Buzz
If you're frustrated with the slow processing times of EMV chip card payments, you’ll be pleased to learn that contactless credit cards and payment systems are becoming increasingly popular in the U.S.
You’ve probably encountered card readers with the necessary technology to read contactless cards at various locations, including retailers, gas stations, and grocery stores. Additionally, you may already be using services like Apple Pay, Samsung Pay, or Google Pay—these are forms of contactless payments where your credit or debit card information is securely stored in a digital wallet on your smartphone.
If you’re already using contactless payment methods, you may have noticed that, much like traditional credit or debit card transactions, each card issuer has its own set of limits that determine when you need to enter a PIN or sign.
For instance, Mastercard’s limit is $100 per transaction, according to CreditCards.com, while Apple Pay requires a signature for transactions over $50. In the U.K., where contactless payments are much more common, the limit is £30 per transaction, while in Australia, it’s set to $100 AUD. Some issuers may also impose a daily cumulative limit that triggers the need for a PIN or signature for security purposes, though this varies depending on the issuer and retailer. In the U.S., contactless limits can vary, but generally, “contactless limits are always lower than PIN transactions due to security measures to prevent fraud,” says WalletHub analyst Jill Gonzalez.
“Many people don’t need to sign a receipt for purchases under $25 or $50,” writes Rick Chen of Credit Karma in an email. “The rules are generally the same for contactless credit cards (like the popular ones in Europe or Australia) and for systems like Apple Pay.”
The key advantage of the system is speed. “While an EMV transaction takes around 30 seconds, a contactless payment only takes about 13 to 15 seconds,” reports CreditCards.com. Visa also states that the transactions are just as secure as traditional chip-based transactions, thanks to the unique one-time code generated each time you use it at a terminal.
Of course, no security system is flawless. Your card or smartphone can still be stolen. If you’re using a mobile wallet for contactless payments, here’s some security advice from Credit Karma:
Take full advantage of the security features offered by your device and apps.
This includes using Apple iPhone’s Touch ID and PIN codes to secure your phone when not in use.
Enable notifications for all cards stored in your digital wallet.
Most card issuers allow you to set up alerts that will notify you via text or email when your card is used in specific ways.
Install anti-malware software on your phone
and consider using technology that allows you to remotely erase data if your phone is lost or stolen.
Additionally, link credit cards to your wallet instead of debit cards, so if your cards are stolen, the credit issuer doesn't need to reimburse the funds that were already withdrawn from your account.
