What’s in the article?
- Limits for contactless payments are going up to £100 per sale.
- This is important because more and more people expect to be able to use cards like this.
- It is safe to use contactless.
- It costs the same as chip and pin sales.
Less than a year since the limit went from £30 to £45 – we are going to see limits for contactless sales rise again to £100 – but what does this mean for you as a merchant? What will be the impact on shops and other businesses taking payment this way.
The short answer is – it’s all positive.
Contactless payment is exactly the same cost as using a regular chip and pin system. The full £100 sale would cost you 53p on our systems, whichever one you use. But there are more positives to contactless sales.
Cash is fading from our economy. Fewer people carry it and we know it is on a downward spiral so quick and efficient options are vital.
Consumer use of contactless is rising sharply – in August 2020 £8.4billion was spent on contactless and the treasury has also said 8 out of 10 UK adults used contactless payments in 2019. This summer, as we open up from a prolonged lock down, is likely to be a bumper quarter.
People want as little physical contact as possible at the moment. The spread of coronavirus may be coming back under control, but this is due to the vast majority of people being so careful about being socially distant and making sure they don’t spread the virus.
The technology is secure
Although it is legal from now, many systems will not be ready to deal with the increase until later in the year. We advise that you get in touch with us as quickly as possible to be ahead of the crowd. Customers will have heard about the increase and will be keen to make use of it.
But – is it safe?
There are already safeguards in place making sure that retailers and customers do not lose out. Cards have to be ‘reset’ with a chip and pin transaction after a set number of contactless ones, and the bank will cover the lost amounts if the card has been reported stolen. This means retailers are safe in the knowledge that they can take a payment without risk to their bottom line.
The chips are incredibly secure – they can’t be cloned like the older magnetic strip cards and the technology is getting better all the time. They also only work with verified terminals – so al in all they are a great option for you.
How can Kernow Merchant Services help?
First up, any system you adopt now will be subscription free until the end of April – when you will be able to do actual business.
Get in touch to look at how we can get you up and running. If you already have a terminal – check our quote generator here to see how much you will save with us.
When you are ready to begin saving and using up to date technology – call one of our consultants on 07444740310 and we will search out the best deal for you.