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How to Choose Between NFC and EMV Payments? - Beyond Bancard

How to Choose Between NFC and EMV Payments?

When deciding between NFC (Near Field Communication) and EMV (Europay, MasterCard, and Visa) payments for your business, it’s crucial to understand the technology, customer preferences, security features, and the financial implications of each in-person payment processing system.

What are the key differences between NFC and EMV payments?

When looking for a credit card merchant service provider, there are many considerations. Here’s a comprehensive guide to making an informed choice.

NFC Technology: NFC enables contactless communication between devices like smartphones and payment terminals. Customers can make payments by simply tapping their device near the payment reader. In an article for Men’s Talk, it was reported that NFC is teetering due to lack of security measures but with proper measures intact, it doesn’t have to.

EMV Technology: EMV is a standard for smart card payments and terminals, primarily chip-based credit and debit cards. Users must insert or swipe their card and sometimes enter a PIN to complete the transaction. A credit card merchant service provider will train you on all the details of use.

Factors to Consider

Security: EMV cards are considered highly secure due to their chip technology that generates a unique transaction code each time it’s used, making it difficult to clone. NFC also offers strong security with encryption and tokenization, which substitutes sensitive data with non-sensitive equivalents.

Speed and Convenience: NFC transactions are typically faster, requiring only a tap to pay, which can lead to shorter lines and a more streamlined checkout process. EMV transactions take a bit longer due to the need to insert the card and possibly enter a PIN.

Customer Preferences: Understand your customers’ preferences and behaviors. Younger demographics might prefer the ease of NFC payments through their smartphones, while others might lean towards the familiarity of chip-and-PIN transactions.

Adoption Rates: NFC requires customers to have a compatible smartphone and a linked payment method, which might not be as widespread among all customer segments. EMV chip cards have been widely adopted in many countries, with many consumers already carrying these cards.

Cost of Implementation: Analyzing the cost is critical. NFC payment readers might be more expensive than

Adoption Rates: NFC requires customers to have a compatible smartphone and a linked payment method, which might not be as widespread among all customer segments. EMV chip cards have been widely adopted in many countries, with many consumers already carrying these cards.

Cost of Implementation: Analyzing the cost is critical. NFC payment readers might be more expensive than EMV terminals. However, investing in NFC could future-proof your business as digital wallet usage increases.

Integration with Loyalty Programs: NFC allows for seamless integration with mobile loyalty programs and marketing campaigns. If customer engagement through these channels is a priority, NFC might be the better choice.

Geographical Considerations: Different markets have different preferences and standards. For instance, EMV is the standard in Europe, while NFC is growing rapidly in markets like Asia.

Regulatory Compliance: Ensure that any payment system you choose complies with the payment card industry data security standard (PCI DSS) and other local regulations.

Merchant Services and Fees: Evaluate the fees associated with each payment method, as transaction costs can vary. Also, consider the terms and services provided by payment processors and how they integrate with your current systems.

Making the Decision

To decide which technology suits your business best, assess the following:

Analyze Your Customer Base: Who are they and what is their preferred method of payment? Gather data on your customers’ payment preferences either through direct surveys or by analyzing transaction histories.

Evaluate Your Transaction Volume and Value: High-value transactions may lean towards the perceived security of EMV, while high-volume, lower-value transactions may benefit from the speed of NFC.

Consider Your Business Model: If your business is mobile or participates in events, NFC payments via mobile devices can be more convenient. For brick-and-mortar stores with a fixed checkout, EMV might be more practical.

Look at Industry Trends: What are your competitors doing? Staying aligned with industry practices can be important for not falling behind.

Plan for the Future: Payment technologies evolve, and so should your business. Invest in a system that can adapt to future changes in payment technologies.

Technical Support and Service: Whichever system you choose, ensure you have access to reliable technical support. Payment systems are critical and need to always run smoothly.

Which factors should I consider when choosing between NFC and EMV payment methods?

There’s no one-size-fits-all answer to whether NFC or EMV payments are better for your business. The decision should be based on a thorough understanding of your specific business needs, customer preferences, and the economic and security implications of each payment method. It may also be worth considering a dual-capability terminal that accepts both NFC and EMV payments, offering flexibility to your customers and preparing your business for both current and future payment trends.

Best In-Person Payment Processing Provider

Are you searching for an in-person payment processing provider? If so, you have come to the right place. Search no further than Beyond Bancard, a premium credit card merchant service provider. With top-notch on the go processing support to ensure your transactions are speedy and safe, you’re in the best of hands with Beyond Bancard. Call today and see what we can do for you in the way of on the go processing solutions – (844) 365-3050.

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