CONTACTLESS PAYMENTS: NOW AND FOR THE FUTURE
WHAT ARE CONTACTLESS PAYMENTS?
In today’s environment, merchants and consumers alike need the ability to process transactions safely without physically touching the equipment. This method is referred to as “contactless payments.” Contactless payments allows you to:
- Process electronic payments without touching the customer’s card
- Adhere to government social distancing guidelines
- Protect your business with the same high level of EMV security
- Accept ‘tap to pay’ and ‘virtual wallets’
WHAT TYPES OF CONTACTLESS PAYMENT ARE THERE?
There are two major forms of contactless payments where consumers can purchase products or services with a credit or debit card using NFC technology without touching the POS terminal.
Tap to Pay: One method of contactless payments is called ‘Tap to Pay’ where the customer’s credit card is held close to the card reader to process the transaction. To enable this type of transaction, the terminal with need to have Near Field Communication (NFC).
Virtual Wallets: Another method of contactless payments is using ‘Virtual Wallets’ via a mobile device. Examples of virtual wallets include Apple Pay, Google Pay and Samsung Pay. These methods of payment are becoming more popular especially in our current environment. If you would like to add Samsung Pay to what you accept, your equipment must include the technology known as magnetic secure transmission or MST.
WHAT IS NFC TECHNOLOGY?
NFC stands for Near Field Communication. It is the method used between two devices to speak electronically to each other. In order to use this technology, both the smart device and terminal must be NFC enabled.
WHAT IS MST TECHNOLOGY?
In addition to using NFC like Apple Pay and Google Pay, Samsung Pay also has what is known as magnetic secure transmission (MST). MST allows people to use Samsung Pay on almost any of the older magnetic card readers. Given how slow the U.S. has been to adopt this technology this makes Samsung Pay the most useful form of contactless payment that is currently available. The biggest drawback with Samsung Pay is that it’s only available on Samsung devices.
ARE CONTACTLESS PAYMENTS SECURE?
Contactless payments offer a highly secure way to process payment cards. The way contactless payments work is a unique one-time token is sent to the payment terminal for each transaction. The token does not contain any of your card details, so if the purchase is compromised that token cannot be used to make another purchase and the hacker won’t have your card information. This added layer of protection is the same system that is used when you insert your card’s chip into a card reader, except contactless payments process much faster (in about half the time). Mobile wallets also have the added step of needing to verify with a PIN, password, fingerprint or facial recognition before a payment can be made.
One common concern is that thieves could use NFC card readers to steal your data electronically by getting physically close to your wallet. However, any evildoer would need to extremely close and thanks to tokenization they won’t be able to swipe your card data. Not only that, but experts agree that this isn’t a viable threat. Think of it this way: You don’t need to be faster than the bear, you just need to be faster than the people you’re with. There are much easier ways for criminals to commit credit card fraud and using contactless payment methods is one way to move yourself to the front of the pack.
HOW DO I ACTIVATE NFC?
Each of the “Tap to Pay” providers have specific instructions on adding a credit, debit, or prepaid cards to a customer’s mobile device. Please refer to the below links for specific instructions.
Let an EPSG Sales Professional Set You Up with Contactless Payments Solutions
EPSG offers a broad range of terminals and peripherals that enable contactless payments to allows both the business owner and consumer to process transactions safely. For further information, contact an EPSG Sales Professional at email@example.com or complete the brief form below and we will get back to you shortly!