Security Or Speed In The Payment Process
It has been published that for every second of transaction time, 12 customers abandon their purchase. With EMV or “Chip cards” processing times take on average 17-25 seconds, with poorly configured terminals taking up to 70 seconds. The lengthy processing times of EMV are longer than magstripe, on the surface this “innovation” feels like a step backwards. But, “Chip cards” have been responsible for a 70% decrease in card fraud so the trade-off does appear worthwhile. However, this leads to the key question: “How can I accept credit card payments securely, but not lose customers who won’t wait for the transaction to process?” The solution: contactless EMV.
The chip on a contactless card communicates with the POS device through short-range wireless technology by virtue of an embedded antenna. Upon tapping a contactless card, a cryptographic code is created unique to this transaction. Ensuring that merchants can track payments and minimize the risk of fraudulent transactions.
But, this comes with additional hardware requirements at the point of sale. Many card processing tools do not process both EMV and NFC so retailers have to ensure that the selected terminal technology is suitable for brand relevant customer requirements. If a lot of customers pay from mobile apps, NFC could be more relevant.
EMV has been so effective in reducing fraud that even credit card companies who typically bear the higher costs of producing contactless cards, aren’t hesitant to support the technology given the reduction in fraud risk.
What can be faster than a simple tap on a card processing device. On the customer side, the contactless experience is seamless: Customers can simply place their card on the payment tool and in seconds the transaction is complete. But, for retailers this process can be more complex, with additional security driving increased processing times. Leveraging hardware that is designed to handle the complexities of contactless payments is critical, 17 seconds is very different from 70 seconds.
Customers need speedy transaction times, this has only become increasingly relevant in the last 6 months, as retailers across the globe have scrambled to take payments at the curbside, or find contactless solutions to reduce the high touch requirements of traditional tools. For retailers, contactless payments reduce a key pain point in the shopping process. Rather than waiting for a customer to enter a pin, or swipe their card, retailers can have their customers quickly tap a card to complete the purchase.
While this is only available on lower priced purchases this flexibility at the point of payment helps to quickly filter through customers that prioritize the convenience of brick-and-mortar. Experience focused customers are also supported in this process, retail staff are able to focus more on these customers, providing them attention and support as needed.
Comfort & Convenience
Much of the merchant payment processing experience for customers is all about speed, how quickly and easily they can pay and get out. Customers do not want to wait in line, and they also do not want to wait to pay. Retailers and credit card processors have spent years refining their point of sale experience, ensuring that customers feel comfortable and can easily purchase their products. Simply tapping one’s card on the payment tool and then leaving the retail environment is about as simple as the process can be.
Customer experience has also shifted in 2020, consumers now demand comfort in a different format. Customers want to feel safe in the retail environment, accessing all the precautions needed to ensure their safety and continued health. Even the World Health organization has stepped out in favor of contactless payment tools. Many central banks have resorted to quarantining physical bills, or burning banknotes to reduce the risk of passively spreading the virus.
29% of consumers are “extremely” or “very worried” about catching Coronavirus from physical money and so are primarily using card payments. Consumers are also concerned about catching the virus from a card payment, through a retail staff member physically touching the card. This is reflected in the data too, 30% of consumers have started using contactless payment methods since the outbreak started. It is highly likely that this shift will be permanent, customers now understand the value of contactless payments as well as the reduction in health risks as a result.
Teamwork Commerce + Global Payments Integrated
Global Payments Integrated is part of the Teamwork Commerce integration ecosystem, enabling retailers to create an optimal customer experience all the way through to the payment process. With a range of payment tools for retailers of all types Global Payments Integrated is the ideal hardware provider for physical retail transactions. With Genius, retailers can accept a myriad of payments, speed up checkout and boost customer engagement at the point of sale. From gateway to acquiring, Global Payments Integrated is a key partner in the Teamwork Commerce retail ecosystem.
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