www.southbeachcapitaladvance.com/how-consumers-and-merchants-make-contactless-payments
You’ve probably seen this take place at a restaurant or supermarket or even a vending machine – the cashier ring up your order and then you simply tap your contactless credit card on the payment terminal. It may appear as if magic, but in reality it’s an innovative method of paying that can improve your business’s efficiency and cut down on friction with customers.
The process works using near-field communication (NFC) technology. When you tap your card near the POS system that prompts payment, the information is transmitted electronically from the chip of the card to your account. The system will then send a message back to you with the sound of a beep, checkmark, or green light which confirms the transaction was accepted.
Contactless chips are secure unlike traditional cards with magnetic strips. This makes it much more difficult for hackers to exploit the device to steal data and commit fraud. This reduces the risk to you and your customers, and is another reason contactless transactions are so popular.
Most modern debit and credit cards come with NFC therefore you can use them to make payments at many places that accept payment via contactless. You can also connect them to payment platforms that are digital and mobile wallets that allow you to make contactless transactions with your smartphone. Examples include Apple Pay, Google Pay, or Samsung Pay. These mobile apps can be used in conjunction with or as a substitute for your credit or debit card, and are ideal for people who have multiple cards.