What Are Contactless Payments?

Contactless payments provide a convenient method to send money from a customer’s credit card issuer to a business. For purchasers who are used to swiping or inserting a wallet-kept card into a credit card processing machine, this method fulfills the payment transaction without making extended physical contact. Technological innovations are continuously being improved to enhance mobile payment experiences.

About Contactless Payments

Simplicity is an important benefit for busy consumers. Contactless payment technology ushers customers through the point-of-sale much faster than the traditional payment options.

When these transactions occur, merchants will notice shorter checkout time frames, as well.

Additionally, a variety of health concerns has created a heightened level of awareness toward touching public surfaces or handing a credit card to a cashier.

Contactless payments are an ideal way to minimize a shopper’s touch points.

Mastercard recently completed a global consumer survey that revealed, a whopping 46 percent of the respondents are using contactless cards more frequently.

Also, the survey showed that 52 percent of the respondents under the age of 35 preferred using contactless cards.

While the driving force for touch-free transactions is a result of the Covid-19 pandemic, the survey indicates that 74 percent of the respondents will continue to use contactless cards beyond the novel coronavirus.

Accepting Contactless Payments

As a retailer or a mobile merchant, value-added benefits are important for consumers who may need to make a pin-based transaction or a contactless credit card payment.

Without support for the most popular types of merchant services, a business could experience unfavorable reviews from a delayed checkout process.

However, when a customer can waive her smartphone within close proximity to a secured electronic payment device or tap her credit card against a device that accepts contactless payments, she can expeditiously complete the sales transaction.

It’s also a good idea to accept contactless payments for instances where a consumer has a damaged credit card that is difficult to read. When a credit card is bent, has scratches or contains other defects, the transaction could lead to chip reading errors and multiple swipe attempts. This frustrating checkout experience might be avoidable for consumers who can complete contactless payments.

Additionally, transactions that do not require contact could help reduce the spread of germs, viruses or diseases.

Are Contactless Payments Safe?


Credit card issuers provide the same payment protection for cardholders who experience fraud, theft and unauthorized charges via swiped, dipped, online, phone based or contactless payments.

According to Mastercard, it developed contactless technology in 2003 with a focus toward safe and secure payment experiences.

Through near-field communication and radio frequency identification, information may be exchanged between extremely close devices.

When a compatible smartphone or a chip-embedded credit card is held close to or tapped against a contactless payment reader, a wireless link quickly sends secured payment data to facilitate the transaction.

Interestingly, a cardholder’s name, three-digit pin and zip code are not included in the wireless link. Instead, a one-time code is used to validate each transaction.

Therefore, information that might be intercepted by a thief would be extremely hard to replicate, since the one-time code contains a dynamic number that features advanced encryption.


As consumers continue to prefer safer and faster shopping experiences, one thing is for certain, contactless transactions are here to stay.

Rather than looking for hand sanitizer at each visit to a department store, restaurant or a gas station, a consumer can enjoy a contactless checkout experience.

Merchants who are equipped for touch-free credit card processing and to accommodate consumers who are carrying less cash may realize enhanced levels of customer satisfaction.

Contact Valued Merchant Services today for more information about unmatched pricing on secured credit card processing.

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