What is the Contactless Debit Card Limit, and How Can We Use it Safely?

Are you using a contactless debit card, but unsure about the per-transaction limit? Do you know what to do if the limit is exceeded? If you’re a contactless card user, it’s important to take necessary precautions to ensure the safety of your transactions.

Credit and debit cards with contactless technology are becoming increasingly common. These cards can be used to make payments through POS machines without the need to swipe or insert the card. Payments are made in mere seconds, without the need to remember your PIN. Tap-and-pay technology is used all over the world, and many banks in our country also provide this option to their customers.

Contactless Debit Card Limit
Contactless Debit Card Limit

To ensure that you’re using your contactless card safely, it’s important to understand what contactless debit cards are, how they work, their transaction limits, and what to do if you exceed them. Be aware of the per-transaction limit of your card and take necessary actions to avoid exceeding it.

This can include splitting your purchases into smaller transactions or using another payment method. By taking these precautions, you can ensure that your contactless card transactions are safe and secure.

What’s a contactless debit card and what’s the spending limit?

A contactless card is a modern debit card that enables you to shop within a preset spending limit and make quick payments. Using this card, you can make a payment at a point of sale terminal by simply tapping it, without having to swipe or enter a PIN. This option is available for payments up to Rs. 5,000 without requiring a PIN.

However, if you exceed this limit, you will need to enter a PIN. Please note that the maximum limit for payments made through contactless mode is Rs. 5,000 per transaction. To curb the spread of COVID-19, the RBI announced on December 4, 2020, that the limit for contactless payments would be increased to Rs. 5,000.

What precautions should be taken when using contactless cards?

It is essential to know that using contactless cards can be risky as it leaves the possibility of credit and debit card information misuse. These cards utilize electromagnetic waves to process payments, and the transaction is completed when the card is placed within four inches of the POS reader. Hence, it is crucial to keep your card safe to avoid any unauthorized payments.

To prevent cybercriminals from hacking your information, you can use an RFID blocking wallet that can block the waves from passing through and keep your information secure. It is also important to note that contactless cards allow one-time payments of up to Rs. 5,000. However, if your card is lost, criminals can use it for unauthorized transactions of up to Rs. 5,000.

Therefore, it is recommended to enable the lock feature to prevent unauthorized access. In case of any suspicious transactions, it is essential to block the card immediately.

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