Here is a picture of what a sample Contactless Payments dual magnetic-stripe
and smart card chipped card looks like:
Contactless payment cards use the latest technology to send card
data via radio frequency to a terminal reader. A cardholder simply
holds or waves their card in front of the secure reader, waits
of a light to come on and a beep to signal that the purchase is
complete. The contactless payments device is attached through
a cable to a standalone terminal or a point of sale systems. Instantaneously
the transaction data is routed to the processing network just
like magnetic stripe read cards you are probably used to. It should
also be noted that unlike PayPass which you may have used on highways
and toll booths, these cards use very short radio waves (Radio
Frequency Identification or RFID) so inadvertent sales by just
walking by are not possible.
Like Contactless Cards
In addition to speeding
up the transaction, customers like the idea that the card never
leaves their hands. Visa, MasterCard, and American Express have
all enacted rules that dispense with the requirement for a signature
for most purchases under $25.00, making the transaction even faster.
Many issuers are also providing consumers with key fob cards freeing
them from having to search their wallet or pocketbook. In addition,
the major cell phone manufacturers are now including a special
chip in their new phones so that consumers can download their
credit card data into the phone and then simply wave their phone
in front of the card reader. No more fumbling for coins or having
to open their pocketbook in a line of strangers. There is also
zero liability for unauthorized purchases.
Like Contactless Cards
Merchants in time sensitive businesses especially like speedier
transaction times resulting in moving lines. Studies and tests
have shown that contactless payments are significantly faster
than traditional mag-stripe cards (53% faster), cash (63% faster),
and checks (an eternity). Consumers tend to spend more on purchases
with contactless cards versus cash purchases at the same location.
It will attract new customers who have received the card and want
to try it out and then keep them coming back because of its ease
of use. In addition, it sets you apart from merchants who have
not embraced this newer technology and lets your customers know
that you are aware of the latest technology.