Regardless of the Tap and Go limit set by your EFTPOS service provider, I suggest you consider your own rules to reduce the opportunity of fraud being committed in your business. While there is a slow-down in processing, the delay is minimal and the outcome considerably better.
My suggestion is for transactions above $20.00 you have the card swiped or put in the slot in the device and request the PIN from the customer.
The only delay is in the handling of the card. The rest takes the same time regardless of how you present the card.
With an increase in fraud as a result of tap and Go, this can be your approach to cut fraud, your commitment to protecting your customers. The people who will like this will be those who are fearful of such fraud. You probably see them like I do, the people with their cards in a container to protect mistaken scanning wrapped in Alfoil.
In asking for the card say something like: we have a $20 limit on Tap and Go to help fight against fraud. said with a smile, most customers will agree and appreciate your concern.
I’ve never seen a card wrapped in alfoil? The bank covers you to $100. If a coffee shop can accept a phone tap payment from someone’s back pocket (tv advert), why can’t a newsagent accept tap & go from customers that want this service.
Judy they can, anyone can. It’s when I saw several fraudulent transactions in quick succession that ( started to wonder about the rules I have suggested here.
I’ve seen Alfoil several times. I’d like visit their homes.
Sure some people will be OK with this but what happens when I pay with Apple Pay?
I don’t carry a physical card for accounts with Apple Pay now, and it will only ask for a PIN over $100.
When you put a debit card in I assume you hope people will select savings instead of it going through the credit function when it’s paywave?
All you’re doing is putting up barriers for your customers. You’re turning a quick 2 second tap into a 15-20 second swipe and PIN transaction to avoid fraud (although I suspect this is more about reducing bank and merchant charges on small purchases).
Neil, first up I am doing nothing if you re-read the post. The time difference between the two approaches is less than 10 seconds. My suggestion has nothing to do with fees.
I’ll take your word on that, but given how many newsagent/convenience stores have a sign up about paying by card with rules on minimums $, exclusions on certain purchases etc it would be something to consider.
Back to Apple Pay – what’s the solution when there’s no physical card? Ask them for cash? Make them an exception to the $20 rule? Apple Pay requires touch ID so it’s the best option available at the moment.
Putting a $20 limit on contactless stops someone using a card fraudulently on that transaction, but they’ll just go next door anyway (like I do when I run into these policies).
Preventing fraud starts with physical card security.
Anyone who is serious about protecting their card will be minimising the times they reveal the physical card (which has card number, name, expiry, CVV/CVC) as that’s where most fraud comes from.
Using contactless (with it’s more than adequate existing security measures) for all day to day transactions is the best way to manage the source of the problem. A $20 limit just moves the transaction to the next shop while increasing the risk of fraud by requiring the physical card to be used.
Sorry, but it’s terrible advice from a fraud and security point of view.
Nice of you to take my word Neil. Before writing the advice I spoke to several people in the payments space and many retailers who have been targeted. While not for everyone, it will help some achieve greater piece of mind.
None of the advice here is mandated. It is put out there for people to decide for themselves.
Like Neil if I was present with a limit other then that set by the bank for my tap and go purchases I would shop else where. Seems like a small minded small business limitation that would only make consumer favour the big guys who don’t have such scrupulous rules.
Peace of mind at the cost of turning away customers and not protecting them from anything.
Can’t see anyway the outcome of this is considerably better, it’s just a barrier.
customers are smiling when they can paywave
I have disabled pay wave on my eftpos after having too many people want to spend $99 on scratchies and never have a pin for their card, that makes it hard to believe it isn’t stolen. We haven’t had any complaints from customers and they still shop with us.
@Jessica so what happens when someone comes in and wants to pay with Apple Pay / Android Pay using their phone?
Neil, you tell them to go get cash, or bugger off. Some customers are just toooo precious!
I didn’t think any retail small businesses could afford the luxury of turning away customers and living in the dark ages…
This is relatively new technology so by not embracing it at the present time is hardly dark ages.
This technology has proven to increase fraud and the cost of fees to small business vastly outweighs the loss of a couple of customers.
Supermarkets can do deals with banks but small business can’t.
If the fees were the same as using a pin then fine, but a business decision that increases cost dramatically is not a good business decision full stop.
Apple Pay requires a fingerprint on the phone before it can be used.. In no way is it increasing fraud, quite the opposite.
Contactless payment is a basic expectation of customers, unless your demographic is 50 year olds who like cheques and cash.