Merchants Accept Contactless Credit Cards Have Higher Security

Merchants accepting credit cards, and especially the contactless payment cards like MasterCard’s PayPass and Visa’s payWave are finding increases in sales and higher security. Both contactless payment cards utilize the RFID technology – tiny chips that identify the card account as well as issue a code for each transaction. While public transportation terminals and gas stations have implemented the technology, retail merchants accepting credit cards across America have been slower to adopt.

The major credit card companies in Japan and the US are pushing the new technology as safer than the prior use of credit card and PIN, since criminals had figured out how to access both PIN and the PIN encryption technology, leaving customers open to credit card fraud. The RFID technology solves the encryption hacking situation for customers and business owners.

Merchants who improve their credit card processing system to accept the new “wave” in payment services are tapping into the growing population of post-Baby boomer generations. These are consumers who demographically embrace new technologies quickly. MasterCard found that users who adopt their PayPass credit cards tend to use them as their preferred card and spending increases 28% – 42%.

Many college and high school buyers open checking accounts and never request checks – they pay bills online and use debit or credit cards for minor and major sales transactions that prior generations always paid with cash or checks. Merchants also find the reduction in cash purchases has reduced their losses from cash register shortfalls at the end of the day.

The trend to use credit cards for more purchases helps those merchants who find business cash advances profitable ways to expand their businesses and ride out economic bumps in the road. US Business Finance Corp is a cutting edge alternative business financing company offering its clients competitive rates on merchant credit card processing services and merchant cash advances.

If your business is ready to make better use of your Visa and MasterCard sales traffic, call our small business consultants for a free session to see how your business can benefit and come out ahead from our alternative business lending services.

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Filed under: Business Solutions, MasterCard/VISA, Office and Technology