How do contactless or tap-to-pay plastic money transactions work?

Contactless or taptopay plastic money transactions utilize near field communication (NFC) technology to enable quick and convenient payments. With this technology, you can make payments by simply tapping or waving your card or mobile device near a contactlessenabled payment terminal.

Here's how contactless transactions typically work:

1. Card or Device: Ensure that your credit card, debit card, or mobile device (e.g., smartphone or smartwatch) is equipped with contactless payment functionality and has an embedded NFC chip.

2. Merchant Terminal: Look for a payment terminal that supports contactless payments. These terminals are equipped with an NFC reader.

3. Tap or Wave: When prompted by the payment terminal, simply tap or wave your card or device near the contactless symbol on the terminal. The transaction is initiated wirelessly through the NFC technology.

4. Authentication: For security purposes, depending on the transaction amount and the card issuer's policies, you may be required to enter a PIN or provide biometric authentication (e.g., fingerprint or face recognition) on your device to authorize the payment.

5. Transaction Complete: Once the transaction is authorized, you'll receive a confirmation, usually through a beep or a notification on the terminal, indicating that the payment was successful. In most cases, no signature or physical contact with the terminal is required.

Contactless payments are designed for smallvalue transactions and offer a faster and more convenient payment experience compared to traditional card swiping or inserting. They are widely accepted at various merchants, including retail stores, restaurants, transportation services, and more.

It's important to note that there are usually transaction limits for contactless payments to ensure security. These limits vary by country, card issuer, and the specific payment terminal. If the transaction amount exceeds the limit or if requested by the merchant, you may be required to use the traditional card insertion method and enter a PIN to complete the transaction.