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Contactless or “touch to pay” payment cards, as we call them, are cards that communicate with a point of sale terminal using wireless technology. The push towards a cashless economy has been ongoing for a long time. While people share their concerns about money bills that aid in the spread of the coronavirus, most banks in Ghana have begun to adopt contactless cards as an alternative means of transactions.
Since late last year, banks such as Guaranty Trust Bank (GT Bank), Absa, Fidelity, ADB, among others, began to adopt contactless cards in their mode of operation, but other banks have not yet done so.
How contactless cards work
A contactless card is a fast, easy and secure way to make digital payments. A customer has to go to the point of sale (PoS) terminal or ATM and touch the contactless card to initiate payment. Customers do not have to swipe or insert their contactless cards. There is a built-in antenna inside the PoS or contactless ATM that makes a connection to the terminal. An illuminated beep will indicate whether or not the transaction has been processed.
Also read: COVID-19: a surprise catalyst in driving a cashless economy and society
The limit for a contactless transaction varies from bank to bank. The limit for a contactless transaction at GTBank, for example, is Gh ¢ 50 per touch. This means that if you have to pay a Gh ¢ 200.00 invoice, you will have to touch the PoS terminal 4 times. Alternatively, you must insert your contactless card into the PoS terminal and enter your pin if you have to make a payment of more than Gh ¢ 50.
In a recent MasterCard post, Blake Rosenthal, Executive Vice President and Chief MasterCard Acceptance Solutions said: “Contactless offers consumers a safer and cleaner form of payment, speed at checkout and more control over physical proximity in this critical moment”.
Contactless transactions are highly secured because they only work when placed at a distance of four centimeters near the activated terminal, always putting the customer in control of their transactions. A pin is not required for small purchases. However, if a customer makes payment with a smartphone, a four-digit verification code or biometric data will be required.
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