Tap Payment Table of Contents
Contactless payment systems are basically credit cards and debit cards, key fobs, proximity cards, smart cards, and other biometric devices, such as smartphones and portable devices, which employ near field communications or RFID technology for making contactless, secure online payments. These can include items such as proximity cards worn on the wrist or around the neck, which are accepted at retail stores, ATMs, and online websites. They are often used for access control, such as with ATM machines, and for payment of services and goods purchased with a credit card. The contactless part of the system may be RFID imprinted on the plastic card, or it may contain the required security features such as a fingerprint lock or a digital signature, both of which provide a secure element for the transaction of sensitive personal information.
This type of technology has been used in many places, from high-end department stores to fast food restaurants, and is now being extended to the hospitality sector. This expansion is likely to raise awareness of this technology, which could lead to widespread use in the hospitality sector, and the adoption of more sophisticated contactless payment methods, such as 'pin code' systems. The adoption of such systems in the hospitality sector will undoubtedly reduce fraud in the supply chain, and increase service levels, productivity, and profitability.
History of Contactless Payment Technology In recent years, there has been a major increase in the use of contactless payment technology at retail locations. The main benefit of such technology is that it offers a fast, easy way to pay for items in stores, restaurants and even in offices. If you're going to start using contactless payments, it is important that you become familiar with the basics of this payment method first. There are basically two ways that a contactless payment system can work, so let's get to know them both.
First off, there is the debit-based transaction system. With this kind of system, consumers have to insert their plastic credit cards or debit cards into a reader, and then follow instructions provided by the system to complete the transaction. Generally, a contactless payment system can be used with smartphones, smart phones and even with debit or credit cards that already have contactless technology installed. It is the most convenient type of transaction method for most consumers, since the whole process involves only making a simple click to complete a simple transaction, as opposed to having to use your credit card or any other payment method.
Second off, there is the RFID-based transaction system. This type of system uses a tiny computer embedded in the item that the consumer is buying and communicates with a transponder located at a retailer's place of business or at the point of sale for items sold via electronic coupons. The computer transmits the information needed by the customer, which causes the retailer to charge the appropriate amount of money to the consumers' credit cards or debit cards. However, this is generally only applicable to products sold via electronic coupons, since ordinary credit cards cannot be used to purchase products that are bought via coupons.
It is evident that there are many uses of RFID in our daily life. These are usually used in biometric solutions and other industries. The technology of transponders and readers has made the transactions faster, more accurate and efficient. Thus it has developed into a system which can be used anywhere in the world. Though this was used only for automatic transactions, but it has evolved into a useful contactless payment system.
There are different usages for RFID payments in which we can find some interesting options. One of the examples is the usage of RFID to track and monitor our pets. This not only helps us keep track of their health in terms of the food and water consumption, but also monitors our kids, keeping them safe from any harm. Similarly, there are other usages for RFID which includes usages for telematics such as calculating the mileage, calculating the speed and time of our journey and also calculating the cost of a trip.
In addition to these usages for contactless payments, it also allows the users to receive messages from their loved ones or friends using their mobile phones. Through this, one can keep in touch with their near and dear ones at any point of time. Apart, from these it also allows the user to purchase items online without the need of going to the store personally. Thus it can play multiple roles both at the personal and professional level.
Contactless payments are becoming the norm in many ATM's and credit card machines. The main reason for this is the increased use of electronic means of paying which includes using contactless debit and credit cards to pay for products and services on the Internet. A person that makes a purchase knows right away if they have enough money in their account to pay for whatever it is they want to buy so the need for security of contactless payments has been born. This is where the need for a secure connection between the customer (ATM) and the company (CCM) comes into play.
One way to provide security for contactless payments is to attach a microchip or 'PIN' to your debit or credit card. The customer needs to punch in the pin number that goes on the back of the card as a means of verifying that the information is authentic before they can proceed with the payment. The customer also needs to remember that this pin needs to be changed each time they make a contact or swipe their card at a store. Many companies offer multiple different pin systems but some are very picky about who gets to use their security pin. It would be in the customer's best interest to look into what different companies may require before making a commitment to use their payment scheme.
Another way to provide security for contactless payments is to equip your POS or point of sale terminal with a smart chip that runs on a battery. This chip is attached to the machine and as it is triggered by the movement of the card (especially by a touch or a hold), it automatically displays an image that tells you whether or not you have enough money in your account to cover the transaction. Some companies also offer a type of 'panic button' functionality that allows you to manually trigger the alarm just by pressing a specific key on your keyboard. While these aren't foolproof deterrents for fraud, they can definitely provide a great deal of security for your customers when they leave your establishment.
Scroll down to read our indepth Payment Platforms guide. What you should know, Payment Platforms features, price plans and support. Pros and Cons of Payment Platforms as a payment gateway, everything is explained below.
Spreedly is a software company that specialises in payment-gateway software for small to enterprise level businesses.
Spreedly is listed as the best payment-gateway software related to Payment Platforms. Spreedly was founded in 2008 in Durham, NC and currently has over 79 employees registered on Linkedin.
From us to your inbox weekly.