Credit cards and debit cards that use Radio-frequency identification (RFID) technology in order to carry out secure payments are referred to as contactless payments. There is an embedded chip in the credit/debit cards that allows holders to just ‘wave’ the card over a reader at a POS terminal.
Contactless payment explained
Contactless payments, also referred to as ‘wave and pay’, are a method of paying for goods and services which enables credit and debit card holders to complete transactions in a fast and efficient manner. Large card providing companies have designed and established their own systems for example PayPass for MasterCard and PayWave for Visa.
There are many advantages of using contactless as an online payment solution, these include the following;
- Fast – contactless payment enables customers to use a cash-free method that is designed to reduce the amount of time you spend at a POS terminal in addition to reducing the risk of handling cash payments.
- Efficient – this method provides businesses to provide a much efficient service as there is no need for cash handling as well as no wait for the ‘chip and pin’ process. There is no lag time for authorization.
- No pin – the no-pin technology enables customers to complete transactions much faster and efficiently. However, some merchants may require you to enter your pin occasionally as an additional precaution – to prevent fraud.
- Secure – this method is as secure as the ‘chip and pin’ process. In the event that a card is used without authorization of the card holder, the customer will not be held liable for the purchases.
Contactless payments are becoming more widely accepted across the globe due to the above outlined benefits it imposes for customers as well as businesses.