The Benefits of Contactless Payments with American Express

The payment industry has undergone drastic changes in the past few years. Starting from traditional cash payments to card swiping norms, shoppers are now finding the new contactless and digital payment modes more exciting and convenient. With American Express contactless cards, users need a mobile device or a card to hover over the card reader or POS terminal to make a transaction.

Digital payments and, above all, contactless payments are changing the way buyers pay for their purchases at both brick-and-mortar stores and online shopping portals. To start accepting contactless payments from buyers, merchants are also equipped with advanced sales terminals and card readers with built-in contactless payment technology.

In the past few years, contactless payments have become the dominant mode of transaction across multiple retailers and industries. Both merchants and customers find this more convenient and simple, as it ensures security and speed. The funds are transferred almost instantly to the merchant’s bank account, reducing the risk of card fraud and helping retailers maintain their cash flow. Similarly, customers can eliminate the need to carry cash or even cards by using a mobile device such as a smartphone, smartwatch, or tablet to make payments at the point-of-sale terminal.

What are Contactless Payments?

Contactless payment is a secure payment mode that allows buyers to purchase products or services through credit/debit cards, smart cards, or other payment devices, such as smartphones and key fobs. The contactless system works through a short-range wireless technology, wherein the card reader can pick up or detect the signal only when the card or mobile device is placed close to the payment processor. This modern payment method works through RFID (radio frequency identification) and NFC (near-field communication).

After tapping or waving the card or other payment device over the card reader, a link will be created between the POS terminal and the bank account. After the payment is authorized, the funds will be transferred to the merchant’s account. The entire process takes place instantly, which makes contactless payments one of the fastest and most convenient payment methods.

How Does it Work?

As mentioned above, the buyer must wave or tap the card reader using contactless payment devices like cards or smartphones. Some banks and merchants also call contactless payments as tap-and-go owners or simply taps.

Let’s discuss how the process works in detail. When the cards come in contact with the payment terminal, they use RFID technology built within them. As the buyer taps or hovers the card over the POS device, the card contacts the terminal, and the transaction is processed. When the terminal accepts the payment, it gives a green signal or makes a beep sound.

The point-of-sale terminal then authenticates the card data, after which the system transfers the payment information to the card issuer. Finally, the card issuer approves the payment after verification.

Consumers can also add credit or debit cards to their contactless payment apps. These payment apps or e-wallets are the most popular payment methods that help customers make quick transactions. They can use these online payment tools to complete online and offline purchases. By adding their cards to these payment tools, they can save time by making quick transactions without entering their card details every time.

The best part about contactless payments is that they are highly secure and safe, as the consumers are not required to enter any PIN. This mode of payment is prevalent in certain nations, like the UK, Canada, Australia, and South Korea.

Shoppers can pay for offline or online purchases using credit or debit cards. These cards are designed to allow buyers to make contactless payments, as they have built-in RFID technology. That’s why they are also known as chip cards.

Chip cards that support contactless payments are not like traditional cards. With normal debit or credit cards, shoppers must swipe or tap the card and enter the card PIN to authorize the transaction. However, one can use a card or PIN in contactless payments.

To ensure that a particular merchant accepts contactless payments, look for the special symbol on their POS devices indicating that the retailer accepts contactless payments. The logo is similar to a Wi-Fi symbol.

Benefits of Using Contactless Payments

Here are some critical advantages of contactless payments, which are applicable for merchants and customers.

1.    Safe and Secure

There is a misconception about contactless payments. Many payers think that hackers can steal their card information. But since all transactions are verified and authenticated, it’s hard for fraudsters to breach card information, making contactless payments safe and secure.

Furthermore, since contactless payments involve a simple tap-to-pay technology, they are more secure and reliable than other modes of payment. The chip technology used in contactless cards is designed to protect the cardholder from fraud attacks or unauthorized purchases. Chip cards also include robust safety technologies like dynamic data and encryption.

2.    Quick and Instant

Contactless payments are fast, as the funds are settled instantly. They also reduce queues and save time for both sales representatives and customers. Besides, cardholders do not need to enter their card PIN to make a transaction. Simply tapping or waving their cards will be sufficient.

