What WIFI symbol means on a payment card?

Do you know if your card has the WIFI symbol, it means that it can process contactless payments through NFC (Near Field Communication)? The symbol indicates the card has a radio frequency identification chip inside. This allows short range data transfer without the need to touch the point of sales (PoS) device. No need to swipe the card!

How it works?

When you wave the card in front of a reader that is compatible, the reader sends a signal that wakes up the RFID chip in your card. Your credit card then wirelessly gives the reader the information that it needs to process the transaction. You don't even have to take the card out of your wallet - you just should wave it within a couple of inches of the reader.

Visa claims that contactless cards work only when the card is within 4 cm of the PoS. This payment method is growing in developed countries. 

In India, RBI allows you to make a transaction of up to rupees 2000 without a pin. If the amount exceeds that, then a pin will be necessary to complete the payment.


Drawbacks

• It's technically possible for someone to read your credit card by getting close to you with a near-field card reader.
• If you have multiple contactless cards in your wallet, terminals might not be able to tell which one you want to use at any given time and give an error (I see this as a way of defense to theft!). In such cases, you take out your card and then pay.