Top 3 common myths about going contactless
Sunday August 01, 2021
Figures show that in 2019 cash transaction by retainers fell by around 15%. Indeed, over half of all payments made in the UK last year were by card. Then of course the pandemic hit, which only acted to speed up the use of online and contactless payments.
Top 3 common myths about going contactless
Figures show that in 2019 cash transaction by retainers fell by around 15%. Indeed, over half of all payments made in the UK last year were by card. Then of course the pandemic hit, which only acted to speed up the use of online and contactless payments.
It’s clear that customers are willing to use contactless options, but we’ve heard that many retailers are still reluctant to make the change. This is largely down to various myths that are circulating, particularly between smaller or older businesses, that contactless can’t be trusted.
We think this is a massive shame and a missed opportunity. Not only are contactless payments faster and more hygienic, they’re more secure too.
So with this in mind we’ve put together a short article in order to put three of the most common myths to rest.
Contactless card payments aren’t very secure
When contactless card payments were first launched, many people were nervous. Will my card be easier to use if stolen? Could I accidentally pay for someone else’s shopping just by walking too close to the terminal? Business owners were also worried about fraud, and whether they’ve be covered if a fraudulent payment occurred.But the fact is that card terminals are incredibly secure. High grade encryption is used for each contactless payment made, and after the card is used more than a certain number of times they’ll with then need to enter their PIN.
People are also now increasingly using digital wallet paymentsand these have an even higher level of security. Featuring biometric authentication, customers making a purchase can only do so by using their own fingerprint. Many also come with facial recognition technology, offering multi-layered protection for both businesses and customers.
My customers are likely to spend less if I accept contactless payments
For many years the maximum amount that could be paid for using contactless was £30. When the pandemic hit, this limit was increased to £45 to speed up time spent at checkouts. Shoppers seem to have appreciated this move, with £4.1 billion spent in UK stores via contactless payments in April 2020 alone.Data shows that with the average credit and debit card payment made in the UK sitting at £36.76, more payments than ever are now contactless. In fact, it has also been shown that far from restricting the amount of purchasing customers carrying out, contactless cards actually boost the likelihood of impulse purchasing. Shoppers often make last-minute additions to their basket, because they know that payment is safe, quick and simple.
Contactless card payments are more expensive than standard Chip and PIN
There are many myths surrounding card payment fees in particular. Some merchant service providers do indeed sneak in extra charges to monthly statements, pushing up costs for businesses. This is probably where the incorrect information has come from.But the truth is that contactless payments are processed exactly like standard Chip and PINtransactions. Contactless payments don’t attract any additional fees, so retailer are in fact charged the standard debit or credit card rate.
The point is, if your business already accepts card payments using Chip and PIN, then you shouldn’t need to pay more for contactless.
Contactless payments are quicker and easier for your customers. Make sure you offer them the service they deserve.
