Contactless Credit Card Technology

Credit card technology has taken another leap with the contactless credit card. These cards work wirelessly, meaning there is no need to swipe your card through a reader to complete your transaction. It is just one more way card companies are making it possible for us to keep up with the break-neck pace of our lives.

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The contactless credit card is the newest innovation from credit card companies. Credit card issuers are constantly looking for ways to make it easier or more convenient for consumers to use their cards instead of cash. Visa has done research that shows that about 70% of all transactions in Australia are already done with cards and they would like that number to increase. One of the ways to do this is through this new card innovation.

The difference between using a contactless credit card and a regular card is that you do not have to swipe your card or insert it into a card reader. These cards work over radio frequencies sending information from the credit card to the card terminal over the air. The card need only be four centimetres from the terminal and it will work. In effect all you have to do is wave your card near the card reader in order to complete your transaction.

The big card issuers, Visa and MasterCard are slowly rolling out this new technology. If you have a new card it is probably capable of making these contactless credit card transactions. The bigger issue is getting the contactless readers out to retailers so that they can accept them. There are only a few thousand places that already have the new card readers. If you have a card that has contactless technology though you can already use it at places like Sumo Salad and 7-Eleven.

You are probably wondering how this technology stacks up in terms of security. While the card issuers claim that there are no added concerns with contactless credit card technology some people still fear that they are more open to fraud scams. Skimming attacks are one of the main concerns because fraudsters do not have to physically hold a card in order to make a copy of them. It would seem that all they would have to do is have access to a card reader and they would be able to make cheap copies and use them fraudulently.

Even with these concerns it is easy to see that contactless credit card technology will probably become commonplace in the very near future. Most of us already lean heavily on card use because it is so much more convenient and secure then carrying cash. With this new technology making card purchases is even easier. Hopefully, it will remain just as secure as using the traditional card readers.

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For more information on the contactless credit card technology, credit card comparison, and balance transfer credit cards, please contact your bank or provider, or search the web.