Due to the increased popularity of contactless payments, RFID gained popularity due to its admittance in credit and debit cards. Unlike normal cards, contactless credit cards do not require swiping against payment terminals. Instead, users can wave the card at the terminal or tap it to make payments. This helps the users to make quick transactions without making direct contact with the POS terminal. RFID also proves to be a secure way of making transactions with multilevel security from the banking system. The WiFi like symbol can easily identify cards equipped with RFID tags.
Moreover, For using contactless credit cards, no sign-in or PIN is required.
Contactless Credit Cards comprises passive RFID tags, and they utilize the power transferred by the payment terminal to activate the chip-on-card. The POS terminals and swiping machines consist of readers for capturing the waves from tags installed in cards. Also, contactless credit cards do not have universal protocols for payment transactions. Every brand has its proprietary protocols based on EMV principles. The RFID tags in the cards generate a unique one-time code for each transaction. These codes are transferred to the readers for completing the transaction securely.