Near-Field Communication (NFC) is a set of communication protocols that enables interaction between two electronic devices within a short range—typically 4 cm (1.5 inches) or less. NFC allows for low-speed wireless communication and can be used to bootstrap more complex wireless connections through a simple and secure setup.
How does NFC technology work?
NFC has brought a wave of modernization to the banking and financial sectors. It is widely used in POS acquiring services, offering a convenient and efficient contactless payment experience. In today’s fast-paced world, this technology helps save valuable time by eliminating the need to insert or swipe a card into a POS machine.
Instead, with an NFC-enabled POS terminal, users can simply hold their NFC-supported card within a certain range of the machine. The terminal automatically reads the card's information without any physical contact. For transactions within a specific limit, there's no need to enter a PIN—making the payment process even faster.
NFC technology in modern ATMs
Recently, several banks have started integrating NFC technology into their ATM systems and banking infrastructure. With NFC-enabled ATMs, customers can access banking services by simply tapping their NFC-supported cards on the machine—without inserting the physical card.
This not only provides added convenience but also helps users avoid common issues like card capture, where the machine fails to return a card. As a result, NFC-enabled ATMs offer both ease of use and enhanced reliability in everyday banking transactions.
What do you need to use NFC services?
To benefit from NFC technology, both your bank card and the terminal or ATM must support NFC. You can identify an NFC-enabled card by looking for the NFC symbol—similar to a Wi-Fi signal—printed on the front or back of your card. If you're unsure, you can always confirm by calling your card issuer’s customer service line.
Important Security Tips for NFC
Never share your card’s PIN with a merchant or any third party under any circumstance. Your PIN is confidential and must be protected at all times. Always shield the keypad with your other hand while entering your PIN on any POS machine or ATM. This reduces the risk of your PIN being observed or captured by hidden cameras or onlookers.
Under NFC technology, card payments can be completed without entering a PIN for transactions up to a certain amount. However, this limit is entirely dependent on your card-issuing bank’s policy. Therefore, it is important to check with your bank to find out the exact transaction limit that applies to your card for PIN-free payments.
While NFC technology offers the convenience of PIN-free transactions up to a certain limit, it also comes with a security risk—if your card is lost, someone else could misuse it without needing your PIN. To stay protected, you should immediately block or suspend the card through your bank’s official channels if it's ever lost or temporarily missing.
If you don't wish to use NFC or contactless payment services, you can request to disable this feature by contacting your card issuer through their designated service channels.
In conclusion, NFC technology offers a fast, convenient, and modern way to make payments and access banking services, enhancing user experience in today’s digital world. However, like any technology, it comes with certain risks—especially if a card is lost or misused. Being informed and taking proper precautions can help you enjoy the benefits while minimizing the drawbacks.