How Will Businesses and The General Public Benefit From Contactless?
If you live in Britain you will probably have received a new credit or debit card in the post from your high street bank during the early part of 2012, cards were reissued whether your existing one was due to expired or not and this was because 'contactless cards' which respond to radio frequencies were developed.
The new contactless technology which makes handling card transactions quicker and more efficient involves a customer waving their contactless card in front of a payment terminal rather than inserting it and entering their pincode. Originally this idea was met with a few concerns because business owners believed it would be too easy for criminals to perform unauthorized transactions but security measures have been put in place to reduce the probability of these occurring often.
Customers will be able to pay more easily making their shopping experience more enjoyable, this in turn will increase return on investment for merchant's and stimulate the economy. The measures which have been put in place to avoid fraudulent payments being made include a spending limit of £20 or lower and routine checks are made randomly which request the card owner enter their pincode for verification.
Thousands of businesses including large corporations have already embraced contactless terminals and are promoting to their customers that they 'accept contactless' by using the 'Retailer Toolkit' available on the official site.
Customers need not worry about accidental or fraudulent payments being made with these card terminals because the card issuers have sworn to refund any false charges, at any time a card holder or merchant can check their statements where contactless payments will be indicated with the official symbol.
Prior to the introduction of the new system in the UK, beta tests were carried out in other EU countries to ensure Near Field Communication(NFC) was effective. Not only can customers pay for good using their contactless card but the technology extends to mobile phone tabs which also allow you to wave your phone across the terminal or keyring fobs which were provided by card issuers Visa and Mastercard.
After the major UK banks supplied their customers with the new contactless cards the race was on for credit card machine manufacters Ingenico and Verifone to update their terminals to operate the contactless system. At present only a handful of merchant services suppliers such as Seymour Direct are able to provide businesses with the upgraded technology at reasonable rates.