New Wave of Contactless Payments Speeds Up Profits

Contactless payments create a entire new field of payment choices for merchants. Contactless payments are fast, basic and pave the way for higher profits. A intelligent computer chip, with information and an antenna is embedded into a credit card, debit card or fob. When the card or fob is tapped on a radio frequency reader, the reader sends out a radio signal that activates the card, the details on the card is read and the payment is processed without a signature for purchases much less than $25.00 with no chargebacks to the merchant.

Merchants dont need to have to be acr122u scripting tool concerned about compatibility with their present systems or security mentioned, Mohamed Khan, President and Founder of ViVOtech, Santa Clara, Calif.-based developer of contactless computer software, transaction management systems and readers.

We have been working closely with processors, card issuers and terminal providers to produce an open program employing the IS0 14443 standard. It makes use of mifare 1k label secure encryption technology. The contactless card doesnt leave the clients hands consequently it is much more secure and theres no skimming of data, assured Kahn who sees contactless as a wonderful opportunity for merchants to enhance revenue. He envisions contactless payments as a replacement for money simply because they are faster, much more convenient and expense less due to much less shrinkage and much less labor involved.

There are two varieties of contactless readers readily available: Peripheral Contactless Readers (PCRs) that plug in to current POS terminals, and Integrated Contactless Readers (ICRs) that replace traditional readers and supply both magnetic-stripe- and contactless-reading capabilities. Merchants can acquire either kind of reader. The PCRs normally cost around $150. Some merchant service providers such as Acies, even so, are offering offers competitive plans and free readers with terminals.

David Robertson, Publisher of The Nilson Report (Carpinteria, Calif.) estimates that there are 12 million contactless cards at the moment in circulation in the U.S. He predicts that first contactless successes will be at the brand name retailers and then merchants in the locations exactly where cards are deployed will comply with suit when their buyers ask to use their contactless cards.

Consumers are asking for contactless in the New York Metro region where several cards have been dropped, says Oleg Frier CEO and President Acies, Inc, a New York City-headquartered national payment processing and financial services provider. Other locations exactly where there are substantial contactless readers and cards incorporate Atlanta, Philadelphia, Denver, Dallas and Orlando, says Khan.

Scientific studies show the speed and added worth of contactless payments because typically when an individual does not spend with cash the amount of the transaction increases. Visa trials showed their contactless card transactions were 25% quicker than cash. MasterCard PayPass trials showed an increase in transaction amounts and 12 to 18 second reductions in payment occasions for drive-thru transactions. Aite Group reports that CVS, the drug shop chain, has identified the typical contactless transaction takes 12.five seconds, versus 26.7 seconds for magnetic-stripe card payments and 33.7 seconds for a cash transaction.

Merchants who have a little time frame to service buyers, such as quickly food restaurants, coffee houses, film theatres, drug retailers, convenience stores and drive-thrus can benefit tremendously from contactless payment strategies. McDonalds, AMC Theatres, CVS, Meijer, Duane Reade, Regal Entertainment, Ritz Camera, Arbys, Cold Stone Creamery, Eckerd, Carls Jr., Good mifare cards Times Burger, KFC, RaceTrac, Subway, Sonic (Drive-In Restaurants) and Walgreens have installed contactless readers. Convenience retailers are gearing up to accept contactless payments. Contactless readers are being installed in five,300 7-Eleven stores and 350 Sheetz shops. WaWa markets is installing over 2000 readers in its 540 retailers co-branded with a credit card and loyalty system.

Card associations are also gung-ho for contactless payments.

It takes a village to launch a new technology, at Visa, we have an absolute commitment to assure good results of contactless payments, said Elvira Swanson, Visa spokeswoman. Visa, with 4 million Visa Contactless cards in circulation, gives collateral supplies, on-line demos, and merchant assistance teams to support educate merchants.

This is the genuine factor. Contactless is beyond the chicken and egg idea stage now, when you look at how numerous monetary institutions have created the choice to supply contactless and the number of national merchants accepting it, said T.J. Sharkey, Vice President, Business Development, U.S. Acceptance, MasterCard International. MasterCard is supporting contactless in numerous techniques. Merchants who accept contactless payments are listed at the MasterCard Internet internet site where there are demonstrations on how their Tap N Go, PayPass cards work. Television commercials illustrating their PayPass cards are airing nationally.

Banks issuing contactless cards contain Citibank, MBNA, HSBC (debit cards), JP Morgan Chase, Important Bank (debit cards) and Citizen.

There have been a number of pilot contactless programs in sports stadiums such as San Francisco, Seattle, Baltimore, and Philadelphia. Recently, one more form factor of contactless has been added into the mix, with the trial of NFC (Close to Field Communications) contactless payments from cell phones at the Philips Arena in Atlanta. Season ticket holders with Chase-issued Visa credit accounts and Cingular Wireless accounts can make contactless payments by basically holding their Nokia mobile phones equipped with Philips' NFC semiconductor chips and ViVOtech software package close to one particular of the 150 terminals. NFC is compatible with ISO 1443 readers has other attributes such as the capacity to transmit a coupon to a reader.

Contactless payments are the wave of the future and will alter the way the globe pays for purchases, Khan said enthusiastically.

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