It has been on the headlines that Visa Inc. moved to contactless payment cards. However, sources reveal that a core competitor (Mastercard) has now jumped into the bandwagon. One can now secure high risk merchant accounts from this deal.
The CEO and president of Mastercard Inc. stated that contactless was taking shape in the United States. The Mastercard also added that they have already got the dedication from those issuing – which is around seventy-five percent of the total United States population.
The issuers including HSBC, KeyBank, Citibank, Santander, and Capital One had a meeting in which they resolved that they would carefully look into their 2018 results. Banga also said that they were trying to collaborate with leading experts like Fidelity National Information Services Inc. to incorporate contactless to not widely known bank issuers and maybe to credit unions if there is the need to.
It still remains unclear as to how many cards will be involved in the deal. There are a total of 446 million Mastercards – 231 million being credit cards while the 216 being debit cards. This is according to the fourth-quarter report. Sadly, no further details were given by a Mastercard spokesperson.
On the other hand, Visa Inc. has already made a big move by announcing that it will need 100 million cards to have the contactless feature. They also revealed that they wanted their preferred issuer JPMorgan Chase and Co. to proceed with the project. There are also other big Visa issuers like Wells Fargo and Co, American Express Co. and the Bank of American Corp. but they were not Visa Inc’s favorites this time.
Now, it’s no more secret why people are falling in love with the contactless cards. In the past, there were delays, but not anymore with contactless cards. With contactless cards, there are fast transactions, it has helped reduced costs, and it has also covered people from different locations – so you don’t have to be at a specific location.
Besides, there has emerged point-of-sale terminals that have been installed so that they can accept EMV chip payment – which is usually because of the capability to process contactless payments using near-field comm technology, though the NFC features haven’t been enabled yet.
In a nutshell, over half of the United States card transactions are contactless-enabled. It’s also reported that big merchants like CVS and Target will start accepting contactless very soon.
With the technological advancements, the experts now hope that the future contactless cards will consist of dual interface cards. Dual-interface cards allow EMV transactions by inserting the chip card into the terminal. Besides, NFC-enabled chip cards can be tapped or even passed near the machine.
Author Bio: Electronic payments expert Blair Thomas is the co-founder of high risk payment processing company eMerchantBroker. He’s just as passionate about his business as he is with traveling and spending time with his dog Cooper.