Contactless Payments: What Every Merchant Needs to Know

Contactless payments have exploded in popularity, with Visa reporting that more than 60% of face-to-face transactions outside the United States are now contactless. In the U.S., adoption is accelerating rapidly, driven by consumer demand for speed, convenience, and hygiene.

How Contactless Payments Work

Contactless payments use Near Field Communication (NFC) technology. When a customer holds their contactless card, phone, or wearable device within a few centimeters of the payment terminal, the NFC chip transmits encrypted payment data. The transaction is authenticated using the same dynamic cryptogram technology as EMV chip cards, making it highly secure.

Types of Contactless Payments

• Contactless cards: Cards with the contactless symbol (four curved lines) can be tapped against the terminal
• Mobile wallets: Apple Pay, Google Pay, and Samsung Pay store card credentials on a smartphone
• Wearable devices: Smartwatches and fitness bands with payment capabilities

Benefits for Merchants

• Faster transactions: Contactless payments complete in under 2 seconds vs. 5-10 seconds for chip insertion
• Reduced friction: Customers do not need to fumble with cards or enter PINs for small transactions
• Improved hygiene: No physical contact with the terminal
• Same interchange rates: Contactless transactions qualify for the same interchange rates as chip transactions

Setting Up for Contactless

Most modern payment terminals support NFC contactless payments out of the box. If your terminal was manufactured after 2017, it likely already has NFC capability — you may just need to enable it in your terminal settings or through your processor.

Mogil Partners helps businesses modernize their payment acceptance with the latest contactless-enabled terminals and POS systems. Contact us to learn more.