3.    Convenience

Apart from saving time, contactless payments eliminate the hassle of handling cash at checkout points. Managing large amounts of cash daily is challenging for merchants, so they can regularize their cash flow by accepting contactless transactions.

Besides, customers can go cashless everywhere, especially while traveling abroad. Carrying bulky wallets is risky and inconvenient in terms of portability. To complete a transaction at your favorite brand store, you need your smart device or chip card, and you can enjoy shopping for your essentials.

4.    Loyalty Benefits and Rewards

Many brand stores run multiple loyalty programs to offer their consumers varying rewards and benefits on purchases made with tap-to-pay cards or e-wallets. It encourages buyers to use these convenient methods more often than traditional payment methods, such as by cash or normal debit/credit cards (without the chip technology).

When shoppers use these tap-to-pay methods, they are automatically eligible to get instant cashback or discounts during the transaction. Some merchants also provide loyalty points, which buyers can redeem on their next purchases. In addition to merchants, banks and card issuers offer incentives and cashback to consumers using the contactless payment feature.

5.    Improved Customer Experience

According to studies, businesses that provide the contactless payment option to their clients successfully offer quicker and smoother checkout experience, reducing waiting periods. This way, the brick-and-mortar stores can get more returning customers, which boosts their sales and revenue. As a result, it ultimately improves customer engagement rates.

6.    Top-notch Operational Efficiency

By adopting advanced contactless payments, businesses can save their vital resources, such as time and money. It also minimizes merchants’ time counting cash, operating card readers, or other POS terminals. They can also work with lesser workforce requirements, such as fewer staff at the sales points.

Tap-and-pay methods are time-saving and can reduce queues. Therefore, fewer sales representatives are required at checkout points since a few personnel can handle sales efficiently.

7.    No Additional Costs

There are no extra processing fees involved in contactless payments. Merchants must pay the same charges as they do for other debit and credit card payments. The same fee applies to tap-to-pay transactions, similar to regular debit/credit cards. So, you don’t need to worry about paying hefty fees for accepting contactless payments.

8.    Revenue Growth

With contactless payments, businesses can build their revenue by generating more sales. By providing customers with more convenient payment options, merchants will gain more returning customers, which means more business for you.

Some card brands, such as American Express, provide a comprehensive suite to merchants and cardholders. In short, businesses can gain the advantage of criminal revenue by offering a technology that motivates shoppers to use their contactless cards instead of cash. Special credit cards offer multiple perks and benefits, such as reward points, which customers can redeem on their next purchases.

American Express Contactless Cards

American Express contactless cards are designed with the best-in-class tap-to-pay payment technologies. They have a dual interface to provide additional convenience: a) contactless technology and b) regular cards that involve chip and PIN technology. The best part is that Amex contactless cards are accepted worldwide, so you can go cashless in many countries, which can become your savior during your international tours.

Merchants are implementing this technology to encourage buyers to use contactless-enabled cards, such as the ones from American Express, that offer higher security. Besides, it is a good investment for the future growth of the business. Moreover, Amex contactless cards offer a complete fraud protection guarantee, giving merchants and cardholders peace of mind.

How to Use American Express Contactless Cards

Customers can use this contactless technology to make payments using their American Express cards. With Amex cards, the buyers must follow two simple steps: a) hold or wave the card close to the card reader, and b) wait for the device to authorize the payment. And done! The money will be transferred from their account to that of the merchant. Furthermore, with Amex contactless cards, users can enjoy top-notch customer service, an excellent fraud protection facility, and card member perks and rewards.

However, before initiating the transaction, check whether your card supports contactless transactions. Look for the contactless icon on your card, which looks like a Wi-Fi symbol. This indicates that your debit or credit card is contactless-enabled.

Similarly, check for this symbol at the shop, especially at the sales point. If the POS terminal or card reader supports contactless transactions, it should have this logo. Another excellent way is to check whether a particular retailer accepts contactless payments. The user must visit the American Express Maps portal and click on the merchant you plan to buy from. If the business has the Wi-Fi logo, you can make contactless payments at their store.

