Questions About Contactless Transactions? We Have the Answers

  • November 20, 2017
  • Blog

contactless readerContactless readers are an innovative technology that is changing the world of sharing information. Whether it’s in retail settings, or the manufacturing industry, contactless transactions of money and information are making processes faster and easier. However, some people are still unsure of how this all works. So with that in mind, this article it going to take a look at some of the most frequently asked questions about contactless transactions.

What are contactless payments?
Contactless payments are completed by holding the payment card or device in close proximity to the contactless reader. The transaction is completed without requiring any physical contact between the payment device and the physical point-of-sale terminal. This is done by transferring the payment account information wirelessly through radio frequency.

What are the advantages of using contactless payments?
Over the past few years, contactless payments have shown numerous benefits for all users, whether consumer or corporate. Some of the biggest advantages of using a contactless reader include:

  • Speed and convenience
  • Increased security measures developed for contactless payments
  • Increased transaction volumes for financial institutions
  • Acceptance and implementation across a wide range of retail segments

Does a contactless reader work the same way as RFID technology?
There is a wide range of RF technologies that can be used for a variety of applications. RFID reader technologies can be used in manufacturing, shipping, and other object-related tracking. This RFID scanner technology is designed to work over long-range distances. On the other hand, a contactless reader or payment card is designed to operate over short distances and have immense security capabilities in order to protect information used for financial services and other applications.

Can a person unknowingly make a purchase if the get close enough to a contactless reader?
No, the retailer must first enter the amount for a customer to approve on the reader. Just like with a standard debit or credit card reader, the customer has to approve the transaction. Additionally, the card has to be held extremely close to the reader in order for the reader to even register the card.

If someone steals my card, can they just keep using it?
If your card is stolen, security measures will be put into place. If someone makes multiple contactless payments in a row, they’ll be asked to enter the PIN number associated with the card. This security measure makes contactless transactions as safe as possible. However, it’s still crucial to contact your cardholder and bank if your card is lost or stolen.

Contactless card reading seems to be the direction that retail, and other industries, are headed in. Contactless transactions will not only make the process more efficient, but contactless cards will be able to hold more information, while remaining more secure. The magnetic strip on an ID or credit card can magnetically store 60 characters, including personal details like a name or account number. With contactless cards and readers, people will be able to store more information and innovations with this technology will make the process of scanning information even more efficient.