An Introduction to Contactless >>

Contactless is a new feature being introduced on payment cards (debit, credit and pre-paid) in the UK to make purchases quicker and more convenient for both retailers and consumers.

When making payments of £10 or less, a card featuring Contactless technology can simply be held to the reader to pay - rather than inserting a card into the chip & PIN machine and entering a PIN. In just a few seconds the payment will be complete and the lights on the reader will illuminate, confirming that the transaction has been approved.

Contactless cards are secured by the same advanced technology that underpins chip and PIN. Although a Contactless transaction does not require a PIN to be entered, from time to time the terminal will ask that the cardholder undertake a full contact chip and PIN transaction. This is designed to deter fraudulent use should the card be lost or stolen; each time a PIN is used it re-affirms that the cardholder is in possession of their card.

The term Contactless refers to the fact that the card does not need to physically make contact with the reader. The information required for the transaction is transmitted from an antenna found in the Contactless card using radio frequency identification (RFID) technology.

Contactless technology has been around for many years and has a variety of uses: transportation ticketing and building access control for example. The specific use of Contactless technology for payment cards is similar, although it uses more sophisticated security controls. Contactless payment cards being introduced in the UK are based on the international proximity card standard ISO/ IEC 14443.

The Benefits of Contactless Cards

Contactless provides many significant benefits for both retailers and their customers; including: 

Benefits of accepting Contactless cards:

• fast card payment transactions of £10 and under, in less than a second
• no signature or PIN required for authorisation - except for an occasional security check
• reduced queues, allowing you to serve more customers
• Contactless card users will prefer retailers who accept Contactless payments
• increased spend from customers who are no longer limited by the change in their pocket
• same secure network as chip and PIN
• reduces errors and risks associated with cash handling
• improving service quality and meeting customer demand will increase customer satisfaction  

 Benefits for your customers:

• no need to have the correct change
• no need to mess about with PIN numbers or signatures - except for an occasional security check
• no need to queue for so long; as Contactless speeds up the transactions
• reduces the need to find a cash machine or carry cash
• more convenient than other types of payment
• no need to carry an additional card - contactless capability can be provided on a standard credit, debit or pre-paid card