Contactless Card

What Does Contactless Card Mean?

A contactless card is a physical card that is part of a contactless payment system, which offers more convenience than traditional point-of-sale payment systems where customers use standard debit or credit cards.

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Techopedia Explains Contactless Card

A contactless card has a built-in radio-frequency module that allows it be processed without being swiped through a magnetic stripe reader. As a result, the user does not have to swipe the card, but simply hold it up close to an RFID reader.

Contactless cards have been a traditional part of certain purchase systems, such as highway toll systems. Many companies also use contactless card systems for security, which allows an employee’s ID badge to unlock doors or facilitate security access just by placing it near an RFID reader. However, these kinds of systems are now making their way into retail, to make buying more convenient for the average consumer.

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Margaret Rouse

Margaret is an award-winning technical writer and teacher known for her ability to explain complex technical subjects to a non-technical business audience. Over the past twenty years, her IT definitions have been published by Que in an encyclopedia of technology terms and cited in articles by the New York Times, Time Magazine, USA Today, ZDNet, PC Magazine, and Discovery Magazine. She joined Techopedia in 2011. Margaret's idea of a fun day is helping IT and business professionals learn to speak each other’s highly specialized languages.