Can You Use Credit Card without PIN?

If you own a credit card and you believe that a credit card cannot be used without an OTP/ PIN, you are of the wrong notion. Technology is at its boom these days in every sector and so is the case with the banking sector as well. The new cards these days come with a WiFi-like symbol embossed on the card but have you ever actually wondered what this symbol means? The tech generation these days might be aware of its meaning but the people who are not aware of this – The symbol shows that your card is a contactless credit card, which means you can use your credit card without PIN number.

How Contactless Card Works?

These are the type of cards that need not be swiped or dipped into the POS machine for the payment. Rather these cards use an updated technology by which you just have to tap the card on the head of the POS Machine and the payment will automatically be deducted from your account.

These cards use the updated RFID Technology (Radio Frequency Identification Technology). This technology allows the credit cards to communicate with the card reader when the card is held near the reader on the POS machine during the transaction. These cards come with an EMV chip and all the other details that are present in the traditional credit card.

Also Read: All You Need To Know About Contactless Credit Cards

Can a credit card be used without a PIN –

Now after reading the information above, the answer to the question is very clear – Yes, credit cards can be used without a PIN. Contactless cards have become very common these days among the youngsters but it will take time for the elder generation to become comfortable with this kind of technology. Also, keeping in mind the COVID-19 situation, using a card without entering a PIN had an additional advantage in that you do not have to touch any surface before paying through this card. So, contactless payments were one of the best decisions made during this time.

Benefits Of Using A Card Without a PIN

• Payments without a PIN usually take lesser time than the payments made by entering a PIN. When in a hurry, you can always use a contactless payment method.
• This method of payment is still struggling to make its place in India, but it is widely used in many foreign countries. Hence, it will be beneficial for the people traveling abroad.
• This method also allows you to stay away from infection as everybody uses the same machine and the same keypad for entering the PIN while making the payment which can be very dangerous in today’s situation. Hence, if you want to pay through a credit card, always prefer paying through the contactless method.
• Nowadays, a lot of scams are taking place, hence there are a lot of chances of credit card cloning while using it in a POS Machine. Hence. by using a credit card without a PIN, we can prevent our credit cards from getting cloned.

Is using a credit card without a PIN safe?

Many people think that using a credit card without a pin is a very unsafe option as in the case where your credit card might get lost or stolen, anybody can take advantage of your credit card, but that is not true. These cards come with such security that there is very less possibility of any fraudulent transaction taking place through this card. Banks always take the required steps to protect these cards. The banks provide you with the option to set the maximum limits of paying through these cards without entering a pin.

Also, The Reserve Bank of India has set the contactless payment limit of Rs. 5,000 per transaction while paying through contactless mode. If you try to complete any transaction which is more than Rs. 5,000 through a contactless mode, the payment would be declined. You will have to use a contact payment method and enter the credit card PIN to complete any transaction that is above Rs. 5,000.

There are various options present in net banking wherein you can set different amount limits on the types of transactions taking place through these cards. For example – a different limit while paying online, different while paying through POS, different while making international payments, etc. Therefore using credit cards without a PIN is quite safe till the time you are using them responsibly. But in the case where you come to know that your card has been stolen and is contactless payments enabled, you can always inform the customer care of the issuer card about the theft and then you would not be held responsible for any fraudulent transactions taking place through your card.

Bottom Line

Using credit cards without a PIN can be a great option. It enhances the speed of your payment and saves your time as well. This card can come in handy for elderly people who tend to forget things. You can set up a payment limit on their card when using it in a contactless manner and it will be absolutely comfortable for them to use a credit card without a PIN. You just need to ensure that you have taken all the safety precautions from your end by setting genuine limits while using a credit card without a pin. Also, in the coming times, these methods will get a great boost in the market as they prove to be safe, and aligned to the Covid-19 situation.