The present invention relates generally to transaction cards, and more particularly to contactless transaction system and method thereof using contactless transaction card. Embodiments of the present disclosure provide a user-friendly system and method that provides a system and method to perform financial transaction at ATM and/or POS centers without inserting or tapping the card. In an embodiment, the objective of the present disclosure is to perform financial transactions at ATM's without inserting or tapping the bank card using Mid-Range Communication (MFC) technology.