Pay Wave Contactless Payments for a Smarter Life

Using Pay Wave is as simple as tapping your card on a terminal, but did you know it's also more secure than traditional credit card transactions?

Pay Wave uses tokenization to replace sensitive card information with a unique token, reducing the risk of card skimming and data breaches. This technology is built into the payment system, so you don't need to take any extra steps to stay safe.

With Pay Wave, you can make payments up to $100 without a PIN, making it a convenient option for small purchases.

PayWave is a form of Near Field Communication, or NFC, provided by Visa. It allows cardholders to transmit card payments without contact simply by being within close range of a store's checkout terminal.

To use PayWave, customers tap or wave their card within 1-2 inches of the checkout terminal, and once they get payment confirmation, they're good to go. This technology is secure and convenient for consumers.

PayWave is the name of the contactless payment solution from Visa, and it's become the colloquial name for contactless payments in New Zealand. The feature is a secure way for consumers to buy products or services using a contactless debit card, credit card, or device like a smartphone or watch.

PayWave is a form of Near Field Communication, or NFC, provided by Visa.

It allows cardholders to transmit payments without contact by being within close range of a store's checkout terminal.

Just tap (or wave) your card within 1-2 inches of the checkout terminal, and you'll get payment confirmation.

By using PayWave, you can avoid the hassle of digging for cash or swiping a card.

Studies show that businesses that accept PayWave experience at least double the growth rates in sales, transactions, and returning customers compared to those that don't.

This means that by offering PayWave, businesses can attract and retain more customers.

Accepting PayWave is easy if you already accept EFTPOS payments, and you can activate it with your merchant bank first.

Pay is a straightforward process with payWave. You can identify payWave by the contactless symbol shown as a wave-like image on the front of your card.

Payments are made by waving or hovering the contactless card or device over the payment terminal, with no need to sign receipts or touch buttons.

Customers don't even need to enter a PIN for purchases under $200.

Visa payWave's contactless payment technology lets users pay with just a wave of their card or device. This is made possible by Near Field Communication (NFC), which allows devices to connect when they are less than 40mm apart.

The NFC technology enables your terminal and your customer's card or device to 'talk' to each other about the payment details. This is a key difference between contactless payments and EFTPOS transactions.

Contactless transactions like payWave are processed by "card schemes" like Visa or Mastercard, which is also the case for credit card transactions and mobile wallet payments such as Google Pay and Apple Pay.

These transactions incur additional fees to accept, known as the Merchant Service Fees (MSF). This is what the acquirer charges your business to accept and process a contactless payment.

Here are the two ways to start accepting Visa payWave transactions:

Using payWave can save you time and hassle, especially when making small purchases. No signature is required for most transactions under £30, making it even more convenient.

The benefits of payWave extend beyond convenience, though. Customers tend to spend more when using credit cards, with an average purchase of £50 compared to £12 for cash transactions.

One of the most significant advantages of payWave is its speed. It can help move checkout queues more quickly, and employees handle less cash, leading to potential savings.

Here are some key benefits of using payWave:

As payWave is just as secure as traditional Visa payment products, you can trust that your transactions are protected.

Contactless payments like Visa payWave are extremely secure, providing multiple layers of protection against fraudulent or unauthorized transactions.

Your Visa payWave card doesn't have to leave your hand at all during the transaction, giving you complete control of your card at all times.

Contactless cards have a one-time-only cryptographic code for every transaction, enabling tracking of all transactions and making it less vulnerable to card skimming.

Here are some key security features of contactless payment technology:

This is a significant improvement over older technology, which often lacks encryption techniques.

Visa payWave-enabled cards provide multiple layers of security to protect you from fraudulent or unauthorized transactions.

One transaction at a time is processed by Visa payWave terminals, eliminating the risk of doubling up on payments.

Your Visa payWave card doesn't have to leave your hand during the transaction, giving you complete control of your card at all times.

Contactless payment technology has multiple layers of security and encryption to keep transactions safe. These measures ensure customers can't make an unintentional payment, and miscreants can't easily access card details.

Contactless cards never leave a customer's hand, making them less vulnerable to card skimming. This is a key advantage in keeping transactions secure.

