Frequently Asked Questions

What are contactless payments? How do they work?

Contactless payments provide a new way to use credit cards. With Visa Contactless, the cardholder holds the card within one inch of a secure reader, instead of swiping it. A smart chip embedded in the card sends payment information to a reader. Every other aspect of the transaction is handled in the same way as with other Visa cards. Visa contactless cards began being issued in June 2005.

What are the liabilities associated with accepting contactless payments?

Visa contactless cards will offer the same protection as you would find with traditional Visa payments. Additionally, if you are registered with Visa, you will be protected from chargebacks relating to no signature on qualifying transaction types.

Do contactless transactions require a signature?

At participating merchants, Visa Contactless transactions under $25 will not require a signature, significantly speeding transactions.

How large is the opportunity for Visa in the contactless payments marketplace?

The proliferation of payment cards in all forms raises the standard of convenience for both consumers and merchants, paving a clear path for new methods, including contactless payments. Consumers make over $1.2 trillion in cash payments annually, and contactless payments provide an opportunity to capture some of that spend in segments such as quick-service restaurants, movie theaters and video game rental stores alone.

How will I benefit from accepting Visa contactless payments?

When available, Visa Contactless will offer you a wide range of benefits, notably the ability to drive incremental revenue, because cardholders are more apt to pay with their Visa contactless card instead of with cash. A recent Visa study showed that the average ticket for Visa purchases is consistently more than cash. Additionally, because Visa Contactless will increase the speed of service at checkout, you will be able to complete more transactions in less time. That leads to increased revenue and better optimization of personnel resources.

Will Visa have a separate brand for its contactless solution?

Visa advocates that the industry adopt a single Contactless Indicator that will convey to cardholders where they can use the contactless feature of their cards, while leveraging the existing acceptance marks that indicate what payment card brands are accepted at the point of sale. An industry-standard approach to identifying contactless payment acceptance through the use of an icon is a more suitable approach for contactless payments, as it will simplify the POS for merchants and will allow Members to brand their contactless programs as needed.

Is using Visa Contactless secure?

Yes. A Visa contactless card will offer the same cardholder protections as all Visa cards. In addition, the card will never leave the cardholder's hand, and because a checkout terminal can process only one card at a time, transactions errors will be prevented.

Can card information be read without the cardholder knowing it?

A cardholder must deliberately use their card at the point of sale: Visa contactless cards need be within one inch of a reader and correctly oriented to be read. In addition Visa Contactless transactions require specific information, including a unique transaction cryptogram using the highest level of authorized encryption.

What types of contactless readers are available today?

Two basic types of contactless readers are available: Peripheral Contactless Readers (PCRs) that plug in to existing conventional POS terminals, and Integrated Contactless Readers (ICRs) that replace traditional readers and offer both magnetic-stripe- and contactless-reading capabilities. In addition to traditional countertop terminals, readers are available for a range of specialty environments, including fuel pumps, ticket windows and drive-throughs. Visa will support you in determining which terminal type is most appropriate given your existing infrastructure, POS environment, and/or deployment scope.

Will I be able to deploy a single contactless terminal in order to accept Visa, MasterCard and American Express contactless devices?

Yes. Visa, MasterCard and American Express will all offer solutions that support the same standard for Radio Frequency (RF) cards—ISO 14443 A/B. This standard specifies the frequency, power, transmission and anti-collision parameters for contactless devices. Thus, only one contactless terminal will be required to accept such payment devices issued by Visa, MasterCard and American Express. However, full contactless specifications will differ across payment brands. You must procure peripheral readers/integrated terminals that are configured for all payment brands they want to accept. Visa's Contactless specification, issued January 2003, can be found at www.visa.com/Contactless.

What changes will I need to make to my POS to integrate contactless readers?

To deploy Peripheral Contactless Readers (PCRs) that plug into your existing conventional POS terminals, the payment application in your existing terminal must be modified to interface with the PCR. This is the case as long as the terminal has sufficient memory to support the upgraded application and available ports to support the external reader. The upgrade can happen a number of ways, depending upon your infrastructure and is generally similar to how you implement updates to your terminal payment application today. In addition, arrangements must be made for the new contactless readers to be accessed by consumers directly, which may require some reconfiguration of your POS footprint, if your existing terminals are not already customer-activated. Visa can provide additional details on specialty terminals as needed.