What is a Contactless Payment?

Imagine a customer walking into their favorite coffee shop and grabbing a latte for their morning fix. Upon reaching the counter, all that's needed is a quick tap of their payment card, phone, or smartwatch and they're off to start the day. That's the magic of contactless payments! Contactless payments allow customers to make purchases without the need to swipe, insert, or even hand over their payment card. All thats needed is for the payment card to be held near the a point-of-sale terminal and voilà—the payment will be processed within seconds.

How do contactless payments work?

Contactless payments use Near Field Communication (NFC) technology, which enables secure communication between your device and the POS terminal. When you tap your card or device near the terminal, the NFC chip transmits your payment information wirelessly. This information is encrypted, making the transaction not only quick but also safe.

The Benefits of Going Contactless

Speed and Convenience—Reduced checkout time

Contactless payments reduce the time eventually spent at the checkout, making your customers’ shopping experience smoother and faster. No fumbling around with cash, forgetting your card’s PIN, or standing and waiting for a chip card to be processed.

Enhanced security

Security is enhanced with contactless payments because of built-in encryption and tokenization. This means your customer card’s information remains intact and private as each transaction has a unique code. As a result, sensitive card information and transaction data are never exposed during the payment process. Besides, contactless payments prevent the risk of credit card skimmer compared to the traditional card-inserting or card-swiping method

User experience

More and more businesses are accepting contactless payments which means consumers get to enjoy a much more flexible and convenient way to pay. Whether they are paying at a grocery store, buying a cup of coffee, or taking a ride, everything seems effortless and easy. With just a tap, customers can complete their purchases quickly. Digital wallets add to this convenience by eliminating the need to carry physical cards, reducing the risk of losing cards and money. Websites and apps now securely store payment information, allowing for faster and more convenient payments.

Hygiene

Customers have continued to prioritize touch-free transactionsin a post COVID-19 world. With health and hygiene making it to the top of everyone's priority list, contactless payments minimize physical contact, reducing the spread of germs.

How to use contactless payment?

Contactless cards

Almost all debit and credit cards now support contactless. Your customers can look for the contactless symbol on their card to know if it is supported. When they are ready to pay, simply hold the card near the payment terminal or credit card reader. The device will automatically detect the card and process the payment instantly. There’s no need to insert the card, manually enter PIN number, or press multiple buttons to complete the transaction.

Mobile wallets

Your customers can also use their smartphone or smartwatch with Apple Pay, Google Pay, or Samsung Pay to make a contactless payment.

When they’re ready to pay, they verify their identity using Face ID, Touch ID, or a passcode. Then simply hold the device close to the payment terminal. The device will automatically detect the mobile wallet and process the payment instantly. After the transaction is complete, your customers will see a confirmation on both their device and the payment terminal.

How to accept contactless payment?

Ensuring Your Equipment Supports Contactless Payments

To accept contactless payments, you need to make sure your payment terminals have Near Field Communication (NFC) technology. NFC enables your terminal to communicate wirelessly with contactless cards, mobile wallets, and other contactless payment devices. You can easily verify this by checking if your terminal has the NFC symbol .

Tap to Pay on iPhone

Tap to Pay on iPhone is a feature that allows you to use your iPhone to accept contactless payments from customers. Merchants can use their iPhone as a POS terminal, accepting payments from contactless credit and debit cards, Apple Pay, and other digital wallets. This feature eliminates the need for additional hardware, providing a seamless and convenient way to process payments.

Finally, contactless payment may be used with such wearable technology as smartwatches and fitness trackers, further increasing the ease associated with transactions for tech-savvy consumers.

FAQ.

Are contactless payments safe?

Absolutely! Contactless payments use quite a few security layers to help protect your information. Encryption, tokenization, and dynamic data authentication safeguard your details when processing. In addition, once either your card or device is stolen or you misplace it, you can easily turn off the payment feature from your bank or service provider.

At Helcim, we believe in empowering our merchants and consumers through better payment solutions. Our contactless payment options offer seamless, secure, and enjoyable transactions. Whether you are a healthcare professional, a contractor who wants to renew your point of sale system, or a consumer who desires ease, we can help walk you through the world of contactless payments.

What is the maximum I can pay using contactless?

Contactless payment limits vary by country and bank but are typically between $50 and $250 per transaction. Some banks will allow you to increase this limit using their mobile banking app.

Can I use contactless for online transactions?

No, contactless payments are for proximity transactions at physical locations only. You can use mobile wallets like Apple Pay or Google Pay in online transactions by selecting the means of payment.

What happens if I accidentally tap my card twice?

Contactless payment systems are designed to handle cases of double billing. If you accidentally tap your card or device twice, it will be detected by the system as a duplicate transaction, and will deduct only one payment.

Are contactless payments accepted everywhere?

Contactless payment acceptance is growing very fast, but there may be a few places that won't accept them such as establishments that only accept card payments with chip & PIN or swipe. In these cases it's always good to have another way to pay, just in case.

How do I know if my card or device supports contactless?

The Contactless Symbol will appear on your card or device. If you are not sure about it, you will have to contact your bank for details.

What should one do in the case of a declined contactless payment?

In case the contactless payment is declined, try another method of payment available to you. You can insert the card at the terminal, or you can use cash. Finally, you can call your bank for assistance on why their transaction has been declined.

Can I make large purchases using contactless payments?

If you exceed the contactless limit, you will have to insert your card and enter your PIN for larger purchases.