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Customers dont like carrying money but are wary of handing over a credit card because of the risk of credit card fraud. But whats the alternative?

Contactless payments.

The next generation of electronic payment, contactless payments dont call for the client to hand over their card. The whole transaction is completed electronically, and their card by no means leaves their hand. Its quicker, easier and significantly a lot more secure.

But what a... mifare card reader

Contactless Payments Merchant Accounts

Consumers dont like carrying cash but are wary of handing more than a credit card simply because of the threat of credit card fraud. But whats the option?

Contactless payments.

The subsequent generation of electronic payment, contactless payments dont need the buyer to hand over their card. The whole transaction is completed electronically, and their card in no way leaves their hand. Its faster, less difficult and much far more safe.

But what about the merchant? Need to money-heavy merchants rush into setting up a contactless payments merchant account? The answer is a resounding yes! Contactless payments merchant accounts provide even higher advantages to merchants than it does to buyers. Study on to find out how.

What is Contactless Payment?

Contactless payments merchant accounts are the third generation of electronic payments. (The 1st generation was the old plastic credit card, and the second was the magnetic stripe card.) Merchants with contactless payments merchant accounts allow buyers to use their credit cards for purchases without having ever handing their card over. Contactless payments merchant account transactions use 1 of the following techniques:

Contactless readers

Retailer cards/fobs

NFC (close to field communication) enabled cell phone payment application or

Back finish processing/more than the air payment software program.

Customers enjoy it!

Analysis shows that 86% of customers want to carry much less money, and most carry less than $20. (Survey was carried out in 2005 by lpsos and commissioned by MasterCard). Theyre developing much more comfy employing credit, but theyre nevertheless really worried about security concerns when handing over their card. In reality, 91% of most likely users would really feel far more secure if they were allowed to hold their payment card through their whole payment method.

And then theres ease of use, speed and comfort. Nationwide, nearly 75% of respondents refuse to wait in line longer than 5 minutes for a obtain of much less than $25, and much more than 25% refuse to wait longer than just two minutes.

So how does contactless payment evaluate in terms of speed? Quite properly, in fact It takes only 1/three to of the time of the typical cash or traditional credit card transaction:

CVS Pharmacy Average Cash Transaction = 33.7 seconds

Average Card Transaction (w/o Signature = 26.7 seconds

Average RF Transaction = 12.5 seconds

So contactless payments boost customers sense of security and reduce hated wait-times. Its no surprise, then, that customers adore it!

And the development price of contactless payments merchant accounts shows it. According to Brian Triplett, senior vice president for emerging solution development-Visa USA, The adoption price is the quickest weve seen for any new technologies. I do count on we will continue to see considerable growth whether or not its double or triple nicely have to wait and see.

What are the Rewards for Merchants?

The most clear advantage for merchants in getting contactless payments merchant accounts is that customers adore it, so theyll use it much more frequently and spend much more.

But the advantages dont finish there. Contactless payments merchant accounts also:

Leverage Leading of Wallet comfort - Like classic credit cards (and as opposed to cash), the clients card is usually in their wallet, which signifies theyre far more probably to spend, merely simply because they can.

Provide enhanced merchant differentiation - Particularly in the early days of adoption, merchants with contactless payments merchant accounts will stand out from the crowd. Theyll supply customers a new and exciting way to spend for goods and services.

Are less costly to operate - Transactions clear as a card-present, magnetic stripe-read transaction, but card readers are a fraction of the price of a new POS terminal.

Increase efficiency - Organizations with contactless payments merchant accounts appreciate considerably much more rapid verify-out occasions in the course of peak hours.

Are easy to install and upgrade - The hardware for contactless payments merchant accounts is all plug-n-play.

Improve client loyalty - Research show that clients return to the participating merchants place on an average of two occasions a month.

Leverage a general consumer movement away from cash (20%) - Even customers who dont specifically enjoy contactless payment most likely DO especially dislike money. By providing them an option, firms improve the likelihood of a sale.

Put simply, organizations with contactless payments merchant accounts take pleasure in increased transaction volume (typical 45%) and improved ticket size (typical 20%).

What Merchants Benefit Most from Contactless Payments Merchant Accounts?

Contactless payments merchant accounts are best for cash-heavy merchants. Target industries consist of:

QSR

Petroleum & C-retailer

Book Retailers

Dry Cleaners

Video Rental

Pharmacy

Grocery

Parking

Movie Theaters

Stadiums & Arenas

Theme Parks

Events

Cafeterias (Schools & Corporate)

Taxis

Transit

Vending

News Stands

Parking Garages

Conclusion The Future of Contactless Payments Merchant Accounts?

Contactless payment delivers substantial bottom-line advantages to merchants. Its the subsequent generation payment program thats faster, less difficult, more secure and a lot more hassle-free for customers, which signifies it facilitates more sales (greater volume transaction) of higher worth (ticket lift) for merchants. Its a win-win circumstance!