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Contactless payment service to be available for debit, prepaid card users: BB

From now the debit card users will be able to make card-based payments through Contactless Payment Service using NFC technology.

Earlier the service was available for only credit card holders.

Bangladesh Bank (BB) has issued a circular stating that from now debit card holders will be able to make payment by Near Field Communication (NFC) or contactless payment service.

Transactions can be made by keeping the card at a distance of 4 cm from the NFC technology card. However, other security measures including PIN will remain in force. As a result, the card need not be handed over to anyone or to the point of sale for the transaction

According to the circular issued by the Payment Systems Department of Bangladesh Bank, the use of such services through credit cards has become popular as card transactions are easy and dynamic.

The use of this technology in credit card as well as debit and prepaid card transactions is expected to increase electronic transactions, the circular said.

The BB has instructed all banks, mobile financial services providers, payment service providers and payment system operators to comply with the following guidelines regarding this service.

The transactions can be conducted using NFC technology on debit and prepaid cards with EMV chip technology.

The maximum payment limit for debit and prepaid cards through NFC technology is Tk 3000. At the same time, two-steps security measures have been relaxed in these transactions.

However, the information of each such transaction should be informed to the customers immediately through SMS, said the circular.

Banks will provide these cards and will be able to determine the maximum number of daily transactions through it.

The EMV chip is a chip with special security features developed by Euro Pay, MasterCard and Visa.

According to Bangladesh Bank, there were around 2.56 lakh debit cards in the country in January while credit cards were over 16 lakh. Besides, there are 12 lakh prepaid cards.

Source: United News of Bangladesh