NFC stands for Near Field Communication. Near Field Communication is the technology that enables contactless payments, both using cards and using smartphones.
Whenever a customer pays via a contactless payment using a card machine, NFC is being utilised to facilitate that payment.
So if you want to accept contactless payments from customers using Apple Pay, Google Pay, or just regular credit and debit cards, you need to understand the basics of NFC and how it works (and if you’re still on the fence about whether or not to invest in a contactless payment machine for your business, this post will help you out).
How does NFC work?
NFC works using Radio-Frequency Identification (RFID), a technology that enables communication via radio waves. RFID technology has been around for quite a while (the first RFID patent was filed in 1983), but it’s only in recent years that its use has become more widespread.
As well as being used for NFC contactless payments, RFID is the technology behind supermarket scanners and cattle tagging.
NFC simply utilises a very specific radio frequency (13.56MHz) that works for close-range communication.
So, two devices that utilise NFC will be set up to communicate with each other within that frequency range, and will need to be in very close proximity to each other to do so.
This communication takes place very quickly – often just a couple of seconds – making contactless payment the fastest payment method available.
Is NFC secure?
NFC payments are secure in a number of ways.
First, there’s the fact that the two communication devices have to be within around two inches of each other for the transaction to work.
There’s no way that your card or payment device could be intercepted to make a NFC payment from a greater distance – the technology simply wouldn’t allow it.
If you’re using a smartphone (or smartwatch) to make an NFC payment, there are further levels of security embedded in the transaction.
With Apple Pay for example, none of the customer’s transaction data is stored during a NFC transaction and the transaction has to be initiated with the user’s authorisation via face ID, fingerprint or passcode.
The main security risk around NFC payments related to the fact that the technology relies on a wireless signal to accept payments.
While it is possible to hack into sensitive merchant information stored in the terminal via an unsecured wireless connection, these types of attacks are very difficult to carry out in practice.
Overall, NFC payment technology offers one of the most secure methods of payment available.
How do you accept NFC payments?
As a merchant, you don’t need to worry about ‘accepting NFC payments’ as such, though it’s a question that’s often asked.
Instead, you can just think of ‘NFC payments’ as ‘contactless payments’ – because in effect that’s what they are.
If you’re wondering whether or not it’s worth beginning to accept contactless payments from your customers, you can read a full overview of the benefits to merchants here.
Basically though, NFC payments (contactless payments) are generally thought of as the future of payment technology – the industry has shown consistent expansion and that growth shows no signs of slowing down.
Customers prefer NFC contactless payments because they’re convenient, secure, fast and hygienic. And for business owners contactless payments offer increased revenue, more reliable accounting, and less HMRC enquiries.
Hopefully this article has helped you to understand what NFC is and how it works. If you’d like to learn more about how your business can benefit from making the switch, we’d love to hear from you.
You can get in touch here – we offer some of the most competitive processing fees in Europe and if we can’t beat your current deal we’ll give you a £250 Amazon voucher.