Every contactless transaction has a one-time-only cryptographic code, enabling tracking of all transactions. This helps prevent unauthorized or fraudulent transactions.

Contactless payments are designed for proximity only, making it nearly impossible for a thief to scan the card while the terminal reads it. This adds an extra layer of security to the transaction.

Purchases over $200 require a PIN to complete contactless transactions, adding an extra level of security for higher-value transactions.

Zero liability fraud protection provided by card issuing schemes protects both customers and merchants from unauthorized or fraudulent transactions. This gives customers peace of mind when using contactless payments.

Some of the key security features of contactless payment technology include:

You can start accepting Visa payWave transactions by installing integrated terminals with a Visa-enabled payWave reader or adding a peripheral Visa-enabled reader to your existing POS terminal.

Contactless payments are easy, convenient, and quick, allowing you to be up to date on the latest in credit card technology and security.

payWave works by using Near Field Communication (NFC) technology, which allows your terminal and your customer's card or device to 'talk' to each other about the payment details when they are less than 40mm apart.

To accept payWave payments, you'll need to activate this with your merchant bank first and ensure your EFTPOS terminal is able to accept contactless payments.

Businesses that accept payWave experience at least double the growth rates in sales, transactions, and returning customers, making it a no-brainer to offer the payment methods your customers prefer.

Here are the two ways to start accepting Visa payWave transactions:

With payWave, users can wave to pay using their card or device within 2.5-5 cm (1-2 in) of the reader to make payments, and transactions can take less than a second.

You'll likely be charged 0.7% to 1.0% if you're on Interchange plus (unblended) rates with your bank to accept payWave in NZ.

Banks offer MSF packages that include blended, unbundled, or fixed rates, which cover services like handling costs and risks associated with processing payments.

The amount you'll pay depends on the nature of your business, the volume of transactions, and the MSF package you negotiate with your acquirer.

Surcharging can be a way to offset these fees by passing them on to your customers, making payWave a zero-cost payment method if done correctly.

You'll likely be charged between 0.7% to 1.0% if you're on Interchange plus (unblended) rates with your bank to accept payWave in NZ.

Banks offer MSF packages with different rate structures, including blended, unbundled, or fixed rates, which consist of interchange fees and acquiring fees.

These fees cover services like handling costs and risks associated with processing payments, such as fraudulent transactions and bad debt.

The amount you'll pay depends on the nature of your business, the volume of transactions, and the MSF package you negotiate with your acquirer.

Some merchants find that the increase in business generated by providing payWave transactions offsets the additional merchant fees.

You can pass on the cost of acceptance to your customers by adding a small surcharge, effectively making payWave a zero-cost payment method.

Surcharging can also be configured for credit cards if you choose to accept those as well.

As a merchant, you have obligations towards your customers when surcharging, including allowing them to assess if they'd like to pay via an alternate payment method or accept the surcharge.

The NZ Data Limit is a key consideration for anyone using contactless payments in New Zealand. The current payWave limit in NZ is $200.

For transactions exceeding $200, you'll need to enter your PIN for processing. This is a security measure to ensure your account is protected.

The payWave limit was increased from $80 in April 2020 to help merchants comply with health regulations. This change led to a surge in contactless payments as both merchants and customers benefited from a more convenient checkout experience.

As a result, you'll often see contactless payment options available at checkout counters.

The future of contactless payments is looking bright, especially with New Zealand's recent legislation changes. The Commerce Commission now regulates merchant service fees under the Retail Payment System Bill, which received assent in May 2022 and is being implemented from November 2022.

This regulation is expected to increase contactless payment availability in NZ significantly, making it easier for retailers to accept them. With nearly 8 out of 10 people globally now using contactless payments, retailers can expect to feel more pressure to adapt.

Surcharging will also be regulated as part of the Retail Payment System Act 2022, giving consumers more protection and control over their payments. This is a major step forward for contactless payments in New Zealand.

The Retail Payment System Bill aims to reduce the Interchange fee, the largest component of the Merchant Service Fee (MSF), which is charged by card issuers. This reduction is expected to make contactless payments more accessible and convenient for consumers.

The growing preference for contactless payments among New Zealanders is undeniable, with nearly 8 out of 10 people globally now using contactless payments.