How Businesses Can Engage in Contactless Banking

Driven by the COVID-19 pandemic, more businesses and their customers are turning to contactless payments for safety and convenience. If you’ve been wondering how to set up contactless payments, this article will answer your questions and explain everything you need to know about contactless credit card processing. As your local Merchant Services provider in Illinois, Town and Country Bank and Peoples Prosperity Bank is here to help with any other questions and concerns you may have.

What is contactless payment?

Also known as “tap-and-go,” this technology offers a secure method to pay for merchandise and services with a debit, credit, or smartcard. To accept contactless payment, you’ll need a point-of-sale terminal equipped with radio frequency identification (RFID) and near-field communication (NFC) technology.

What are the different types of contactless payment?

These are the two primary types of contactless payments you should know about:

Near-Field Communication

This is the Wi-Fi symbol you see on NFC-enabled cards and payment terminals. With NFC, customers simply tap their card on the terminal screen. Digital wallet apps can also be processed through NFC.

Digital Payments

Customers can pay in advance through a website, online payment processor, or app. Goods can then be delivered or picked up through a contactless curbside pickup. 

Benefits of contactless payments

• Reduces spread of germs: No physical contact with the credit card terminal means less risk for customers and employees alike.
• Faster processing time: Whether they’ve paid in advance or they can just tap their credit or debit card with an NFC Terminal, contactless payments reduce the amount of time that each customer spends waiting in line.
• Convenience: Even without the risk of spreading COVID-19, many consumers, especially younger generations, prefer contactless payment because it’s so easy. No need to carry cash or enter your debit card pin. Simply tap your card or pay in advance online or through an app. Contactless payments also offer convenience to employees who don’t have to worry about having enough cash and coins to give change.
• More business: Research has shown that customers will often spend over 18% more when they can pay with a card. So accepting card payments, including contactless payments, could increase the amount of your average transaction.

What do I need to start contactless payments? 

If you already have a point-of-sale terminal, check for the NFC logo to see if you’re equipped to accept contactless payments. If not, you’ll need to upgrade or replace your credit card processing equipment. Our Treasury Management team can answer any questions you have and help you assess your options.

Once you have the right equipment, you’ll need to train your staff on any new equipment and software. Employees may also need to educate customers on your new contactless payment options, as not everyone is aware of NFC or how to use it. Post signs on your windows and on your website so people looking for convenience or those with COVID-19 concerns know they can safely shop at your store. 

Additional contactless banking resources

As a business owner, you need to protect yourself and your employees, as well as your customers. Here are all the ways you can do your banking without visiting a physical branch.

• Cash Management: Transfer funds, pay bills, collect from customers, direct deposit employee payroll, and utilize our Positive Pay system to mitigate fraud.
• Business Online Banking: Manage all your business checking and savings transactions from anywhere, at any time from your PC, laptop, or mobile device.
• Remote Teller: Deposit checks from the comfort and convenience of your office, place of business, or your mobile device. 
• Lockbox Services: Customers can send checks to a designated P.O. Box, and we’ll take care of the rest, collecting and depositing them into your account automatically. 

Contact our business banking team today!

At Town and Country Bank and Peoples Prosperity Bank, we are committed to investing in and supporting local businesses. Learn more about our Business Accounts as well as Treasury Management Services, and contact our Business Banking team today to find convenient solutions to all your banking needs!