New Wave of Contactless Payments Speeds Up Profits

De MobileCells

Contactless payments generate a entire new field of payment choices for merchants. Contactless payments are fast, straightforward and pave the way for greater profits. A smart computer chip, with information and an antenna is embedded into a credit card, debit card or fob. When the acr122u tool card or fob is tapped on a radio frequency reader, the reader sends out a radio signal that activates the card, the information on the card is read and the payment is processed without having a signature for purchases much less than $25.00 with no chargebacks to the merchant.

Merchants dont need to have 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 program, transaction management systems and readers.

We have been working closely with processors, card issuers and terminal providers to develop an open program using the IS0 14443 standard. It makes use of secure encryption technology. The contactless card doesnt leave the buyers hands therefore it is more secure and theres no skimming of data, assured Kahn who sees contactless as a great opportunity for merchants to increase income. He envisions contactless payments as a replacement for money since they are more rapidly, far more handy and price less due to less shrinkage and much less labor involved.

There are two kinds of contactless readers accessible: Peripheral Contactless Readers (PCRs) that plug in to existing POS terminals, and Integrated Contactless Readers (ICRs) that replace conventional readers and provide both magnetic-stripe- and contactless-reading capabilities. Merchants can obtain either type of reader. The PCRs generally expense about $150. Some merchant service providers such as Acies, nonetheless, are offering deals competitive plans and free readers with terminals.

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

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

Scientific studies show the speed and added value of contactless payments because usually when an individual does not pay with money the amount of the transaction increases. Visa trials showed their contactless card transactions had been 25% more quickly than cash. MasterCard PayPass trials showed an boost in transaction amounts and 12 to 18 second reductions in payment occasions for drive-thru transactions. Aite Group reports that CVS, the drug retailer 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 money transaction.

Merchants who have a modest time frame to service clients, such as rapidly food restaurants, coffee houses, film theatres, drug stores, convenience retailers and drive-thrus can benefit drastically from discount mifare card sdk contactless payment methods. McDonalds, AMC Theatres, CVS, Meijer, Duane Reade, Regal Entertainment, Ritz Camera, Arbys, Cold Stone Creamery, Eckerd, Carls Jr., Great Occasions Burger, KFC, RaceTrac, Subway, Sonic (Drive-In Restaurants) and Walgreens have installed contactless readers. Convenience stores are gearing up to accept contactless payments. Contactless readers are becoming installed in 5,300 7-Eleven shops and 350 Sheetz retailers. WaWa markets is installing over 2000 readers in its 540 shops 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 achievement of contactless payments, said Elvira Swanson, Visa spokeswoman. Visa, with four million Visa Contactless cards in circulation, delivers collateral supplies, on the web demos, and merchant support teams to assist educate merchants.

This is the actual thing. Contactless is beyond the chicken and egg idea stage now, when you look at how numerous financial institutions have created the choice to offer contactless and the number of national merchants accepting it, stated T.J. Sharkey, Vice President, Business Development, U.S. Acceptance, MasterCard International. MasterCard is supporting contactless in several ways. Merchants who accept contactless payments are listed at the MasterCard Web internet site exactly 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 consist of Citibank, MBNA, HSBC (debit cards), JP Morgan Chase, Crucial Bank (debit cards) and Citizen.

There have been many pilot contactless programs in sports stadiums including San Francisco, Seattle, Baltimore, and Philadelphia. Recently, one more form element 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 just holding their Nokia mifare card stock mobile phones equipped with Philips' NFC semiconductor chips and ViVOtech software package close to a single of the 150 terminals. NFC is compatible with ISO 1443 readers has other attributes such as the capability to transmit a coupon to a reader.

Contactless payments are the wave of the future and will change the way the world pays for purchases, Khan stated enthusiastically.

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