Contactless Payment Basics

Contactless payments are a convenient payment tool that save time for both merchants and cardholders. Contactless payments are also known as near-field contact (NFC) payments because they are based on technology that works in such a way that is a card enters the terminal’s magnetic field, the card data is read without the card having to be swiped or inserted.

Contactless payment cards with EMV technology are more secure than cards with magnetic stripes. With both types of cards the data is scanned by the terminal, but with EMV cards information is exchanged between the terminal and the card.

There are some limitations on EMV cards due to payment gateway security and technological issues. The cards contain chips with several applications that can be used in a variety of transaction types. When the card is swiped, the desired application may be selected by the cardholder. In contactless transactions, the application is chosen automatically. In addition, security necessitates limited transaction amounts.

The biggest advantage of EMV cards is that they substantially simplify the process of certification. Some companies are expected to eventually transition entirely from contact payments to contactless credit card payment software, as terminals designed solely for contactless payment are less expensive than those designed to accept both types of payments.

To find out more about contactless payments, visit #UniPayGateway for comprehensive articles on this and other topics related to payment gateway services. What is more, you can visit Paylosophy Payment Advice Portal.

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Enterprise-scale, open-source, #PaymentProcessing solutions for #Merchants, #PayFacs and PSPs. For more information, visit UnitedThinkers.com

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