Contactless Payments Merchant Accounts

Contactless Payments Merchant Accountscontactless payments merchant accounts is that
Consumers don't like carrying cash but are wary ofconsumers love it, so they'll use it more often and
handing over a credit card because of the risk ofspend more.
credit card fraud. But what's the alternative?But the benefits don't end there. Contactless
Contactless payments.payments merchant accounts also:
The next generation of electronic payment,• Leverage 'Top of Wallet' convenience - Like
contactless payments don't require the customer totraditional credit cards (and unlike cash), the
hand over their card. The whole transaction iscustomer's card is always in their wallet, which means
completed electronically, and their card never leavesthey're more likely to spend, simply because they
their hand. It's faster, easier and much more secure.can.
But what about the merchant? Should cash-heavy• Deliver increased merchant differentiation -
merchants rush into setting up a contactlessParticularly in the early days of adoption, merchants
payments merchant account? The answer is awith contactless payments merchant accounts will
resounding yes! Contactless payments merchant'stand out from the crowd.' They'll offer consumers a
accounts deliver even greater benefits to merchantsnew and exciting way to pay for goods and services.
than it does to consumers. Read on to find out how.• Are cheaper to operate - Transactions clear as a
What is Contactless Payment?card-present, magnetic stripe-read transaction, but
Contactless payments merchant accounts are thecard readers are a fraction of the cost of a new
third generation of electronic payments. (The firstPOS terminal.
generation was the old plastic credit card, and the• Increase efficiency - Businesses with contactless
second was the magnetic stripe card.) Merchantspayments merchant accounts enjoy much more rapid
with contactless payments merchant accounts enablecheck-out times during peak hours.
customers to use their credit cards for purchases• Are easy to install and upgrade - The hardware
without ever handing their card over. Contactlessfor contactless payments merchant accounts is all
payments merchant account transactions use one ofplug-n-play.
the following methods:• Increase customer loyalty - Studies show that
• Contactless readers;customers return to the participating merchant's
• Retailer cards/fobs;location on an average of two times a month.
• NFC (near field communication) enabled cell• Leverage a general consumer movement away
phone payment software; orfrom cash (20%) - Even customers who don't
• Back end processing/over the air paymentspecifically love contactless payment probably DO
software.specifically dislike cash. By offering them an
Customers love it!alternative, businesses increase the likelihood of a
Research shows that 86% of consumers want tosale.
carry less cash, and most carry less than $20.Put simply, businesses with contactless payments
(Survey was conducted in 2005 by lpsos andmerchant accounts enjoy increased transaction
commissioned by MasterCard). They're growing morevolume (average 45%) and increased ticket size
comfortable using credit, but they're still quite worried(average 20%).
about security issues when handing over their card. InWhat Merchants Benefit Most from Contactless
fact, 91% of likely users would feel more secure ifPayments Merchant Accounts?
they were allowed to hold their payment cardContactless payments merchant accounts are ideal
through their entire payment process.for cash-heavy merchants. Target industries include:
And then there's ease of use, speed and• QSR
convenience. Nationwide, almost 75% of respondents• Petroleum & C-store
refuse to wait in line longer than five minutes for a• Book Stores
purchase of less than $25, and more than 25%• Dry Cleaners
refuse to wait longer than just two minutes.• Video Rental
So how does contactless payment compare in terms• Pharmacy
of speed? Very well, in fact... It takes only 1/3 to• Grocery
½ of the time of the average cash or• Parking
traditional credit card transaction:• Movie Theaters
• CVS Pharmacy Average Cash Transaction = 33.7• Stadiums & Arenas
seconds• Theme Parks
• Average Card Transaction (w/o Signature = 26.7• Events
seconds• Cafeterias (Schools & Corporate)
• Average RF Transaction = 12.5 seconds• Taxis
So contactless payments increase customers' sense• Transit
of security and decrease hated wait-times. It's no• Vending
surprise, then, that customers love it!• News Stands
And the growth rate of contactless payments• Parking Garages
merchant accounts shows it. According to BrianConclusion - The Future of Contactless Payments
Triplett, senior vice president for emerging productMerchant Accounts?
development-Visa USA, "The adoption rate is theContactless payment offers significant bottom-line
fastest we've seen for any new technology. I dobenefits to merchants. It's the next generation
expect we will continue to see significant growth;payment system that's faster, easier, more secure
whether it's double or triple we'll have to wait andand more convenient for consumers, which means it
see."facilitates more sales (greater volume transaction) of
What are the Benefits for Merchants?greater value (ticket lift) for merchants. It's a win-win
The most obvious benefit for merchants in havingsituation!