Contactless payments have gained popularity during the COVID-19 pandemic as a lot of people use them to avoid touching and risking exposure to germs while making purchases. If your business hasn’t yet jumped on the bandwagon and isn’t yet, it’s time to consider the benefits this technology could bring to you.
Contactless payments are made by placing a chip-enabled mobile device or card on the terminal at the time of checkout that then sends a transaction to the card issuer to authorize. The card is then requested to confirm the transaction with a checkmark, or by a sound.
Contactless payments offer significant security benefits. Contactless transactions are authenticated. They are not like magnetic stripe cards which can be copied easily with skimming devices. Only the bank on https://southbeachcapitaladvance.com/how-consumers-and-merchants-make-contactless-payments/ record has access to transaction data. Typically the signature or PIN is not required for purchases that are made through contactless however, the cardholder’s credit issuer might require verification for transactions that exceed the floor limit set by the issuer that is communicated to the merchant by the card issuer through chip that is embedded in the card or mobile device.
Consumers are also able to make contactless payments through their smartphones or wearable devices, such as smartwatches. By connecting their card to a digital wallet like Apple Pay, they can use their smartwatch or smartphone at the point of sale to purchase. N26 accounts come with the ability to use a virtual Mastercard that is enabled for contactless, and our mobile app offers easy management of your card settings.