These are devices connected to a POS terminal that allow cardholders to make fast payments, up to a certain amount, with contactless credit cards or prepaid cards by tapping them on the contactless reader instead of using the POS's card reader.
Can a contactless reader be attached to every POS?
No. The POS must be suitable for attaching a contactless reader.
Can a POS device only perform contactless transactions thanks to a contactless reader?
No. Newer POS models generally have built-in functions that can handle contactless transactions. For this reason, contactless transactions can be carried out without attaching an extra device.
Is a contactless reader reliable?
A contactless reader is reliable because it is manufactured with the necessary security measures required by PCI DSS standards.
From external reader to internal reader
When contactless payments first became widespread, many POS devices did not have contactless reading capability. For this reason, external contactless readers were attached to existing POS devices to provide support for contactless transactions. Today, almost all new POS models have the contactless reader built into the device itself.
The security of the contactless reader
The security of contactless readers is provided across several layers:
- Communication between the reader and the card only works within a distance of a few centimeters.
- The cryptogram generated by the card for each transaction prevents copied data from being reused.
- Devices into which a PIN is entered must be certified according to the PCI PTS standard.
Payment with a phone or smartwatch
Contactless readers are used not only with contactless cards but also for payments made with NFC-enabled phones and smartwatches. From the reader's perspective, a payment made with a phone is processed in the same way as a payment made with a contactless card.
The phone turning into a POS
In recent years, NFC-enabled phones themselves can also be used as contactless readers. In this method, called SoftPOS, a merchant can accept contactless cards through their phone without needing any additional hardware.
