| What is a contactless credit card and how does it | | | | there are security risks with using these RFID |
| work?For decades, credit cards have relied on | | | | credit cards, as the radio transmission could |
| magnetic stripes located on the reverse side of | | | | potentially get intercepted by a criminal with |
| the card to store data. To transmit this data, the | | | | malicious intentions. The good news, however, is |
| card must be swiped through a magnetic reader, | | | | that the actual credit card number is not |
| making physical contact with the stripe. A | | | | transmitted via radio wave. Rather, it is a unique |
| contactless credit card, on the other hand, stores | | | | encrypted code only good for RFID transactions. |
| its data on a chip embedded in the card's plastic. | | | | Also, just like ordinary cards, cardholders are not |
| This data is transmitted not magnetically, but | | | | liable for any fraudulent charges.Where can |
| rather via a tiny radio signal when the card comes | | | | contactless credit cards be used?Currently, Visa |
| in close proximity of a special reader at the | | | | Contactless, American ExpressPay, and |
| checkout stand. This works through radio | | | | MasterCard PayPass are available at select |
| frequency identification technology, also known as | | | | retailers in certain locations in the United States, |
| RFID. When the chip comes close enough to the | | | | including 7-Eleven, McDonald's, KFC, Arby's, |
| reader, an antenna on the chip is jolted to life by | | | | Walgreens, Sony Style, Wawa, Sheetz, CVS |
| the electromagnetic field created by the reader, | | | | Pharmacy, and a variety of movie theaters. |
| and transaction data is sent to into the | | | | Retailers capable of handing contactless credit |
| system.What are the advantages of contactless | | | | card transactions will have a special symbol on |
| credit cards?For starters, these RFID credit cards | | | | their credit card reader located at the checkout |
| are much faster and more convenient than | | | | stand. RFID credit cards can also be used at any |
| traditional magnetic stripe cards. A cardholder | | | | location that accepts ordinary credit cards, since |
| simply waves the card over the reader, waits a | | | | the new contactless cards will still have a regular |
| moment for the acceptence signal from the | | | | magnetic stripe on the back.Who offers |
| machine, and that's it. There's no need to fumble | | | | contactless credit cards?All new American |
| for cash, and with transactions under $25, there is | | | | Express Blue and Blue Cash cards now come |
| no need to key in a PIN code or sign a receipt. | | | | equipped with the contactless feature. Also |
| Just wave and go. Also, since the card never | | | | available from American Express is an RFID key |
| leaves the user's hand, it is considered by some | | | | fob that can be linked to most existing credit card |
| to be more secure.What are the disadvantages of | | | | accounts. Chase has teamed with MasterCard and |
| contactless credit cards?Some opponents to | | | | Visa to offer Chase blink cards in a variety of |
| contactless credit cards have contended that | | | | styles. |