Contactless Credit Cards

What are contactless credit cards?

Contactless credit cards differ from regular credit cards in the way the information is read from them by the card reader. A regular credit card stores its data on a magnetic stripe that must be physically swiped through a card reader. A contactless credit card, on the other hand, stores its data on a microchip embedded in the card's plastic. The microchip is fitted with a radio antenna that is capable of transmitting the card's data to a card reader without physical contact. Using radio frequency identification (RFID) technology with the ISO 14443 standard, a contactless card can transmit data to a special RFID card reader when the cardholder waves his card within a few inches of the receiver.

Who accepts contactless credit cards?

Presently, contactless credit cards are only accepted at select convenience stores, gas stations, movie theaters, and fast food restaurants. The drive behind the contactless credit card movement is to persuade consumers to use plastic conveniently at places that have traditionally been cash-intensive. Doing so would speed transaction times and reduce lines. While few merchants accept the contactless payments right now, the technology is expected to catch on by 2007 and widespread rollouts are predicted.

Who issues contactless credit cards?

Contactless credit cards are available from Visa Contactless, MasterCard PayPass, and American Express ExpressPay. The largest issuer of Visa and MasterCard contactless cards is Chase, which has branded their RFID line of cards "blink". American Express offers contactless technology on their Blue, Blue Cash, and Clear cards. Discover does not have any contactless credit cards, but they are researching mobile credit card technology.

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