Why Every Small Business Should Consider Contactless Payments Through Their Point of Sale

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By the end of this year, 6 out of 10 in-store transactions in the United States are expected to be contactless payments. Customers have a number of options for transacting, including contactless payment and mobile wallets. If you haven’t yet made contactless payments the norm in your small business, you may want to consider switching to this solution. Here are three good reasons.

1. Contactless payments are more secure

Some people still believe that it is easy to hack a contactless payment. Nothing could be further from the truth. In fact, it’s easier for a thief to steal a customer’s physical card than it is to hack a contactless payment system.

One reason is EMV chips. EMV chips are embedded in the majority of credit cards in the United States and represent a built-in security that makes it much more difficult to copy and store card information. To put this into perspective, between 2015 and 2018, chip cards reduced counterfeit payment fraud by 76%.

2. The cost of a POS system doesn’t have to break the bank

As a business owner, you may already have an existing point-of-sale system equipped to accept contactless payments, even if you’ve never used this feature. If you don’t have a point-of-sale system, the upfront costs may seem daunting, but it’s a one-time investment in your business (and a business expense). If you shop around, you should be able to purchase the point-of-sale equipment you need for less than $1,000.

There are several ways to pay for POS hardware and processing fees. They understand:

• Initial purchase: Older, more established POS providers often allow you to pay upfront for the hardware, software, and installation you need. If you choose this route, your upfront costs will be higher, but your monthly expenses will be lower. Whether you have a brick-and-mortar business or an online store, lower monthly expenses can make it easier to stick to your operating budget.

• Subscription: With a subscription pricing model, you pay a monthly fee for the features you want in a POS system and a specific level of customer support. Start-up costs are low, but monthly bills can be high, especially if you have a complex business operation.

• Pay for use: As the name suggests, with pay-as-you-go, you only pay when a transaction is made. For example, Square charges between 2.5% and 3.5% of each transaction. So if a customer makes a $100 purchase, you’ll pay Square between $2.50 and $3.50. If your business doesn’t make a lot of sales, this may be an option for you.

The fact is, doing your research can help you determine the most cost-effective way to introduce contactless payment into your business through a point-of-sale system.

3. Lack of contactless payments could put off customers

Consumers like to control how they pay for their purchases. The more payment options you offer, the greater the chance that your customers will find the payment type they prefer. Whether someone wants to touch, dip, swipe, or pay with cash, they are more likely to return to your business if they can pay in a way that suits them.

Considering all the tasks you continue to do as a small business owner, the idea of ​​introducing a new payment method can seem a little overwhelming. Fortunately, POS providers have sold so many systems since contactless payment was introduced in 2014 that they have learned to guide business owners through the process, step by step. In other words, you are not alone.

If your dream is to grow your business, adding a contactless payment option may be a small step, but it’s an important one.

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