Six Things You Need to Know About Touchless Payments

Hustle and Cashflow is a blog that aims to educate millennials on personal finance.

Consumers have become increasingly worried about hygiene when purchasing items and services since the advent of the coronavirus. The security of surfaces like retailers’ point-of-sale credit card scanners is now being questioned. As a result, contactless or touchless terminals have become increasingly popular. Let’s take a few minutes to learn more about contactless transactions now that they appear to be here to stay.

Payments made with a contactless card are extremely safe.

Paying with plastic wasn’t all that safe before near-field communication (NFC) technology enabled buyers to place their chip-equipped cards, cellphones, or wearables near a merchant’s scanner. Cashiers with a keen eye might quickly copy numbers and security codes, then use the information to make illicit purchases.
A customer’s card or device, on the other hand, never leaves their possession with contactless purchases. Furthermore, the data is immediately encrypted and converted into a one-time-use series of random integers known as tokens, rendering the data useless to hackers.

Transactions that do not require physical contact are faster.

A credit card transaction that requires the consumer to enter a PIN or sign a receipt usually takes three to four seconds. In comparison, the time between a fast tap near the merchant’s contactless scanner and the completion of the payment is frequently less than half a second. Even though a lot of high-tech authentication and certified, point-to-point encryption happens in that brief length of time, this is the situation.
With contactless payments, customers are more likely to spend more money.
Nobody knows for sure why, but the nature of this quick and easy payment mechanism motivates purchasers to open their wallets even wider. Perhaps it’s the convenience and quickness that touchless payments give. Perhaps it’s because there’s rarely a card or tangible money transferred, giving the impression of unreality. Whatever the cause, companies that integrate touchless terminals into their digital ecosystems nearly always see an increase in sales.

It’s simple to set up and use touchless payment technology.

Accepting touchless payments is one of the best things about it because it doesn’t require a lot of complicated technology or a high learning curve. In truth, all you have to do is make sure your payment processor handles contactless transactions. If they do, they will supply you with the necessary NFC terminals. It’s even possible that your current terminal has NFC technology built in.

Processing costs are minimal.

You might be shocked to hear that contactless transactions cost less than those that are manually entered. You shouldn’t be charged any more for these touchless transactions than for standard magstripe (swiped) or EMV chip card (dipped) transactions.

Customers can still leave suggestions.

If you manage a restaurant, salon, or day spa, you may be afraid that implementing touchless payments will discourage clients from leaving tips, which your employees rely on substantially. Don’t be concerned: The display on your contactless terminal can be set up to prompt guests to add a gratuity of any amount.
Merchants and consumers alike benefit from contactless transactions because they are safe, secure, fast, and efficient. Although the pandemic will undoubtedly fade at some point, this sanitary and cost-effective method of payment appears to be here to stay. So why not include it in your checkout process?

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