Near Field Contactless (NFC) payments are the wave of the future with most new consumer credit cards and many new mobile phones coming equipment to make contactless payments. As such, contactless payment terminals have become the present and future of credit card transactions. Also known as "tap and pay," contactless payment provides benefits to retailers and consumers alike, particularly in the areas of speed and convenience.
Contactless payments are simply transactions that do not require physical connection between your customers' credit card and the terminal. Smart chip technology, otherwise known as RFID, is supported by a secure controller, internal memory, and a small built-in antenna that transmits information to a reader through radio frequency.
The primary advantages of a contactless payment reader over traditional swipe cards are speed and convenience. Consumers can just tap the contactless payment terminal, eliminating the need for a transfer of hands with a credit card and a receipt signature. In turn, check-out lines become shorter as transaction times become faster.
Contactless payments are best suited for quick-service retailers, such as convenience stores, fast-food restaurants, movie theaters, pharmacy / drug stores, and gas stations and for those whose average ticket is $25 or less.
Retailers with major POS terminal providers can easily upgrade their existing system with a plug-and-play contactless payment device.