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Enabling NFC Payments

Enabling NFC Payments


Abdullah Abdelkafi


01 Aug 2019

Read time

3 Minutes



**The Longevity of NFC Payments:**

NFC chips have been installed inside credit cards to facilitate contactless payment transfers for over a decade. In fact, the first high street retail chain in the UK to introduce NFC enabled payments was EAT in 2008. Today, NFC is more notable, with smartphone integration being the most popular method of facilitating payments. In most recent years, NFC integration has since expanded to include smartwatches using omni-device payment software such as Google Pay and Apple Pay.

**Digital Payments:**

NFC is utilized in payment processing as a ‘tap and go’ service. Commonly on Apple Pay, and Google Pay (with versions 4.4+), these services utilize ‘Near Field Communication (NFC)’. Transferring data wirelessly, this tap and pay system requires devices to be within 4 cm of one another.
Developed from RFID (radio frequency identification) technology, NFC works without the internet, prompting transfers automatically when in range of another device. Phones and devices with these payment methods enabled will contain specific NFC chips to establish a transfer. Unlike Bluetooth, the low-power requirement of NFC cancels out the need for manual set up and pairing codes; making the process a convenient and speedy choice.
All NFC requires is for both devices to be unlocked and remain within the approximated range until the transfer is completed.

**Is NFC Safe?**

Whilst NFC is relatively safe; as it requires proximity in its basic functionality, there are a few who try to phish information with NFC enabled skimming apps. However, developers such as Apple and Android have strived to implement and maintain safeguarding measures such as the encryption of card information. This makes it a secure option for payment processing. There is also the added layer of security provided by smartphone Touch ID and Face ID precautions. NFC readers can also only pair to one device at a time. At the point of sale, it is impossible for a nearby customer to accidentally pay for someone else’s purchases; eliminating any added inconvenience in this digitised process.

**How it Works Today:**

Dawning the end of an era for the hard-wallet, NFC-enabled payments require customers to hold their phone within centimetres of the NFC-enabled smart terminal.
A benefit to NFC is that a customer can integrate multiple payment methods into their smartphone utilising its digitised capabilities.
NFC chips are programmed to operate in 3 modes. The supporting mode of operation for payment processing is card emulation, which allows the customer’s device to be read as a credit card would and be accessed by the NFC point of sale terminal.


**NFC and Your Business:**

As a Merchant, to accept NFC you need to acquire an NFC-enabled reader. A reader that is both EMV and NFC enabled is typically affordable, and like traditional EMV payments (chip and pin) is an authenticated payment. However, an NFC chip can be considered more secure than a magnetic strip and faster than an EMV payment.

In acquiring your smart terminal, the Merchant must also ensure that their credit card processing plan accepts payments from e-wallets. It is common that providers are unable to provide processing services such as these, as an inclusive service.

Total Processing handles monthly management and set up of point of sale terminals at no-fee (excluding device rental). Charging a price-per-transaction only, our Merchant services minimize this process for you; maximizing the efficiency of your business. Our bespoke CRM dashboard allows you to interact with and oversee customer spending, whilst we ensure you get the best rates for your business.


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