What are Contactless Payments?
What are contactless payments and why does your business need them?
Contactless payments are a newer form of payment transactions. Within your credit/debit card, there is a small chip that is embedded to emit radio waves at a short-range. When your card comes in close contact with the payment terminal, the information is transferred from your card to the terminal and the transaction is complete. This is called Near-Field Communication (NFC), where both the card and terminal must obtain for the transaction to process. Also, an individual can essentially upload their credit/debit card to a smartphone app and pay using their device. Instead of swiping or inserting their card into the terminal, they simply hover their smartphone device over the terminal to complete the transaction just like the card method. This is also referred to as “tap to pay”.
What makes it safe?
When you pay via “tap to pay” the transaction usually occurs within a few seconds. Though the process is quick, the security is not compromised. The microchip embedded in the card is safer than the typical credit card magnetic stripe because there is a one-time code created for each transaction. The code is generated and sent to your account, but only your account number is transmitted. Your name, address, and card verification code aren’t transmitted. The biggest threat to fraudulent activity is if your card physically is stolen.
Why does your business need a contactless terminal?
Over the past two years, contactless payment trends have been at an all-time high of usage. Banks are distributing more contactless cards than ever. Customers want to utilize their card capabilities while also staying precautious and safe with contactless surfaces. Contactless payments have quicker transaction completion times which increase customer service. Terminals can also process on AT&T, Sprint, Verizon, or Wi-Fi. We offer support for CDMA, GPRS, IP or Dial environments. ECS is pleased to provide these “made for purpose” terminals.