Record numbers of customers are now using contactless card readers to pay for items. But how do they work for your business when it comes to processing payment?
A record proportion of debit card payments by customers were made using a contactless card reader in August, according to the latest stats by UK Finance.
In total, contactless payments accounted for 62% of all debit card transactions, an increase of 7% compared to July.
Just under half (45%) of all credit card transactions were contactless in August, up 14.6% compared to the previous month.
The record levels of contactless payments, coming about when restrictions were lifted for the UK’s first lockdown coupled with an increased £45 spending limit, further highlights why businesses need to update their payment processes to include a contactless card reader.
The vast majority of shoppers are now using contactless to pay for items.
Many now also believe that the £45 spending limit is still too low.
But from a business standpoint, how can you be sure you benefit from this rising tide of contactless payments?
And how does a contactless card reader actually process transactions and make sure you get paid?
In this blog, we’ll tell you.
A contactless card reader - you obviously need the contactless card reader to accept payments. The latest card payment machines accept all major debit and credit cards, along with digital payments and mobile wallets.
A business bank account - you can link your business account to your merchant account to receive final payments to your business.
A merchant account - to accept contactless payments you need to have a merchant account. This is essentially a holding account where money from contactless transactions is held before being authorised and deposited into your business account.
Contactless card readers are fitted with a chip that emits radio waves which can “communicate” with a similar chip installed into payment cards and mobile devices that incorporate digital wallets.
When a customer taps their payment card or device against the card reader the chip in the reader connects with the card and processes the transaction.
The process is a pretty simple one:
Apart from the final deposit of funds into your account, this whole process takes a few seconds to run.
If the customer doesn’t have the funds available, then the transaction simply fails - so you can be totally confident that you’ll receive the money into your business for all approved transactions.
With record numbers of shoppers turning to contactless card readers to pay, it is clear that businesses which haven’t already started need to update their payment methods to include contactless payments.
If you’re already using a contactless card reader, are you sure you’re getting the best deal you can?
Are you suddenly paying extra fees on top of what you were told you’d be charged?
Have you started thinking it’s not worth the investment?
Get in touch with Handepay and we can figure out how to either get you started with a contactless card reader, or get you on to a better deal.
In most cases, we’ll even pay your cancellation fee if your current provider tries to charge you for leaving before the end of your contract.
If you’re not ready to talk to us but are still wondering if you could save money on your card reader, take our Price Challenge and let’s see how much you could save if you do decide to switch.