Waving your credit card in front of an electronic sensor like a magic want to pay for goods and services sounds too good to be true. But as long as you are willing to pay the bill when it comes, this technology is available to you today. If you can qualify for a credit card, you can qualify for the new contactless cards.

Contactless credit cards are based on radio frequency identification (RFID) technology. This is the same system that toll roads have been using for years and the one that businesses like Wal-Mart use for accurate inventory tracking. But before you jump on the contactless bandwagon, here are some things you need to know:

' The information that is usually in the magnetic strip of a regular credit card is stored in a tiny chip inside the contactless card. So if you damage the chip, you render the card unusable.

' RFID transmissions are not encrypted. Most credit card issuers are not concerned about this, but it does present the possibility for theft. A savvy thief could stand nearby and intercept the transmission. The stolen data, however, would be impractical for the thief, since a different authorization number is transmitted with each transaction.

' If your current credit card issuer already offers contactless cards, you may be able to get one without having to open a new account. Check with your credit card issuer before applying.

' Remember that contactless cards are still in the testing phase in some cities. So this technology will not be useable everywhere. A store has to be equipped with a special RFID reader to accept the cards. Eventually, they should be in most convenience stores, fast food restaurants, and gas stations.

' Finally, consumers who have used the contactless cards affirm the ease of use at the check out counter. But a side effect of this convenience is the tendency to spend more money. So be conscious of what you are spending and don't think just because it's easy to use means it will be easy to pay later.