One year ago, Mastercard and Visa changed the maximum amount eligible for tap payments from $100 to $250. It was one of the first measures taken in the wake of the COVID-19 pandemic. The thought of both credit card providers was that the newly raised limit would give shoppers more opportunities to avoid touching POS machines. That way, they could significantly reduce the spread of coronavirus.
As Clare O’Hara of The Globe and Mail reported, the Mastercard and Visa initiative was made “as government officials recommend physical distancing during the pandemic and a growing number of merchants and consumers are switching to safer ways to pay for purchases that do not require touching PIN pads.” In addition to the idea that they keep people safer, tap payments provide numerous other advantages.
Transactions are a lot quicker.
Contactless payments can be completed with a second – literally. A simple tap of a credit card is all it takes to process a sale that is $250 or less. As a result, checkout times are a lot quicker than normal. Taking away the need to punch in a PIN code provides a great convenience to customers. This is especially true when they are in a rush. Even when they’re not rushing, no one enjoys long waits in line. Tap payments work wonders in the world of customer satisfaction.
“Contactless payments are ideal for merchants with high volumes of customers where speed of service is essential – in particular, quick-service restaurants, coffee shops, movie theatres, convenience stores, gas stations, grocery stores, pharmacies, newsstands and more,” declares Visa.
Consumers feel more comfortable spending their money.
Because tap payments offer secure and effortless transactions, merchants have noticed a jump in such sales. This is certainly important during these pandemic-burdened times. COVID-19 has been hard enough on business owners as it is. The last thing needed is an added inconvenience for shoppers who do enter their stores. Tap payments have helped for shoppers to enjoy easy shopping experiences.
As Helen Racanelli reports on MoneySense.ca, amid the COVID-19 pandemic, contactless spending accounted for 52.5 percent of all credit and debit transactions in Canada in April, May and June of 2020.
Cardholders are protected against fraud.
As per usual, cardholders who lose their cards or have them stolen can still freeze their accounts. Consumers need not be worried that tap payments made with lost or stolen cards can mean having to pay for fraudulent transactions. As well, there are built-in protections that ensure that the same transaction doesn’t accidentally get made twice.
“Contactless payments leverage the security benefits of chip card technology, providing you and your customers with a secure contactless payment solution,” Visa confirms, “Visa contactless payments uses dynamic data authentication (DDA) to ensure that only a valid contactless payment-enabled card or mobile device can be accepted at certified payment terminals.”
Do you allow for tap payments in your store?
At Unity Payments, we believe that the easiest and most convenient way for merchants to accept credit and debit cards is with the Poynt Smart Terminal. To learn more, please don’t hesitate to call us at 1-800-661-3761. You may also email us at email@example.com.