Merchant Services

FAQ: Contactless Payments

What is a contactless payment?
Contactless payments are those that transmit data between a point-of-sale device (equipped with a contactless reader) and a contactless-enabled payment instrument (credit card, key fob, smart phone, etc.).

Contactless payments can be conducted using credit cards and debit cards, key fobs, smart cards or other devices that use RFID or NFC wireless technology for making secure POS payments.

How are contactless payments different from mobile payments?
When a mobile phone is being used as the customer’s payment instrument, it is referred to as a "contactless payment".

When the merchant is using a mobile phone as a payment processing device, that would be referred to as a "mobile payment" or mobile payment acceptance.

How would contactless payments work at my business?
During a sale, the Chase Paymentech Future Proof terminal will display the “Insert/Swipe/Tap" prompt and the contactless symbol. At this time, the customer should touch or "tap" their contactless card or device to the terminal’s screen. The terminal will process the contactless payment transaction as if a card were swiped or inserted.

The Quick Reference Guide for our Future Proof Ingenico device will give you a better idea as to the terminal’s capabilities and how it would perform in your environment.

How can contactless payments benefit my business?
Contactless payments allow the customer to simply tap their contactless-enabled payment instrument (credit card, key fob, smart phone, etc.) on your point-of-sale device, removing the need to swipe, insert or manually key.

This saves time on both sides of the counter, alleviating lines that slow your business and frustrate your customers.

How can contactless payments cut down on fraud?
The microchips that are embedded in contactless payment instruments dynamically generate card verification values (the numbers traditionally printed on the back of a credit card) for each transaction. This ensures that contactless payments will be very difficult to counterfeit.

As an added security measure, transaction amounts over a pre-set threshold will require a card swipe or insert.

Why should I invest in contactless now?
Contactless is not just another payment acceptance technology; it will provide a combined solution for integrating payment with non-payment applications, which could increase consumer traffic and sales.

Emerging non-payment solutions such as digital couponing, loyalty programs and mobile wallets will help drive customers into stores. However, these consumers will expect merchants to integrate these new services with their payment in one transaction.

Mobile wallets are available and in use today. Consumers can download these applications onto their mobile devices and store their payment credentials digitally. If they make a purchase at a POS that accepts contactless payments, they simply unlock their device and tap it to the terminal to initiate the payment. For added security, most mobile wallets and mobile devices now offer password protection and PIN entry to verify the cardholder’s identity and intent.

Why should I partner with Chase Paymentech to implement this technology?
We understand this technology and have been processing RFID contactless payments for peripheral, plug-in contactless readers since 2005. Our new Future Proof terminal supports both RFID and NFC wireless technologies for contactless payments.

What if I already accept contactless payments and am having trouble?
If you’re using the Future Proof terminal, there are helpful tips and troubleshooting steps available in the Ingenico iCT250 How Tos and Quick Reference Guide.

If the customer’s tap doesn’t work properly, then you should attempt to swipe, insert or manually enter (key) the card on your machine.

If this experience is limited to a particular customer, then they may need to contact their issuing bank (issuer) to determine whether their account has been locked.

If you continue to experience trouble and are a Chase Paymentech merchant, you can contact us for assistance.