4 Contactless Credit Cards in India: Benefits, Features, Cons

There are many types of payment methods used online or offline by the consumers such as cash, debit card, credit card and others.

Each of these options has its own pros and cons. However the most widely used option is credit card due to the benefits involved such as – cashbacks, reward points, etc. But credit card has its limitations too.

Take for example common scenario seen in shopping malls, clubs, hotels, and other places where credit card is swiped and the owner enters the pin for making the payment. However the security threat associated with such payment is very weak. Anyone including the people standing nearby can see your PIN and use it unethically and may lead to fraud.

Enter into a PIN-free world – Fast, Secure, and Easy.

To minimize such frauds/thefts, few banks in India offer contactless credit card. Such type of card requires the owner to just tap or wave the card at point of sale (PoS) terminal. There is no need to swipe and enter PIN.

Listed in the below table are the contactless credit cards available in the Indian market.

FeaturesICICI Bank CoralICICI Bank HPCL Coral VisaSBI SignaturePNB - Wave and Pay
Annual feeRs. 500Rs. 199 (from second year onwards)Rs. 4000NA
Joining feeRs. 1000Rs. 199Rs. 4000NA

How to use contactless credit card for making the payment?

  1. Merchant will enter the amount on the contactless Point of Sale (PoS) machine.
  2. While making payment, you just need to tap or hold the card within 4 centimeter distance. Make sure there is a little symbol )))) on the machine.
  3. If the payment is successful, you will see a green light or beep sound from the PoS device.
  4. Receipt will be generated on the spot. In addition to this, card holder will get SMS/E-mail on their registered details containing the transaction details.

Other benefits apart from contactless transaction:

This card can be conveniently used in two ways: Tapping/Waving (contactless way) and Swiping/Dipping and then entering PIN (contact payment). And it’s upto the user to decide, which option he/she wants to use.

The moment you wave or tap, the whole process happens within seconds. That is, the transaction takes place fast compared to traditionally used technique of swiping.

Since the card is not required to be handed over to the merchant at the PoS, the security is high. And card skimming (technique used by fraudsters) is largely minimized.

Even if the card gets tapped or waved multiple times, the amount is still deducted once.

Like other cards, they can also be used for ATM cash withdrawal. However owner has to follow traditional process i.e. enter card in the ATM terminal, then enter PIN & then amount.


If card gets stolen then anyone can use it. This is why it is recommended to block the card immediately it gets stolen to prevent loss.

There is a maximum limit applied for each transaction. This is as per the rule set by Reserve Bank of India to prevent misuse. For e.g. SBI signature has a maximum cap of Rs. 2000 per transaction.

Not every merchant in India has contactless card machine.

How to make payment using contactless credit card, if the merchant does not accept such card?

At such places, you will have to pay using traditional method i.e. by entering PIN after the merchant enters transaction amount and swipes the card and asks to enter the PIN.

Since this card has a transaction limit associated, it is best recommended to use it for everyday purchases to save time.

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