Contactless Is The Future Of Payments

Jul 29, 2021

Although the effects of the COVID-19 pandemic on the economy has proven disastrous, retailers have been forced to modernize their current systems at warp speed. The result has been the accelerated adoption of contactless payments. 

The acceptance of contactless payments (Google Pay, Apple Pay, and tap-to-pay cards) has soared like never before due to consumer concerns for safety. And one thing is certain, since this payment method has proven to be both convenient and quick, this payment option is destined to be more pervasive in many industries in the future. 

The Benefits Of Contactless Payments 

There are many benefits to accepting contactless payments. From the outset, adopting this form of payment will help you stay ahead of the competition. A recent study showed that 23% of businesses have lost a sale because they did not offer their customers a contactless payment option. 

With the end of the pandemic largely unknown, consumers are still concerned about their health and safety. Contactless payments eradicate all these concerns since both customers and employees would be making less contact with payment terminals. This form of payment also offers speed as a major selling point as it directly translates into shorter waiting times and social interactions. 

Security Is Essential

With any new technology, it is important to address any payment security risk. As you move forward with accepting contactless payments, here are some tools to take advantage of to mitigate any potential risk:

 

  • Card Transaction Qualifiers (CTQs)

 

CTQs decrease fraud attacks by carrying out actions that verify a transaction like transaction limits for cardholder verification (CV). 

 

  • Real-Time Authorization

 

With real-time authorization, transactions that are sent online undergo immediate authorization. Card issuers can also conduct anti-fraud checks and can notify the merchant of any suspicious activity.

 

  • Offline Transactions

 

Contrary to real-time authorizations, offline transactions need more authentications, such as PINs.

 

  • Tokens vs Card Numbers 

 

The number on the contactless card is not similar to the tokens used by mobile wallets. If a transaction requires a PIN to be entered and it is not given, an anti-fraud mechanism is activated. 

 

  • High-Value Transactions

 

There are some transactions that have limits on the amount processed and could require additional validation. 

Pandemic Ushers In New Reality In Payments 

The modernization of payments is moving at such an exceptional speed that businesses must move quickly to adopt these new technologies, or face being left behind. Gone are the days in which our payments were largely dependent on devices. The new reality is that payment acceptance is going exclusively to the cloud. 

By adopting a “cloud-based payment infrastructure,” your business is likely to remain flexible. Using cloud terminal software can help you quickly transition into the contactless world without having to resort to “manual payment integrations.”

Businesses can encourage repeat business by providing a completely frictionless experience. This can be done by offering multiple payment options, emailed receipts, and automatic loyalty enrollment. 

Businesses Must Keep The Pace Amidst Rapid Change

With the prevalence of customer health concerns as well as mandates from public health authorities, businesses must continue to evolve to include contactless payments as part of their operations. By understanding and taking advantage of these trends, they will be better positioned to pivot their business, should more changes and advances in technologies occur. 

Let us help you get a high risk merchant account today!

Get Started

Award winning.

  • 2012
  • 2013
  • 2014
  • 2015
  • 2016

Having a merchant account allows an account holder to take advantage of merchant cash advances. When a merchant is approved for an advance, the business agrees to receive a lump sum of cash in exchange for an agreed-upon percentage of future credit card sales.

Pricing varies depending on the merchant’s industry, past credit card processing history, the type of business seeking the account, average ticket sales, and average transaction volumes.

Yes, EMB works with merchants who are building their credit, as well as those who have poor credit. EMB also approves merchants that have no credit card processing history and businesses that have lost their merchant accounts due to high chargebacks.

Several factors influence a merchant’s risk level. Though only one factor likely will not get a merchant classified as high risk, a combination of these may: business size, location, and industry, credit score, credit card processing history, a industry’s reputation for excessive chargebacks, a prior history of high chargeback ratios, and whether a merchant exclusively sells online.

Virtual terminals are stationed on a merchant’s website, making it easy for customers to make a payment or purchase online. Merchants or a payment processor can easily set up virtual terminals, so online businesses can accept credit and debit card and e-check transactions.

A merchant account is a business account with an acquiring bank. Without this business account, which actually works more like a line of credit, a merchant cannot accept and process credit and debit card transactions. Businesses need a merchant account to accept major credit cards via a static point-of-sale terminal, mobile card reader, or through a virtual payment gateway.

After filling out EMB’s simple online application and submitting any necessary, requested documents, many merchants get approved within 24 and 48 hours.

EMB specializes in working with high-risk merchants. EMB works with many merchants, including but not limited to businesses in these industries: gambling and gaming, adult entertainment, nutraceuticals, vaping and e-cigarettes, electronics, tech support, travel, high-end furniture, weight loss programs, calling cards, e-books and software, and telecommunications.

Live Chat