A little less than a month ago American Express introduced a completely refreshed Gold card. The new comes with a ton of amazing benefits and features not offered by the previous versions of the card. While the benefits offered by the card are great, today I want to focus on something else about the card. Specifically, I want to discuss the fact that all new Metal American Express Gold cards are contactless.
For year Amex has offered contactless versions of many of the US issued cards. However, to get the contactless version of the card you would have to call Amex and request it. There was no fee or charge for requesting a contactless card and I always found it a bit odd that contactless cards weren’t the default option. Today, it seems American Express is defaulting to contactless cards which is evident in the release of the new Metal Gold card.
I suspect many people have no idea what contactless credit cards are. I’ve written about them in the past, but today I want to dive a little deeper into the subject of contactless cards and why I find it interesting that American Express is now sending out contactless cards by default.
A Brief History Of Credit Cards
Credit cards have been around since about 1950. Back then the cards were printed on thick paper but were about the same size and shape as modern cards. As cards became more popular, and more frequently used, card issuers began issuing plastic credit cards around 1960. American Express coincidentally was the first issuer to issue a plastic card.
As cards became more popular card issuers began issuing cards with raised numbering and lettering. The raised numbers and letters meant merchants could swipe the card with a flatbed. The flatbed was a large device in which the merchant would place the card under a piece of carbon paper and then “swipe” the card. That paper then contained your information which would be then used to charge the card. It’s an antiquated system now, but it lasted for quite a while.
In 1970, IBM changed the credit card world forever with the introduction of the magnetic strip. The magnetic strip meant merchants could do away with clunky flatbeds and simply swipe the card into a computer. The computer would then send that information to the card issuer and charge the customer. The process worked great until a few years ago.
In 2015, card issuers began the switch from the magnetic strip to EMV technology. Most of us know of EMV as the “Chip” we are now forced to used instead of the magnetic strip. Card issuers prefer EMV over the magnetic strip because the transaction is more secure which helps reduce credit card fraud.
Contactless Credit Cards
While EMV transactions may be more secure, they also take much more time than a traditional card transaction. With EMV you have to put the card in the reader, wait a few seconds, and then withdraw the card from the reader. These transactions have sped up, but for the most part they take about 5-10 seconds at minimum.
Contactless credit cards solve that issue entirely. With a contactless transaction all you have to do is tap your card to a contactless card reader. The transaction uses similar encryption as a EMV transaction which means the payment is also quite secure.
Another great feature about contactless cards is that they are accepted nearly everywhere that accepts chip cards. Almost all new chip card readers also accept contactless payment. Yes, it’s true. Next time you have to complete a chip transaction look for the little contactless logo on the screen of the card reader. Chances are it is a contactless payment reader as well. The logo looks like this.
If the card reader you are using features this logo, then you can absolutely use your contactless card to complete the transaction. Likewise, you may also be able to use Apple or Android pay as well.
Contactless American Express Metal Gold Cards
As I mentioned earlier, American Express made an interesting decision to roll out the new metal Gold card in the contactless version. On all of the marketing material I found on the card, every image featured the contactless logo displayed on the front of the card.
Unlike other cards American Express appears to only be issuing contactless versions of the new metal Gold card. This means, if you have the new metal Gold card that you can use the card at contactless readers anywhere in the world.
Just to be clear, American Express also appears to be issuing contactless cards by default with the new Hilton Honors card. However, it does not appear that contactless is the default option for the Platinum card based on American Express’ homepage.
However, as I mentioned earlier, you can call and request a contactless Platinum card (or many other Amex cards) at any time.
What Does This All Mean?
Well, given that a lot of people now have contactless credit cards in their wallets than a month ago I think it’s important to highlight that contactless cards could be accidentally scanned. For example, if you keep your contactless transit card in your wallet you could end up scanning your transit card and your new Amex Gold card at the same time. If you do this, you will be charged double for your ride without your knowledge and it’s difficult to dispute the charges since you technically made the purchase.
It also means that, well, you can use contactless payment. The other day I saw someone swipe their American Express metal Gold card at Starbucks. The terminal in which they swiped their card was a contactless reader and they could of instead simply tapped the card on the reader. So, if you have a new Gold card be sure to use contactless payment because it’s quicker.
Finally, it means that when traveling internationally you can (and should) use contactless payment. See, much of the world uses Chip-And-Pin EMV transactions. With Chip and Pin you put your card in the reader and enter a pin to verify your identity. Sadly, in the US, we use Chip and Sign technology. So, if you swipe your card abroad the merchant has to print out a receipt (rare) and make you sign it. This is annoying because it points out that you’re foreign and often tellers don’t have a pen handy. I’m not kidding. Overall, I just find it much simpler to use contactless payment when traveling outside of the United States.
Final Thoughts
I’m excited that American Express has chosen to provide contactless credit cards to all new metal Gold card customers. I much prefer contactless payment to either swipe or chip transactions so I appreciate the decision. I’m also excited because I think as more people become familiar with contactless transactions they will be more comfortable with Apple/Android pay. Again, I prefer mobile payment to carrying around a massive wallet so I again appreciate this change.
Ultimately, I find all of this interesting because I think it’s the beginning of the end for credit cards. What I mean is that by eliminating the need for raised numbers, chips, and magnetic strips the “card” doesn’t have to look like a credit card. All card issuers have to provide is the tiny NFC chip included in contactless cards. So, I’d be curious to see if card issuers begin getting creative with the size/shape of credit cards going forward.
Likewise, I think as more card members get use to contactless transactions the more likely they are to use mobile wallets. As that change happens I’d be curious to see if card issuers even bother sending out physical credit cards. I’d be willing to be in the not to distant future you will have to call to request a physical card as consumers become more comfortable with mobile wallets.
