Contactless Credit Cards
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Contactless Credit Cards are the new kids on the block in the credit card world. Regular credit cards use a magnetic stripe to store their information and to read it, and the card must be ‘swiped’ through a card reader. On the other hand, in the case of a contactless credit card, the information is stored on a microchip embedded in the credit card. The microchip has a radio antenna that can transmit the contactless credit card’s information to a card reader without having to physically touch it. Using RFID ( radio frequency identification ), a contactless credit card can transmit its information by the contactless credit card holder waving his/her card within a few inches of the receiver.
At this moment in time, contactless credit cards are only accepted at specific locations, such as some petrol stations, certain convenience stores and some entertainment centres. However, it is widely believed that the new contactless credit cards will quickly catch on and many more retail outlets will be using the new technologly for their credit card transactions by the end of 2008. Contactless credit cards are available from both Visa and Mastercard along with Americian Express ExpressPay.
