Contactless payments are becoming increasingly popular among today’s consumers. Without needing to exchange money physically, shoppers and event attendees can minimize hassle for a smooth and streamlined purchasing experience. From credit and debit cards to digital wallet payments, QR codes, and cryptocurrency, there now are more options than ever for making cashless and contactless payments. Of course, the speed and convenience benefit merchants too, making the entire transaction more efficient and enjoyable for everyone involved.
As with any financial transaction, however, contactless payment processing isn’t without inherent risks. The good news is that there are ways to mitigate them with a proactive approach. Here’s what all businesses should know about security best practices for contactless payment processing.
Both consumers and businesses alike share some concerns about using contactless payments. A number of security issues have emerged as digital payments have risen in popularity, including:
On the consumer side, these events can present a headache at best. While some financial losses can be recovered if the individual had protection in place through their credit card or financial institution, filing a formal report and waiting for funds to be replenished can be a drawn-out process.
For businesses, experiencing any type of data breach can have a devastating effect. When data privacy is sacrificed, consumers lose confidence in a business and may discontinue any future purchases. Some companies may even face fines and penalties for data breaches. Combined with reputational damage, these costs may be too vast to recover from.
Data security remains a concern for virtually all businesses and consumers today. The good news is that following some simple practices greatly lessens the risk of security breaches. While consumers should remain vigilant about evolving threats to their personal data, including the use of fake email addresses and accounts used during phishing schemes, businesses that prioritize their data security add an extra layer of safety for their customers’ sensitive information. Here are some ways to promote security for contactless payment processing.
Work closely with your IT team to ensure you’ve implemented security measures to strengthen the safety of your network. Servers, firewalls, and other solutions can help protect sensitive business and customer data. There are other tools to enhance the security of your network, devices, and any apps or other software you use. These preventive solutions include data encryption and fraud detection systems that flag potential issues so you can respond quickly.
Nearly all businesses that process payments are subject to the Payment Card Industry Data Security Standards (PCI DSS). This comprehensive legal framework outlines best practices to promote consumer safety and minimize the risk of security breaches while performing credit card transactions and storing consumer data. Familiarize yourself with applicable regulations and perform a self-audit to ensure your business is fully compliant.
Minimize the risk of card skimming and other types of tampering by securing any devices used for contactless payment processing. Inspect them regularly for any extra or missing parts and store spare assets in a secure location.
A final but important way to keep your data secure during contactless payment processing is to make sure your associates are trained and knowledgeable on all data security practices your business implements. From choosing strong passwords to never leaving payment processing devices unattended, your company should have comprehensive processes and procedures to protect its data. In addition to training employees in these practices during onboarding, be sure to follow up with refreshers at routine intervals to keep data security top-of-mind for all associates.
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If you’re seeking a simple and secure solution for contactless payment processing at your event or entertainment venue, turn to Billfold. Our cashless and contactless POS supports a wide range of payment options and leverages solutions like credential fraud protection. Keep your business and customers secure while streamlining your payment and inventory management procedures.
