What are Contactless Payments and How Does it Work?

During these unpredictable times when purchasing is just as prevalent but people don’t want to risk their health in the process, point of sale systems with contactless payment have taken the world by force. Now, they are as integrated into our system as swiping mechanisms and chip readers. So, that brings us to these commonly asked questions regarding the newest point of sale solutions: what are contactless payments, how do they work, and what benefits do they offer? Keep reading below to learn the facts from our expert Retail Tech team and find out more.

What are Contactless Payments?

Put simply, contactless payments are a contact-free, cash-free transaction method that takes place at a point of sale terminal. Using either a tap-and-go model or a digital wallet like Apple Pay or Google Wallet replaces the need to swipe or insert your credit card. The contact-free payment method allowed retail businesses to thrive during the pandemic and stuck around thanks to the ease it brought. This more sanitary POS system method brought peace of mind as well as an extra level of security.

How Does it Work?

Contactless payments, or proximity payments, can be completed using a card reader with a smartphone, debit card, credit card, or other cards with touch-free payment methods enabled. By using radio-frequency identification (RFID) or field identification from a few inches away, the system verifies customer proximity and runs the card like any other transaction with a POS system. This touchless system allows health-conscious customers to finish their transactions safely, quickly, and with ease

Are Contactless Payments Different from Self-Checkout? 

Yes. Although commonly thought to be the same, contactless payments are different from self-checkout. The self-checkout method is virtually the same as a cashier checkout, but it’s a more simplified version. However, the payment methods are still the same in both situations.

Benefits of Contactless Payments

Opting for an updated point of sale system with proximity payments ensures that your business experiences:

• Quicker transactions
• Shorter checkout lines
• Ease of cash-free payments
• Better hygiene and safety
• Added security
• Less damage and wear to POS system
• More versatility for customers
• Little to no physical interaction

There are so many positive benefits that your retail business can experience by updating your POS equipment to the newest contactless technology. If you are considering updating and need more information, check out our related material linked below.

Related Read: What Should You Consider When Choosing a POS System?

Are There Any Negatives to Contactless Payments?

Some negatives to contactless payments are more for the customer than the retail business. For some customers, it can narrow down the locations where they can use their cards because some businesses are still using outdated systems. On top of that, since there is no signature or pin, there isn’t much preventing other people from using the credit card if it’s stolen. However, if customers stay vigilant by checking their bank account and note if they lose their credit card, these aren’t huge problems.

Easily Update Point of Sale Systems with Contactless Capabilities

With contactless payments changing the world we live in for good, businesses need to keep up with the trends to avoid losing loyal customers or missing out on new ones. Implementing updated point of sale systems allow customers who prefer the touch-free methods to have a sense of security and peace of mind when it comes to their health. If you need help implementing a new system in your retail space, speak with our experts on the RTI team today to get started.

Retail Tech carries a wide variety of new and refurbished POS equipment. We offer installation and staging, POS printer repairs, and more. If you need help choosing a POS system, contact our POS systems specialists for help finding the perfect point of sale solution for your small business.