So, whenever you see this Wi-Fi logo on a sales terminal or your credit card, you can choose your convenient payment option – be it using American Express cards or making online or digital payments through UPI, e-wallets, etc.

Security Features in American Express Contactless Cards

Cardholders can enjoy the following security features in their American Express contactless cards.

• Safe and Secured Transactions: Amex contactless cards use a special Chip and PIN technology to provide safety and protection against unauthorized transactions. Besides, these cards use unique encryption keys that protect cardholders and merchants against counterfeiting.
• Fraud Protection Guarantee: All American Express card members are covered by Amex’s unique Fraud Protection Guarantee. In other words, the cardholder won’t be held responsible for fraudulent transactions. However, card members must also safely store their cards, PINs, account details, and other sensitive information to protect their cards against hackers.
• Intelligent Security: Amex’s fraud protection policies are designed by experienced experts who analyze many fraud cases to formulate a strong fraud protection technology. American Express’s security protocols and fraud protection norms are constantly improving as more sophisticated technology is implemented. The team is also developing new security techniques after analyzing the spending patterns of certain customers.
• Protection Plan: Users can purchase a fraud protection plan to cover any damage caused by accidental loss or theft of the card. However, this feature is rolled out for select Amex cards. On selective Amex cards, the cardholder’s eligible transactions may be covered for around 90 or 120 days (based on the type of Amex card). These coverages and insurance have begun since the date of the purchase using the contactless-enabled Amex card. When the card receives minor physical damage or is otherwise lost or stolen, the user is eligible for up to $1,000 per occurrence of accidental damage or card being lost.
• Travel Emergency Assistance: This feature is available on a few eligible cards. If a card member travels abroad and faces problems due to lack of cash. For emergency assistance, you can contact the 24-hour phone support service. This feature can also refer an individual to various professionals, like doctors, hospitals, embassies, lawyers, etc.
• American Express Travel Insurance: If you are trying to use your contactless payments internationally or across the country. By investing in a travel insurance policy, you will get covered for flight delays, trip cancellations, and other kinds of interruptions. The insurance also covers medical bills in case of an emergency. Furthermore, the policy also offers coverage for the loss or physical damage of personal items, such as loss, damage, or theft of bags and baggage.
• Notifications and Alerts: You can keep track of all your transactions in real-time. It helps you see where your money is going and whether fraudulent activities are burning a hole in your pocket. American Express has advanced and innovative notification and alert systems. You will receive personalized alerts and updates whenever a payment is made. You can receive these updates and alerts through SMS or email or install the Amex app to stay vigilant.

If you feel a particular transaction is unauthorized or counterfeited, contact the 24/7 customer support service. You will find the support team contact details on the back of your Amex card.

Some Helpful Tips to Use Contactless Cards Efficiently

Follow these tips to use your cards more efficiently and save yourself from lost funds.

• Avoid tapping your purse or wallet on the card reader. If you have more than one card with contactless payment options, there is a high chance that money may be deducted from multiple cards. So, always take out your desired card and pay properly by holding only one card close to the POS terminal.
• If the contactless feature of your card is not working, there may be an issue with the card reader or your card itself. Firstly, check whether the POS terminal has the contactless logo before paying. If it does and your transaction is not getting processed, or your card is not getting detected, contact Amex’s support team or apply for a new one if the old card is expired or damaged. However, there’s good news. You can still regularly use the card by swiping and entering the PIN to authorize the payment.
• Usually, there is no limit on how many times you can use the contactless feature of your card in a day. But you can ask your card issuer, such as American Express, whether there is any limit. The same might also be mentioned while opting for the new card. However, keep in mind that sales representatives may ask for the card PIN from time to time based on their system or operational requirements.

Final Words

The trend of using contactless payments and tap-to-pay cards is rising among millennials since smart devices are intensifying each day. The young generation finds carrying large amounts of cash difficult, so they prefer to go digital with their transactions and bill payments. The good news is that most Amex products have built-in contactless technology. So, dive in and use the contactless feature to travel cash-free.