The need for secure payment cannot be overstated. Fewer people are carrying paper money for transactions to avoid being targets of criminals and people of malice. Instead, they rely on credit card technology that makes payments easy, secure, and convenient. The entire process has become even better after the introduction of contactless payment systems. What does this mean? How is it more beneficial than other methods of payment? This article gives you all the details.
Defining Contactless RFID Payment Solutions
Contactless payment solutions allow credit card users to put their cards close to the card reader to make payments. They utilize Europay Mastercard Visa (EMV) protocol, an international standard representing a set of security rules exchanged amongst transaction actors. Critical security properties are made certain including integrity, authentication, and authorization. All cards contain an antenna to enable for communication with the reader without physical contact.
The RFID contactless payments are perfectly applicable in cashless vending, parking, and toll payment among other things. It is also worth noting that financial institutions come up with consumer withdrawal limit that can be made using the cards. This is to compensate for the fact that signature and PIN code are not utilized in transactions.
What Are The Benefits Of RFID Payment Technology?
Several benefits of RFID contactless solutions exist. They include:
- Speedy transactions. You don’t have to waste time providing signatures and PIN codes during transactions. All you need to do is to place the card next to the reader and the transaction will be completed.
- Security is heightened. Fraudsters are known to run a mock of credit card readers by linking it with the original identity credentials. This has resulted in a lot of pain and suffering as the financial institutions try to find better ways of securing the transactions. With contactless payment systems, tokenization is used; it replaces the card’s actual number with different numbers or unique characters for every transaction. The token is only valid for a single transaction.
Even further, applications using contactless payment solutions support vital security features to ascertain that the integrity and privacy of information is attained. One of them is mutual authentication, where the smart card device verified whether the reader is authentic before completing a transaction. In any case, data stored on the cards can be encrypted to prevent fraud. It is also difficult to duplicate the contactless smart card technology. Unlike other types of cards, tampering attempts are easily detected and the right reaction made immediately to protect the consumers.
- Convenience in transactions. RFID Payment Technology can be connected to a Smartphone device, which will avail a range of features including virtual card provisioning, payment history, and remote deactivation. You can access these details at the comfort of your home and make the right decisions. Still, you can go for the tap-to-pay option, where you are offered the option of quickly making payments at busy venues securely.
- Durability and reliability. Cards using RFID payment technology are sealed enough to prevent damages. You can be sure that they will remain intact even after coming across water, dust, cold, and other environmental issues.
- Merchants achieve their goals. Enhanced consumer convenience in payments is associated with more sales in business. It also helps lower or eliminate the costs of handling transactions regularly. Making profits and achieving growth can be attained in this regard.
- Institutions attain efficiency. Some of the government agencies and non-governmental organizations encourage their employees to use contactless payment solutions to avoid the lengthy processes of making payments to access buildings and other services.
- The numbers of transactions are unlimited. While a financial institution dictates the consumer maximum withdrawal limit, the numbers of daily transactions are unlimited. It is the best payment option for the days that require you to move from one place to another or buy goods from different places.
Are There Any Concerns With Contactless Payment Systems?
Just like everything else in the market place, consumers may have concerns over the use of contactless payment systems. To start with, worries are heard of people who feel that acquiring the card could be disastrous if it falls into the wrong hands. The fraudster may make transactions as many times as they can because PIN codes and signatures are not required. It is also argued that transactions can take place without the user’s knowledge since they only need to stand into close proximity to the card reader.
Most of the fears of using the technology are unfounded to a great extent, since there are numerous options and security features to ascertain that the consumer’s safety. You will notice malice effortlessly because the transmission standards are highly secure. Chances of making transactions unknowingly are also few because the technology requires the user to be extremely close to the reader to authorize the transactions. More so, shielding products are available to eliminate electronic pick pocketing and other security concerns.
The Bottom Line
A cashless payment system is the way to go for consumers who are drawn to security, convenience, and speed in transactions. Nonetheless, finding technology-based companies to debunk the features and how to use the solution to your advantage is vital.
Infographic created by Clover Network, a QSR POS company