What is a “contactless” credit card?

PayWave Visa Card

A “contactless” credit card is a credit card equipped with a “Radio Frequence ID” chip that “talks” to the merchant terminal when placed in the range of 2-4 inches of the terminal.

In the United States, the term “contactless payments” refers to the use of payment products currently supported by American Express® (ExpressPay), MasterCard (MasterCard® PayPass™), and Visa Contactless (Visa® PayWave).

Chase Bank studied the contactless systems and found that transactions occurred 63% faster than cash and 53% faster than a regular credit card.  Chase also reported that almost one-third of buyers will spend more if they can (easily) use a credit card.

credit card with the RFID contactless chip

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