When you are out and about, there are many ways to pay for the things you need. You can use cash, a credit or debit card, or even your smartphone. But what if you could just tap your phone on a terminal and pay for your purchase without having to pull out your wallet? That's where contactless payments come in.
Contactless payments, also known as NFC (near-field communication) payments, are a quick and easy way to pay for purchases with your smartphone. All you need is an NFC-enabled device, such as certain Android smartphones, and a compatible payment terminal. When you tap your phone on the terminal, it will communicate with the payment system and process your payment.
There are many benefits to using tap and pay contactless payments. They're fast, convenient, and secure. And, you don't have to worry about losing your cash or cards if your phone is lost or stolen.
If you're interested in using contactless payments, here's everything you need to know.
How Do Contactless Payments Work?
As we mentioned, contactless payments are made using NFC technology. NFC is a short-range wireless communication standard that allows two devices, such as your smartphone and a payment terminal, to exchange data.
When you tap your phone on a contactless payment terminal, the NFC chip in your phone will communicate with the terminal. The terminal will then send a signal to the payment processor, which will authorize the payment and deduct the amount from your account.
The whole process is very fast and takes just a few seconds. And, because your phone never leaves your hand, it's also very secure.
How to Use Contactless Payments
Using contactless payments is easy. All you need is an NFC-enabled device and a compatible payment terminal.
To pay with your phone, simply hold it close to the terminal and wait for the payment to be processed. You may need to enter your PIN on the terminal, depending on the amount of the purchase.
In most cases, you can use contactless payments for purchases up to $100. However, some retailers may have a lower limit. And, you may need to enter your PIN for larger purchases.
Are Contactless Payments Safe?
Contactless payments are very safe and secure. The NFC technology used for contactless payments is very similar to the technology used in credit cards with EMV chips. EMV chips are extremely difficult to clone, so they provide a high level of security.
Additionally, when you use contactless payments, your phone never leaves your hand. This reduces the risk of fraud and theft.
Another safety feature of contactless payments is that they use tokenization. Tokenization is a process of replacing your sensitive credit card information with a unique code, or token. This token is used to process the payment and it cannot be used to make other purchases.
If your phone is lost or stolen, you can cancel the token so that no one can use it to make unauthorized purchases.
What Are the Benefits of Contactless Payments?
There are many benefits to using contactless payments, including:
Convenience: Contactless payments are very convenient. You can pay for your purchase without having to pull out your wallet or fumble around with cash.
Speed: Contactless payments are also very fast. The whole process, from tapping your phone to the payment being processed, takes just a few seconds.
Security: Contactless payments are very secure. The NFC technology used for contactless payments is very difficult to clone. Additionally, your credit card information is never stored on your phone or the payment terminal. And, if your phone is lost or stolen, you can cancel the payment so that no one can use it to make unauthorized purchases.
