Visa payWave and MasterCard PayPass – The New Contactless Methods of Payment

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Do you carry a number of debit cards with you and forget your card’s PIN while making transactions like during shopping or at restaurants too often? Gone are those days when you had to enter your ATM PIN for making even a small transaction.

Visa and MasterCard have introduced payWave and PayPass respectively, the new contactless payment methods that will not only make small transactions super quick but also make it easier for you to shop even if you don’t remember your debit card PIN.

The most significant feature of payWave and PayPass is that the payment is made in seconds and the user does not have to enter his PIN or provide his signature. However, for making transactions above Rs 2,000, the user has to swipe his debit card and enter his ATM PIN to make payments.

Benefits of payWave and PayPass Cards

payWave and PayPass have a number of benefits over traditional debit cards. Some of those are mentioned below:

• You don’t have to hand over your card for swiping. Thus, it reduces the chances of fraudulent transactions.
• Your payment is done in seconds as soon as you tap the card or bring it near the POS machine.
• You don’t have to enter your PIN for making small transactions. So, even if you forget your PIN, you can shop easily.
• You can make payment through your mobile using the payWave app even if you don’t have your card with you.
• Transactions done through contactless debit cards are safe and secure.
• Provisions have been made to prevent the misuse of the card. You have to enter your PIN for making transactions above Rs 2,000.
• This card can also be used at those PoS terminals where the contactless method is not applicable.

How To Carry out Contactless Transactions

It is easy to make contactless payment through these debit cards. The user has to follow these simple steps:

• Find a PoS machine with  mark
• The retailer enters the bill details in the PoS machine
• Wave your card or bring it within 4 cm range of the device
• Wait for the authentication and payment confirmation
• Greenlight confirms the completion of the transaction
• You may ask for the receipt if you want one or opt-out

Note: To encourage digital payments in a safe and secure manner, the Reserve Bank of India has increased the limit for contactless card transactions from Rs 2,000 to Rs 5,000 from January 1, 2021. 

Technology Behind payWave and PayPass Cards

Visa payWave and MasterCard PayPass work on the Near Field Communication (NFC) technology. These cards have an antenna embedded in the plastic. Whenever the contactless card is brought near a PoS machine, it transmits purchase information to and from the reader securely.

The contactless debit card consists of a contactless chip along with the NFC antenna and magstripe. The contactless transaction is done through this NFC antenna. The chip and magstripe is used at places where contactless payment system is not available.

The time taken for contactless payment is very less as compared to traditional card swiping payment method thus making the transaction process faster and more convenient.

Is payWave and PayPass Secure Enough?

Visa payWave and MasterCard PayPass cards use cryptographic key encryption technology for protection of data and security of transactions done through these cards. You have to keep the card at least 4 cm away from the PoS machine in order to prevent from accidentally paying for someone else. Contactless cards are secure as they have same safety features as that of traditional debit cards.

Some other advanced features of these contactless cards that make them safe enough for usage are:

• Fraudulent activities would be minimised as the card will remain in your hand throughout the transaction period.
• Contactless cards use the same network as swipe cards which are too tough to breach.
• Same transaction cannot be processed twice as a unique authentication code is generated for each transaction.

Limitations of Contactless Debit Cards

Even though contactless debit cards have a lot of advantages, there are certain limitations as well:

• A maximum transaction of Rs 2,000 can be done through this feature each time.
• The maximum value of all contactless transactions does not exceed Rs 10,000 in a day.
• There are a very few contactless PoS machines installed.

However, the transaction limit on contactless method ensures that your card is not misused for a higher amount in case of theft. You should always ensure the safety of your contactless debit card.

In case you want to make a transaction of more than Rs 2,000, you can still use the same card and follow the traditional swiping method to carry out the transaction. Just swipe your card and enter your PIN and you can make high value transactions through your contactless card as well.

Currently, the service is available with a few stores only. Thus, contactless cardholders cannot avail this feature everywhere they go. However, the facility will soon be available across the country.

List of Banks that Provide Contactless Cards

Following banks provide contactless debit cards to their account holders:

• DBS
• SBI
• IndusInd Bank
• HDFC Bank
• Axis Bank
• Standard Chartered Bank
• Kotak Mahindra Bank
• ICICI Bank
• Citibank
• Canara Bank
• Bank of Baroda
• IDBI Bank
• Punjab & Maharashtra Co-operative Bank
• Tamilnad Mercantile Bank