New Wave of Contactless Payments Speeds Up Earnings

Contactless payments generate a complete new field of payment possibilities for merchants. Contactless payments are fast, simple and pave the way for greater profits. A intelligent laptop or 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 info on the card is read and the payment is processed with no a signature for purchases less than $25.00 with no chargebacks to the merchant. Merchants dont need to worry about compatibility with their present systems or security mentioned, Mohamed Khan, President and Founder of ViVOtech, Santa Clara, Calif.-based developer of contactless software, transaction management systems and readers. We have been working closely with processors, card issuers and terminal providers to generate an open program utilizing the IS0 14443 common. It makes use of secure encryption technologies. The contactless card doesnt leave the customers hands consequently it is more secure and theres no skimming of data, assured Kahn who sees contactless as a excellent chance for merchants to improve income. He envisions contactless payments as a replacement for cash simply because they are quicker, a lot more convenient and expense much less due to much less shrinkage and much less labor involved. There are two sorts of contactless readers readily available: Peripheral Contactless Readers (PCRs) that plug in to existing POS terminals, and Integrated Contactless Readers (ICRs) that replace classic readers and provide both magnetic-stripe- and contactless-reading capabilities. Merchants can acquire either sort of reader. The PCRs typically price about $150. Some merchant service providers such as Acies, nonetheless, are providing offers competitive plans and totally 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 1st contactless successes will be at the brand name retailers and then merchants in the areas exactly where cards are deployed will comply with suit when their customers ask to use their contactless cards. Buyers are asking for contactless in the New York Metro area mifare sdk kit where a lot of 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 places 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 due to the fact generally when somebody does not pay with cash the amount of the transaction increases. Visa trials showed their contactless card transactions were 25% faster than money. MasterCard PayPass trials showed an increase in transaction amounts and 12 to 18 second reductions in payment times for drive-thru transactions. Aite Group reports that CVS, the drug store chain, has discovered the average contactless transaction takes 12.5 seconds, versus 26.7 seconds for magnetic-stripe card payments and 33.7 seconds for a cash transaction. Merchants who have a tiny time frame to service customers, such as rapidly food restaurants, coffee homes, film theatres, drug stores, convenience stores and drive-thrus can benefit drastically from contactless payment methods. McDonalds, AMC Theatres, CVS, Meijer, Duane Reade, Regal Entertainment, Ritz Camera, Arbys, Cold Stone Creamery, Eckerd, Carls Jr., Great Instances Burger, KFC, RaceTrac, Subway, Sonic (Drive-In Restaurants) and Walgreens have installed contactless readers. Convenience shops are gearing up to accept contactless payments. Contactless readers are being installed in five,300 7-Eleven stores and 350 Sheetz retailers. WaWa markets is installing more than 2000 readers in its 540 shops co-branded with a credit card and loyalty program. 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 achievement of contactless payments, mentioned Elvira acr122u tool Swanson, Visa spokeswoman. Visa, with four million Visa Contactless cards in circulation, offers collateral supplies, on the web demos, and merchant help teams to help educate merchants. This is the true factor. Contactless is beyond the chicken and egg idea stage now, when you appear at how many economic institutions have made the choice to provide contactless and the number of national merchants accepting it, mentioned T.J. Sharkey, Vice President, Company Development, U.S. Acceptance, MasterCard International. MasterCard is supporting contactless in a lot of methods. Merchants who accept contactless payments are listed at the MasterCard Web site where mifare 1k label 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 incorporate Citibank, MBNA, HSBC (debit cards), JP Morgan Chase, Important Bank (debit cards) and Citizen. There have been many pilot contactless programs in sports stadiums including San Francisco, Seattle, Baltimore, and Philadelphia. Lately, yet another 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 simply holding their Nokia mobile phones equipped with Philips' NFC semiconductor chips and ViVOtech software program close to one particular of the 150 terminals. NFC is compatible with ISO 1443 readers has other functions such as the potential to transmit a coupon to a reader. Contactless payments are the wave of the future and will modify the way the planet pays for purchases, Khan mentioned enthusiastically. ###