Accepting contactless payments, a merchant guide.

Almost all UK banks issue contactless cards to account holders. The average contactless credit card payment is £8 and on debit cards it’s £6. Contactless technology is becoming increasing popular amongst clients in various industries, namely restaurant, supermarkets, transport felicities and cafes. It enables customers to make quick payments without having to enter their unique pin number when using contactless payment systems. We will look at how contactless transactions work shortly. The limit for these types of payments within the UK is currently £30. Contactless devices include the following:

· Credit card and debit cards

· Smart phones including not only Apple Pay but Android devices

· Wearable devices such as watches

· IPad and tablets

· Key fobs

· Stickers

Business owners ask us regularly ‘how secure is contactless payment?’ understandably looking after your customers security is a priority and there are a lot of myths surrounding this relatively new technology. There are three main points which should provide both you and your customers with reassurance;

· Firstly when it comes to security contactless payment technology works in exactly the same way as the Chip and PIN secure system, to find out more about this please click HERE.

· Every single contactless card comes with robust security protecting your clients from fraudulent transactions. Contactless transactions work when the card is within centimetres of the Contactless Credit Card Reader. This makes it almost impossible for the transaction to be interfered with while the card is in use.

· There have been no confirmed reports of money being stolen from a contactless card or device still in the owners possession, within the UK.

The majority of consumers expect most outlets to accept contactless payments. The benefits of having a contactless terminal can be advantageous to not only clients but to business owners too.

REDUCING COST

· Some Merchant Providers charge lower or nil fees on contactless debit card transactions

· Staff intervention is reduced dramatically when using a contactless card machine

· Cash handling reduction

· Receipt handling reduced, contactless receipts only need to be issued when a customer requests one

RISK REDUCTION – as with all card payments

· Assured payments

· Audit trails

CUSTOMER ADVANTAGES

· Speedy transactions

· No restrictions due to the amount of cash on the client’s person at the point of them wanting to buy

· Easy accessibility, meaning an increase in footfall to businesses.

As business owners, the disadvantages of contactless payments are very limited, speak to our advisors today. They will help you secure the very best contract for accepting contactless payments.

New contactless rules

It was recently announced that by Visa that all chip and pin machines which are currently installed, must accept contactless payments by 31st December 2019. Fees for non-contactless payments will apply from 1st January 2020.

To avoid additional costs it’s important to make sure your card machine is contactless ready before the above dates.

Speak to our experts today to assist with new PDQ machines, which are contactless ready.