Tap to Pay - Learn About Contactless Payments (2024)

FAQs

Tap to Pay - Learn About Contactless Payments? ›

Contactless payments are simple, fast, secure and touch-free ways to pay in person using a payment card, mobile wallet or payment-enabled wearable, like a smartwatch or fitness tracker. With tap and go, you simply tap or hold your card or device on the merchant's payments reader to complete the transaction.

Difference between contactless payments and tap to pay

Tap to pay is a form of contactless payment, but not all contactless payments are tap to pay. Tap to pay specifically involves physically tapping a device or card to make a payment using a specific radio frequency (more on that later).

Q: How does Tap to Pay work? Tap to Pay operates through Near Field Communication (NFC) technology, a short-range wireless communication system that allows data exchange between devices in close proximity.

Contactless payment is a secure payment method using a debit or credit card, smartcard, or another payment device by using RFID technology and near-field communication. To use the system, a consumer taps the payment card near a point-of-sale terminal equipped with the technology.

Because contactless payments require neither PIN nor signature authorisation, lost or stolen contactless cards can be used to make fraudulent transactions.

Tap-to-pay offers enhanced security through encrypted communication and tokenization, reducing the risk of data breaches and fraud compared to traditional credit card swiping methods.

Little to no extra cost – Most payment processors charge no more for tap to pay than they do for the older methods of accepting debit and credit cards. Contactless was originally rolled out for use by debit and credit cards.

The first ever widespread use of contactless payment was recorded in South Korea in 1995, where the Seoul Bus Transportation Association issued a UPass card for passengers. It allowed making contactless payments for trips.

This contactless payment method is also referred to as Tap to Pay. If you're still unsure if your card is RFID, find a contactless reader — it will have the same WiFi-looking symbol as your credit card — and try to make a payment. If your payment goes through, you'll know you have an RFID card.

Use of tap-to-pay at the POS has risen steadily in the U.S. as NFC technology has become more commonly included in both mobile devices and payment terminals. This rise is expected to continue—indeed, analysts estimate that the value of digital wallet tap-to-pay transactions will grow by over 150 percent by 2028.

Why is tap to pay more secure? ›

Tap-to-pay is less vulnerable to credit card skimming and other types of fraud since the card itself never touches the payment terminal for a transaction. “Skimming” involves using a hidden device to read and translate credit card data when a credit card is swiped to make a purchase.

You'll just need an active data signal or WiFi connection for this to work. Tap to Pay is great for on-the-go businesses. Whether you're a personal trainer or a roaming vendor, you can now run your business from the palm of your hand without fumbling around for a terminal.

Contactless credit cards also have their drawbacks, including: Lack of reliability: One of the main disadvantages of contactless credit cards is their occasional unreliability. Sometimes, contactless payments don't go through even when the card reader signals that it accepts contactless cards.

It's also important to keep track of your cards. If you lose a contactless payment card, a criminal could use it for payment without a signature, PIN or other verification. Report any lost or stolen cards, or suspicious activity on your account, to your financial institution as soon as possible.

When used for contactless payment, RFID technology is deployed via a small computer chip inside a credit or debit card or a smartphone. A kind of RFID system called NFC is actually so secure its use is mandated by the U.S. Department of Defense and is required in many countries' passports.

To prepare your Android device to use Tap to Pay: Ensure your device is running Android 9 or higher. On your device, navigate to Settings > Connections > NFC and Contactless Payments, then toggle ON Use NFC.

Using tap to pay can be a more convenient and secure way to make purchases than swiping or inserting your credit card. Credit or debit cards that have contactless technology feature a symbol of four curved lines that look a bit like the Wi-Fi symbol turned on its side.

Travelling using pay as you go with contactless

If you do not touch out, this will show as an incomplete journey, and you will be charged a maximum fare of up to £29. If you do not have a valid ticket for your whole journey, you may be liable to pay a full fare or Penalty Fare.