Contactless Pay Technology Opens Up A New Frontier for Vending
Proximity payment systems powered by radio frequency identification media pushes vending to the forefront of dynamic changes taking place in retail commerce.
Visa and MasterCard: No signature needed for transactions below $25
Visa and MasterCard announced that beginning Jan. 1, 2006, they will no longer require a cardholder signature or printed receipt for domestic transactions of $25 or less settled with contactless media (including smart cards, credit cards and debit cards).
Historically, Visa allowed merchants in certain category markets where purchase amounts are small, such as fast food restaurants, to dispense with the signature on purchases below $15. Extending the limit to $25 and including all purchases made using an RFID device adds to the convenience of contactless payments. Visa estimates that nearly half its U.S. transactions are under $25.
The introduction of contactless payment may well convince merchants who have not accepted credit or debit cards, particularly operators of quick-service restaurants, to accept them. The latest rules for VisaNet network have been updated to include the capability to identify a contactless transaction as a means of guaranteeing payments for RFID transactions under $25.
MasterCard is likely to make similar adjustments in its rules. This action is in response to the growing demand from customers and merchants interested in employing contactless, cashless payment technology.
According to contactless payment suppliers, expanded target markets include general merchandise retailers, merchants offering self-checkout, home improvement stores, quick service restaurants, movie theaters, parking garages and vending machines.