With the spread of the coronavirus, consumers have become increasingly concerned about hygiene when it comes to purchasing products and services. Even the safety of surfaces such as merchants’ point of sale credit card readers are now being called into question. This has led to the rapid adoption of contactless or touchless terminals. Now that contactless transactions seem to be here to stay, let’s take a few minutes to learn a bit more about them.

Contactless payments are very secure.

In the days before near-field communication (NFC) technology enabled buyers to place their chip-enabled cards, smartphones, or wearables near a merchant’s reader, paying with plastic actually wasn’t all that safe. Wily cashiers could easily copy numbers and security codes in a flash, later using the information to make unauthorized purchases.

With contactless payments however, a customer’s card or device never leaves their possession. Furthermore, the data that is transmitted is immediately encrypted and turned into a single-use series of random numbers known as tokens that are useless to hackers.

Touchless transactions are faster.

Generally, a credit card transaction in which a customer must enter a PIN or sign a receipt takes three to four seconds. By way of contrast, there is often only half a second elapsing between a fast tap near the merchant’s contactless reader and the completion of the payment. This is the case even though a great deal of high-tech authentication and certified, point-to-point encryption occurs in that short amount of time. 

Consumers often spend more money with contactless payments.

No one is completely sure why, but something about the nature of this fast and easy payment method inspires buyers to open their wallets even wider. Maybe it’s the speed and efficiency touchless payments provide. Perhaps it’s the fact that there is often no card or physical money being exchanged, leading to an illusion of unreality. Whatever the reason, business owners who incorporate touchless terminals into their digital ecosystems almost without fail will see their sales increase. 

Touchless payment technology is easy to set up and use.

One of the best things about accepting touchless payments is that doing sp doesn’t involve a lot of complex technology, or a steep learning curve. In fact, all you need to do is to make sure that your payment processing company accepts contactless payments. If they do, they will provide you with the NFC terminals you need. It’s even possible that your existing terminal is already equipped with NFC technology. 

Processing fees are low.

You might be surprised to learn that you will pay less per contactless transaction than you would for those you manually key in. You also shouldn’t be charged any more for these touchless transactions than you would for an EMV chip card (dipped) or traditional magstripe (swiped) transaction.

Customers can still add tips.

If you own a food service business, salon, or day spa, you may be concerned that implementing touchless payments will provide a disincentive for customers to add the tips that your staff members rely on so heavily. Don’t worry: Your contactless terminal’s display can actually be set up to prompt guests to add a gratuity of any amount.

Contactless transactions give merchants and consumers alike a safe, secure, fast, and efficient way to transfer funds. Although the pandemic is sure to subside at some point, this hygienic, affordable way to pay looks like it’s here to stay. So, why not incorporate it into your checkout system.

Contact NAB today and see how easy it is to get the merchant services you deserve.


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