Buzz
As we adapt to the 'new normal' of shopping during the coronavirus pandemic, you've likely noticed businesses promoting contactless payment methods.
In many stores and restaurants, this means paying online before picking up your order at a curbside or a designated spot where you don’t need to hand over anything to the employee.
Contactless payments also refer to in-person transactions where you can pay without needing to insert your card into a terminal or hand it over to the cashier. This method has seen a huge surge in popularity as our activities have been limited due to the coronavirus outbreak.
According to Mastercard, contactless transactions saw a global growth of over 40% in the first quarter of the year.
Furthermore, contactless transactions for grocery and drugstore purchases grew at twice the rate of non-contactless payments—some of the few places many of us have shopped in person recently—based on a survey by the payment network from February and March.
Contactless payments can be made using a debit or credit card, but can also be linked to your financial accounts through other methods such as a key fob, smartwatch, or a mobile wallet on your phone.
Nearly 80% of global survey respondents reported using contactless payments, with safety and cleanliness being the primary reasons for preferring this method over others.
So, what should you keep in mind before heading out to shop?
Check your wallet
Start by identifying your contactless payment options. If you’re already using a mobile wallet like Apple Pay or Google Pay, you’re likely ready to use your phone for contactless payments from the linked accounts.
For those using a physical card, check both sides for a symbol resembling a sideways WiFi icon. This indicates that your card supports contactless payments.
Check for spending limits
Your contactless card shares the same spending limits as the linked account, though there might be some restrictions on the maximum amount for a transaction.
Certain card issuers and payment networks impose thresholds that allow you to make contactless payments only for smaller purchases. For example, if you’re using Apple Pay for a transaction over $50, you will need to sign to authorize it.
Since you typically don’t need to sign for a credit or debit transaction under $25, that is likely the limit for your contactless payments. (Mastercard’s survey indicated that 80% of contactless transactions are for purchases under $25.)
For amounts beyond that, you can spend as much as you like, but you will be required to sign either on the receipt or directly on the payment terminal screen.
However, check your card’s specific rules for the exact limit—and don't be surprised if it changes over time.
In Great Britain, the contactless limit has increased from $30 to $45 GBP to support physical distancing measures, while in Canada, the cap has been raised from $100 CAD to $250 CAD.
Follow the prompts at the checkout
If it’s your first time making a contactless payment, look for the sideways WiFi symbol on the payment terminal—but businesses will likely make it clear they accept contactless payments.
Though often called “tap to pay,” remember that your card or mobile device doesn’t need to physically touch the payment terminal—it only needs to be close, just an inch or two above it.
And it's incredibly quick—much faster than waiting for a chip card transaction to authorize. So keep your eyes on the register and be prepared to move on once your payment goes through.
Have you noticed more businesses offering contactless payment options since physical distancing measures began? Share your thoughts and experiences with us in the comments.
This post was updated on 5/7/2020 to clarify that contactless payment limits are about waiving the signature requirement for purchases, not limiting the amount you can spend.
