Why Should You Use a Contactless Credit Card Reader?
Did you know that as of December 2023, only 9% of respondents to a financial survey use cash or checks for their purchases? According to Forbes Advisor, 47% of consumers use a debit card and 33% use a credit card.
So, it only seems logical for your business to accept cards, right? However, there is an additional factor you have to consider – contactless credit cards.
The innovation is certainly not new to the international industry. Much of Europe and Australia have already been making the most of contactless payments for many years now.
Yet, it seems like the United States has been sluggish to what seems will be the future of payment. Stay tuned as we explain why you should use a contactless credit card reader.
What Is a Contactless Credit Card Reader?
A contactless credit card reader uses Near-Field Communication (NFC) technology and Radio Frequency Identification (RFID). This means that people do not need to swipe or tap their cards when purchasing.
Contactless cards can be used like a basic chip charge card. They are also suitable for tap-to-pay, similar to Apple Pay and Google Pay purchases.
This method of payment quickly grew in popularity during the COVID-19 Pandemic. Even though the Pandemic is over, contactless payment still remains a more hygienic choice.
Rest assured that this data can only be exchanged within a range of around 4 cm. This prevents any accidental card reading and theft.
Advantages of a Contactless Credit Card Reader
- Easy and Fast Shopping
- Secure Payments
- Improved Customer Experience
- Business Efficiency
1. Easy and Fast Shopping
The speed and efficiency of contactless transactions are unmatched. Using contactless cards allows both consumers and merchants to save time.
What is more, sellers can serve more clients in a day. A purchase that might take an average of 30 seconds, only takes approximately 15 seconds when you go contactless.
Simply put, this is the easiest way to buy something. No need to enter a PIN. You don’t have to hand over cash and wait for change. All you need to make payments is your NFC-enabled smartphone.
This is tap-and-go process is proven to reduce queue times. Also, it has a very user-friendly interface.
2. Secure Payments
You may have heard that NFC technology makes it easier for thieves to take your card information with a reader. That is false. The truth is that NFC and contactless payments are just as safe as chip cards.
Each transaction generates a single code, instead of the settlement details being sent each time you pay.
Both encryption and tokenization are used to protect your data from being stolen, or compromised. The first turns data into a secret code that can only be unlocked with a unique digital key.
The latter replaces valuable data, such as your bank account number, with a non-sensitive substitute, known as a token.
Last but not least, linking your credit card to your smartphone makes it even harder for someone to steal your payment information. Here’s why.
First, the smartphone must be unlocked. Then, the right mobile payment app must be open. Two-factor authentication will prevent unauthorized transactions. Lastly, the smartphone needs to be close to a payment device.
3. Improved Customer Experience
Contactless payments remove the need to carry or even use cash, creating a smoother customer experience. Also, studies have shown that customers spend around 10% more while using contactless payment methods.
Furthermore, smartphones can usually be synced up to store loyalty programs and special prizes. This way, clients automatically get discounts and loyalty points at the time of payment. On top of that, some banks offer cashback and promotional offers when their clients pay with their smartphones.
It’s also worth mentioning that offering NFC and contactless payments makes your brand seem more modern. This gives extra points towards your brand perception.
4. Business Efficiency
Switching to contactless payments means you will need a smaller workforce. You will reduce the time you spend on operating card machines or counting cash. Respectively, this allows you to spend time on something more productive.
The best part is that upgrading your point-of-sale terminal to accept contactless payments will not cost you extra. You will continue to pay the same as you would for a transaction with a regular credit and/or debit card.
On top of that, the transaction fees are lower for eWallet payments. With traditional payment methods, you have to pay processing fees. These can quickly add up. For instance, banks often charge between $15 and $50 for wire transfers.
In the long run, businesses can not only save a lot of money by converting to contact-free transactions but, their business operations will be better optimized as well.
Mobile Credit Card Processing With Electronic Transfer
Are you ready to accept contactless payments and use the latest trends in digital payment technologies?
In America, more and more businesses are using both mobile wallets and contactless cards. Therefore, more providers are presenting contactless-enabled cards. After all, why not? This payment method is faster, more secure, and convenient for everyone.
Embrace the future of payments with Electronic Transfer’s mobile credit card processing solution. With us, you will receive transparent pricing, real-time notifications, digital receipts, and much more.
Don’t hesitate to take a look at our diverse services, and call us (800-757-5453) to get started today.