The Update

Should I Use a Contactless Card?

EMVs and contactless cards both securely process transactions, but there are key differences between the two options. Let’s break each method down so you can make an informed decision when choosing how to pay.

What are EMV Chip Cards?

EMV cards have a small microchip embedded in them to create a unique transaction code every time the card is used. This dynamic authentication helps protect against fraud, making them much safer than magnetic stripe cards. Most credit cards issued today are EMV chip cards.

What are Contactless (Tap) Cards?

Contactless cards use near-field communication (NFC) technology to make payments by simply tapping a card on or near a compatible terminal. While many contactless cards also have an embedded EMV chip, the difference lies in how the data is transmitted. Instead of physically inserting the card into a reader, the card sends an encrypted signal wirelessly to the terminal. Like EMV chip transactions, contactless payments create a unique code for each transaction, ensuring the data is secure.

Should I Use an EMV or Contactless Card?

EMV chip and contactless cards both use dynamic data authentication to protect from fraud. However, they have slightly different use cases:

• EMV chip cards are generally used when a higher level of security is needed, such as during transactions where you may be required to enter a PIN. They’re also used when contactless technology might not be available.
• Contactless cards. These offer unparalleled convenience and speed. They’re ideal for low-value transactions where entering a PIN might slow you down, such as when you’re paying for a cup of coffee.

Which Method is Safer?

Both payment methods are robust when it comes to protecting your financial information. The EMV chip’s security lies in its dynamic code generation, which has been proven to reduce fraud among in-person transactions. Contactless payments add another layer of convenience by minimizing physical contact.

One security advantage of contactless cards is that they limit the number of transactions you can make before a PIN is required, adding extra protection for higher-value purchases.

Understanding the Differences

The primary difference between the two methods is in how they’re used:

• Insertion vs. tapping. With an EMV chip card, you insert the card into a terminal and may need to wait a few seconds for the transaction to process. With a contactless card, you simply tap the card on a reader and the transaction is completed almost instantly.
• Use cases. EMV chip transactions are favored in scenarios that may require additional authentication, like at ATMs or for higher-value transactions. Contactless cards are best for quick, everyday purchases.
• User experience. If convenience and speed are important to you, contactless cards can be a game changer. However, if you’re in an area where contactless technology is not fully adopted, the EMV chip card can be a great option.

Use this guide to make an informed decision about which payment method to use and when.

Credit Cards from RGCU

Are you looking to apply for a new credit card? A Rio Grande Credit Union Credit Card has competitive rates and the most robust rewards in the region. If you'd like some more information on credit or finance in general, make an appointment with our Certified Financial Coaches. They can help you understand the ins and outs of credit and if now is a good time for you to apply for a card.