Digital payments have changed the way people shop and make everyday transactions. While cash was once the preferred payment method, debit cards, credit cards and UPI have made payments much faster and more convenient.

Card payments have also evolved. Earlier, customers had to swipe or insert their cards into a Point of Sale (POS) machine and enter their PIN. Today, many cards offer a simpler option: just bring the card close to the machine and the payment is completed within seconds. This facility is known as Tap & Pay or contactless payment.

But how does the machine deduct money without inserting the card or asking for a PIN? Is the technology secure? And can someone steal money from a card kept in your pocket? Here's what you should know.

What is the Tap & Pay facility?

Tap & Pay is a contactless payment feature that allows customers to pay using a debit or credit card without swiping or inserting it into a POS machine.

To make a payment, simply bring your card close to the merchant's payment terminal. The machine detects the card and processes the transaction within seconds.

Cards that support this facility generally carry a contactless symbol, which looks like a series of curved radio waves. If you see this symbol on your card, it indicates that contactless payments are supported.

How does NFC technology make contactless payments possible?

Tap & Pay works using Near Field Communication (NFC) technology. It allows two compatible devices to exchange information wirelessly over a very short distance.

A contactless card contains a small chip and antenna. When the merchant enters the payment amount and activates the POS machine, the terminal sends out a radio signal.

When you bring your card close to the machine, usually within a few centimetres, its antenna receives the signal and activates the chip. The card then securely communicates the information required to process the transaction.

This makes it possible to complete a payment without physically inserting or swiping the card.

How is money deducted without entering a PIN?

One common concern about Tap & Pay is that payments can sometimes be completed without entering a PIN. However, contactless transactions use security mechanisms to protect cardholders.

During a transaction, the card generates transaction-specific security information. The payment terminal sends the required details to the payment network and the bank for verification.

The bank checks the transaction and approves or declines it. If approved, the POS machine confirms the payment, usually with a beep or confirmation message, and the amount is deducted from the account.

According to RBI rules, contactless card transactions in India generally do not require a PIN for payments of up to ₹5,000. Transactions above this limit require additional authentication, such as entering the card's PIN.

Important precautions while using Tap & Pay

Although contactless payments are designed to be convenient, cardholders should follow a few basic precautions:

1. Always complete the payment in front of you and avoid handing your card over unnecessarily.

2. Check the amount displayed on the POS machine before tapping your card.

3. Check your SMS alerts or banking app notifications after every transaction.

4. Immediately report a lost or stolen card to your bank and get it blocked.

5. Check whether your bank allows you to reduce the contactless transaction limit through its mobile app.

6. Disable contactless payments if you do not use the facility and your bank provides that option.

Can someone steal money from a card kept in your pocket?

Videos and social media posts sometimes claim that fraudsters can withdraw money simply by bringing a payment machine close to someone's pocket.

However, such transactions are not as easy as these claims suggest. NFC technology works over a very short distance, so the card and payment terminal need to be brought close to each other.

Transactions also require authorisation through the payment system, and the terminal must be configured to process payments through a merchant account. Nevertheless, cardholders should not ignore security precautions.

Is Tap & Pay safe to use?

Tap & Pay is designed to make everyday transactions faster while maintaining security through transaction-specific information, payment verification and transaction limits.

The key is to use the facility carefully. Always verify the amount before tapping, monitor transaction alerts and report suspicious activity to your bank immediately.

With these simple precautions, contactless payments can offer a convenient way to pay at shops, restaurants and shopping malls without repeatedly swiping or inserting your card.