Contactless Payment Essentials

Contactless payments are those that do not require a card to be inserted or swiped through a terminal. Rather, the card is read simply by placing it within the terminal’s magnetic field. Sometimes referred to as near-field contact, or NFC, payments because they work on technology by the same name, contactless payments are a convenient, time-saving option for cardholders and merchants alike.

Credit cards containing computer chips, known as EMV cards, are more secure than those with a magnetic stripe. While the terminal with the credit card payment software scans the cards, transactions with EMV cards involve data exchange between the card and terminal.

There are certain issues related to payment gateway security and technology that somewhat limit how EMV contactless credit cards are used. The chip contained within the EMV card holds a number of applications, so it can be used in a variety of transactions. When the card is swiped, the cardholder is able to choose the appropriate application, but when the card is used in a contactless transaction, the application is automatically selected. For security purposes, the transaction amount is limited on these cards.

Despite the limitations, there is one huge advantage to EMV cards and that is how significantly they simplify the certification process. Because of this advantage, and because of the difference in price between terminals designed for both contact and contactless transactions and those designed solely for contactless transactions, it is expected that some companies will transition to contactless payments only.

Find out more about contactless transactions and payment gateway services at #UniPayGateway. Also, do not forget to visit Paylosophy Payment Advice Portal.