Educational only · Card technology
Tap-to-pay &
contactless credit cards.
Tap-to-pay uses NFC technology to send encrypted payment data from your card or phone to the terminal. To you it feels instant — but behind the scenes, it still follows the same authorization and settlement flow as a normal card payment.
This guide explains how contactless limits work, when you may be asked for PIN, and how mobile wallets change the security model compared to a plastic-only payment.
- What “contactless” technically means at the terminal.
- Why small purchases may not require PIN — until they do.
- Differences between plastic tap, phone tap and wearables.
Informational only. Not a safety guarantee, not financial advice. Implementation details vary by issuer, country and network.
Quick facts
- NFC stands for Near Field Communication — very short range.
- Terminals enforce contactless limits that vary by country and merchant.
- After several small taps, you may be asked for PIN to re-verify you.
- On phones, the wallet usually requires biometrics before tap.
- Lost cards should still be blocked quickly, even with contactless.
How contactless payments are processed
When you hold your card or phone near the reader, the terminal and your card perform a short wireless “handshake”. Encrypted payment data is transmitted using NFC, then the terminal sends an authorization request through the usual card networks.
From the bank’s perspective, a contactless payment is almost identical to a chip-and-PIN transaction. The main difference is that some low-value taps may be allowed without a PIN to speed up queues — especially in transit systems and convenience stores.
Contactless limits, PIN checks and risk management
Many markets set a contactless limit for individual transactions (for example a certain amount in local currency). Above that, the terminal will usually require a PIN or signature just like a normal card payment.
Issuers and networks also track patterns. If you make a series of small taps, the system may force a PIN check even if each amount is below the formal limit. This helps reduce the risk if a card is lost or stolen and used quickly.
Plastic tap vs phone tap vs wearables
With a physical card, anyone holding the card can attempt contactless payments until the bank or you block it. With a phone or watch, the device itself adds an extra layer: biometrics or a device PIN before the wallet can be used.
That does not make wallets “unbreakable”, but it changes the risk profile. Losing a card and losing a phone are different events with different controls — worth understanding before you decide how you prefer to pay.
For more detail on wallets, virtual cards and crypto-linked products, see the Technology & Payments hub on Choose.Creditcard.