwatches, and other devices may support contactless payments.
- Security features such as EMV technology and tokenization help protect payment information.
- Mobile wallets also offer contactless payments and may add another layer of protection through passcodes, fingerprints, or facial recognition.
Tapping a card or mobile phone at checkout has now become a popular way to pay. It's a fast and convenient alternative to inserting a chip card or swiping a magnetic stripe.
Understanding the technology behind contactless payments may help you decide when and how to use them. Here'swhat you need to know.
What is Contactless Payment?
Contactless payment allows you to pay for purchases by holding an enabled card, smartphone, smartwatch, or other device within range of a compatible payment terminal. It uses wireless technology to transmit information and approve purchases.
How to Recognize Contactless-Enabled Cards and Terminals
To check whether your credit or debit card is enabled for contactless payment, look for a symbol that resembles four curved lines, increasing in size. A compatible terminal will have the same symbol. If a terminal is not equipped to accept contactless payments, you can still use a contactless card in the traditional way, by inserting the chip or swiping the stripe.
How Contactless Payment Works
Contactless payments typically involve three steps:
1. Wait for the terminal: The merchant starts the transaction, and then the terminal prompts you for payment.
2. Tap your card or device: Hold the card or device within an inch or two of the terminal's contactless symbol.
3. Complete the transaction: The card or device sends encrypted information to the terminal, which sends the transaction for authorization. Once approved, the payment is completed.
Near-field Communication (NFC) Explained
Near-field communication (NFC) is the wireless technology that powers contactless payments. When the merchant enters the final cost, it activates the terminal's short-range radio frequency reader. This briefly powers a chip inside an enabled card or device, allowing them to communicate through radio waves.
NFC vs. RFID
Radio frequency identification (RFID) uses radio frequency for one-way communication between a tag or device and a reader. It typically works at distances ranging from less than an inch to 40 feet or more. NFC is a specialized formof RFID technology that enables two-way communication and requires distances of only one to two inches, making it more appropriate for secure payments.
EMV Standards and Tokenization
While NFC provides the connection between the terminal and the card or device, EMV standards and tokenization secure the data during transmission. EMV® technology generates a one-time security code, called a cryptogram, for each transaction.[1] Tokenization, often used with mobile wallets, limits the information transmitted to the merchant by replacing the actual card number with a digital token. Both measures help prevent fraud during contactless transactions.[2]
Mobile Wallets, Devices, and Added Security
A card is not always needed for contactless payments. Mobile wallets such as Apple Pay®, Google Wallet®, and Samsung Wallet® allow you to pay with a compatible smartphone, smartwatch or other device. These apps store eligible debit or credit card information and allow you to pay by holding the device near a contactless terminal instead of tapping your card.
In addition to NFC and tokenization, mobile wallet transactions often require verification through a personal identification number (PIN), fingerprint, facial recognition, password, pattern, or device code. Some devices also use hardware security to add another layer of protection.
Contactless Card vs. Mobile Wallet
Both contactless cards and mobile wallets offer fast, easy payments. However, the experience differs in a few key ways:
Authentication: Contactless cards typically only require a tap, while mobile wallets may require a PIN, passcode, fingerprint, or facial recognition.
Convenience: Mobile wallets may store multiple cards on a single device, eliminating the need to carry each physical card.
Compatibility: Once activated, a contactless card typically works without additional setup. Mobile wallets require a compatible device and a card that is supported by the wallet and approved for mobile use by the issuer.
Security: Both use EMV security features. Mobile wallets may also add tokenization and device-level authentication to help protect payment information.
Benefits of Contactless Payments
Many users appreciate how contactless payments allow them to cash out in seconds without swiping or inserting a card. This speed and convenience make everyday transactions easier, from grabbing a quick cup of coffee or payingfor groceries to hopping on public transit.
Contactless cards stay in your hand throughout the transaction, reducing the chances of inadvertently leaving the card with the merchant. Tapping also limits physical contact, which reduces wear and tear on the card.
