What You Need to Know About Contactless Payments
Contactless payments are changing the way we shop, making transactions faster, easier, and more secure. Whether you’re using a credit or debit card, a smartphone, or a smartwatch, tap-to-pay technology allows you to complete purchases without swiping, inserting, or handling cash. In this blog, we’ll explain how contactless payments work, why they’re safe, and how you can start using them today.
Key Points
- Contactless payments allow you to complete transactions by simply tapping a contactless card, smartphone, or smartwatch on a compatible reader.
- Contactless payments uses Near Field Communication (NFC), which only works within a few inches of the terminal, helping prevent accidental or unauthorized transactions.
- Each purchase is protected through encryption and tokenization, generating a unique, one-time code for every transaction to reduce fraud risk and keep your actual card number secure.
What is Contactless Payment?
Contactless payments let you pay quickly and securely by simply tapping a contactless chip card, smartphone, smartwatch, or other enabled device on a compatible terminal. Whether you’re using a card, phone, or wearable, the same secure technology is at work—making checkout fast, convenient, and completely touch-free.
How Does Contactless Payment Work?
Contactless payments use Near Field Communication (NFC) technology to share information between two devices within a short range. To perform a transaction, you must be within inches of a card reader, so you can’t accidentally make a payment.
Contactless payments also use one of the most secure encryption methods available: tokenization. Your information is encoded, and each transaction you make using your contactless card creates a unique, one-time code, reducing security and fraud risks. Due to this technology, contactless payments provide you with more security, reduced fraud risk, and faster payments.
Are Contactless Payments Safe?
Contactless credit cards are currently among the safest forms of payment. It’s difficult for hackers to recreate the one-time code digital wallets create for each transaction. When we compare it to magnetic strips that are easier to duplicate, contactless cards are much more secure.
The easiest way for a thief to leverage contactless payment technology is to steal your physical credit card. Always contact your card issuer immediately if your credit card was stolen or if you notice fraudulent activity. Despite the sophistication, you shouldn’t rely on a fraud-monitoring service or your issuer to catch fraud. For this reason, some card issuers have a limit on the amount you can pay via contactless payment. This protection may not always extend to debit cards, so check with your card’s issuer to verify fraud protections.
Learn more about keeping your information safe.
You don’t need a card with contactless payment technology to tap to pay; you can use your mobile wallet! A mobile wallet uses the same technology as a contactless card and can even provide extra benefits. It’s easy to add your Launch Credit Union credit card and debit card to your mobile wallet! Start paying without the plastic. Learn More about Mobile Wallets.
FAQs
How do I know if my card supports contactless payments?
Look for the contactless symbol (it looks like a sideways Wi-Fi icon) on your card. If you don’t see the symbol, contact your card issuer to ask if a contactless card is available.
Does contactless technology wear out over time?
Contactless cards are designed to last as long as traditional chip cards. However, if your card becomes damaged or stops working properly, contact your issuer for a replacement.
What should I do if a contactless payment is accidentally charged twice?
Double charges are rare, but if you notice one, contact your financial institution promptly so they can investigate and resolve the issue.
