Are Contactless Payments Safe?

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5.11.2021 Security

Are Contactless Payments Safe?

Every business must implement safe payment solutions.

If you’re a business owner in Australia, you know that times have changed for brick-and-mortar businesses. New regulations can make it more challenging — and expensive — to stay in business. Meanwhile, the COVID-19 pandemic has put health and safety at the forefront of everyone’s mind. As people practice social distancing, and expect businesses to do the same, COVID-friendly payment methods have become more and more important.

But how safe is contactless payment? Can a touchless payment system protect you and your customers from fraud, while minimising the risks of spreading COVID-19?

The short answer is, yes. Contactless payments are safer than exchanging physical cards or cash in many ways. If you want to understand how contactless payment methods work and why they’re beneficial for business, keep reading this short guide.

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Types of Contactless Payments

There are a few different types of contactless payments. To meet all your customers’ needs effectively, you should use a payment system that works with all of them. The various contactless payment options fall under two main categories: mobile wallet and card.

In recent years, consumer technology has advanced to allow customers to make purchases with their mobile wallets. Apple Pay, Google Pay, and Samsung Pay are all well-known digital wallets powered by Near Field Communication technology.

A “mobile wallet” is an app that works on a smartphone, smartwatch, tablet, or other device. They let users store payment information directly on their devices, enabling customers to simply tap their device to your EFTPOS terminal in order to pay.

Mobile wallets are a safe option because customers can use them to pay without handing over cash — meaning less risk of your staff falling sick, or accepting a fraudulent note. But some credit and debit cards can also be used for contactless payments.

Cards that are able to used for wireless, contactless payments have scannable chips embedded in them. These chips allow cards to be scanned using the same type of receiver that mobile wallet payments are made with.

Not all credit card providers have scannable chips embedded into their cards, but it’s an increasingly attractive feature in the age of COVID-19.

How Contactless Payment Processing Works

By now, you know that contactless payments can be made with mobile devices or certain cards. But how does contactless payment processing work? What makes these kinds of transactions possible in the first place?

The answer is NFC, or Near Field Communication, technology. NFC is a set of communication protocols that allow devices to interact at very short distances. When it comes to contactless payments, NFC technology lets devices and cards transmit payment information to EFTPOS terminals.

When a customer scans their card, phone, or wearable device at check-out, their account details are transmitted securely to the store’s computer, or card reader. These details are then used to connect with their credit or debit account and process the payment.

Because contactless payments rely on Near Field Technology, the device or card has to be placed very close to the scanner. This ensures that the scanner won’t capture the wrong customer’s information by mistake — while still allowing for safe, touchless payment processing.

Benefits of Using Contactless Payments

Now that what contactless payments are and how they work is clear, let’s wrap up this brief guide by pointing out some of their benefits.

Protection against COVID-19

This may be the single biggest reason to begin using contactless payments, if you aren’t already. Touchless payments eliminate the need for stores to handle cash and physical cards. This provides a certain degree of protection against germs and viruses like COVID-19.

Your customers have come to expect the ability to pay without cash; if you’re sending them to the nearest ATM, you risk losing their business

While contactless payments alone are no replacement for other COVID-safe practices, they can help. It’s just one more important step in the fight against COVID-19.

Speed and convenience

Perhaps the most exciting feature of contactless payments is their speed. Touchless payments can be processed in less time than it takes to swipe a credit card. And, of course, it’s much faster than counting out cash or coins. Shifting away from cash payments also means less time spent counting your drawers at the end of the day, less money kept on-site, and fewer trips to the bank branch to deposit it.

For customers in a hurry and stores with long queues, contactless payments can be a lifesaver.

Data security

One shared concern between customers and business owners alike is data security. This is especially significant when it comes to protecting personal information — and for good reason. Identity theft is terrible for individuals and the businesses that serve them.

Fortunately, contactless payment systems provide excellent security. The information transmitted between devices is encrypted to deter hackers. And when customers use mobile wallets, their card information is never seen. Read more about how Zeller keeps your business (and your customers) safe on the blog

Platform flexibility

Another great thing about contactless payments systems is their flexibility. It doesn’t matter whether a customer comes in with an Android phone, an Apple Watch, or a new credit card. A modern EFTPOS terminal that accepts contactless payments will be compatible with them all. 

This means that someone going for a run with their smartwatch can stop in for coffee, even if they don’t have their wallet on them. This can mean more business for you and increased convenience for customers.

As newer payment methods (such as Alipay and Zip Pay) grow in popularity, it’s important that you have the tools to process transactions. Look for an EFTPOS terminal provider like Zeller that keeps track of the latest trends, and builds modern solutions into their tools — so that you can accept payment from every customer, quickly and conveniently.

Start Accepting Contactless Payments With Zeller

So, is contactless payment safe? As you can see from reading this quick guide, contactless payment systems are a safe and efficient way to process transactions. Besides being a sanitary, COVID-safe way to transact, the technology that powers contactless transactions lets any customer make easy payments with whatever device they have on them.

Businesses in Australia need to implement safe payment solutions to protect their customers and employees. If it’s time for your business to begin accepting contactless payments, then Zeller has you covered with a COVID-safe, touchless payment system.

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