Merchants also benefit from faster checkouts, especially those that process frequent smaller purchases, such as convenience stores.
Common Concerns and Security Safeguards
Contactless payments have become more popular in recent years, but many people still have the same common concerns. For example, you may wonder whether it's easy to accidentally make a purchase or fall victim to fraud. Understanding the built-in safeguards and taking a few simple steps to increase security may help you use this technology with confidence.
Preventing Accidental or Duplicate Charges
Walking near a terminal with a contactless card or payment device will not accidentally trigger a purchase. The merchant must first initiate a transaction and activate the terminal. Then, the card or device must come within one to two inches of the terminal before it transmits payment information.
Terminals are also designed to complete one transaction and authorize one card at a time. They have built-in time delays and unique transaction identifiers to help prevent duplicate charges.
Fraud Monitoring and Transaction Alerts
Safely using contactless payments starts with basic account security. Setting up transaction alerts on the underlying accounts may help you keep track of purchases and quickly spot unfamiliar activity. For example, you may set an alert to notify you of transactions over a certain dollar amount.
It's also important to review your credit and debit card accounts regularly and report anything that looks incorrect assoon as possible. If your contactless card or device is lost or stolen, contact the card issuer right away and use any available card-locking features if you need time to investigate its location.
How PNC Supports Contactless Payments
PNC Bank offers several ways to make contactless payments, offering customers both convenience and flexibility.
Contactless PNC Cards
You can tap your eligible PNC Visa® debit card and credit cards at any terminal that accepts contactless payments.Each contactless transaction uses a unique encrypted code, helping protect your card information and keeping your card number from being exposed to the merchant.
PNC Pay®
PNC Pay® also allows customers with eligible Android® devices to make purchases using eligible PNC cards that have been enrolled through the PNC Mobile app. You can use PNC Pay anywhere that accepts contactless payments,including on mass transit systems in many cities. Eligible Android® devices must have an NFC antenna to beeligible.
Mobile Wallets
PNC cards work with several mobile wallets, including Apple Pay®, Google Wallet®, Samsung Pay®, and GarminPay℠. When you use an eligible PNC card through a supported mobile wallet, tokenization helps keep your actual card number from being shared with merchants.
PNC Paze℠
PNC Paze℠ is designed for online checkout rather than in-person contactless payments. It allows you to use eligible PNC Bank debit or credit cards to make online purchases without typing in full card numbers or creating new passwords.
Paze℠ is managed directly through the PNC Mobile app, and it increases security by using tokenization to conceal your card numbers.
Learn More About Contactless Payments
Contactless payments make it easy to pay with a tap while using security features designed to help protect your payment information. To learn more about how contactless payments work and the digital payment options available through PNC, visit the PNC Digital Payments hub.
Frequently Asked Questions
What is a contactless payment?
Contactless payment allows users to process checkout transactions without swiping or inserting a debit or credit card. Instead, it uses an eligible card, smartphone, smartwatch, or other device, held close to an enabled terminal. The card or device uses NFC technology to exchange payment information over a short distance.
How safe are contactless payments?
Contactless payments have several safety features, including EMV technology, to help protect transaction data. Mobile wallets may add extra protections such as tokenization and device-level security, including passwords, PINs, fingerprints, or facial recognition.
Do I need a PIN or signature?
Most contactless transactions only require a tap. However, some purchases may prompt you for a PIN, signature, or other form of verification. Requirements may vary depending on the size of the purchase, the merchant's preferences, the issuer, or the card.
Can I use my phone instead of a card?
Yes. Compatible smartphones and other devices may allow you to make contactless payments using mobile wallets such as Apple Pay®, Google Wallet®, or Samsung Wallet®. The device, payment card, and terminal must all be supported.
How can I protect myself from contactless fraud?
Set up transaction alerts, regularly review your accounts, and report unfamiliar transactions right away. If your card or device is stolen, report it to the issuer as soon as possible and take advantage of any lock features to avoid unauthorized transactions.
