 Contactless prepaid credit cards differ from regular prepaid credit cards in the way the information is read from them by the card reader.
A regular prepaid credit card stores its data on a magnetic stripe that must be physically swiped through a card reader or on a microchip which must be inserted into a Chip & PIN device.
A contactless prepaid credit card, on the other hand, stores its data on a microchip embedded in the card's plastic. The microchip is fitted with a radio antenna that is capable of transmitting the card's data to a card reader without physical contact.
Using radio frequency identification (RFID) technology, a contactless prepaid credit card can transmit data to a special RFID card reader when the cardholder waves his card within a few inches of the receiver.
Who accepts contactless prepaid cards?
Presently, contactless prepaid credit cards are only accepted at select convenience stores, gas stations, movie theaters, and fast food restaurants. The drive behind the contactless card movement is to persuade consumers to use plastic conveniently at places that have traditionally been cash-intensive. Doing so would speed transaction times and reduce lines. While few merchants accept the contactless payments right now, the technology is expected to catch on soon widespread rollouts are predicted in the years to come.
Who issues contactless prepaid credit cards?
Contactless prepaid cards are available from MasterCard PayPass, Visa Contactless and American Express ExpressPay.
Altair Financial Services is one of the leading issuers of MasterCard contactless cards in the UK recently trialled MasterCard contactless cards with limited edition contactless prepaid cards for the 2007 Brit Awards as well as a pilot programme to help deliver the first stadium contactless prepaid card in Europe, the Manchester City FC MasterCard® Prepaid Seasoncard with PayPass™, with MBNA and MasterCard to replace the standard season ticket currently issued to supporters.
Visit out consumer prepaid card section to find the best prepaid card to suit your needs. If you wish to use a prepaid card for your business, visit our business prepaid card section.
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