What are Contactless Chip Cards?

Contactless Chip Cards, also known as Transponder Cards, are used for automatic identification and data collection using a chip embedded with RFID-technology. The Chip Card is made out of plastic and has an integrated circuit (the Chip), which is then read by using a special card reader. The data on a Contactless Chip Card is read by holding the card in front of the card reader without the card having to make contact with it.