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P R E P A R E D B Y E F T P O S N Z CONTENTS TABLE OF CONTENTS

Contactless Payments: The New Best Frequently Asked Questions 1 Practice in Payment Solutions 21

New Zealand Case Studies How to Get Started Using 6 24 Contactless Payments

14 Contactless Payments & COVID-19 PAGE 1 CONTACTLESS PAYMENTS

The New Best Practice in Payment Solutions

Introduction

Since contactless cards emerged on the than now. But we also understand that it’s a payments scene back in 2011 (we can’t business decision that you’ll want to make believe it’s been that long either!), customers with all of the most up-to-date and and merchants alike have been enjoying the informative data in mind. many benefits that go hand in hand with the convenience of "Tap & Go" payments. As a merchant, you want to know that you’re getting ‘bang for your buck’ when you invest Despite the undeniable growth in contactless in contactless payments. That’s why we’ve put payments since they were first launched, together this guide, covering: many Kiwi merchants are uncertain about the value that contactless payments bring to both The benefits of contactless payments for the customer and their business. your customers The benefits of contactless payments for The COVID-19 pandemic has seen many you, the business owner businesses adapt their current payment Any concerns or misconceptions solutions to follow Government guidelines to surrounding the true value of contactless keep their valued customers safe, payments and returning. The latest data around the increase in contactless payments through COVID-19 If you’re considering whether contactless Insights from our 2019 dataset around payments are right for your business, we can regional contactless transaction growth confidently say there really is no better time FAQs you might have, so you can make the most informed decision

If you reach the end of this thought provoking whitepaper and feel like it might be time to make the , we’ll take you through the steps on how to get contactless payments enabled on your terminal, too. PAGE 2

Why do Kiwis prefer contactless payments?

As a nation, we pride ourselves on being early cards altogether. Customers are always adopters of EFTPOS payments. looking for ways to streamline their payments New Zealanders are accustomed to paying and make the shopping experience as easy for everything with their debit or , and effortless as possible. from a cup of coffee to big-ticket items. It’s easy to get by without carrying cash here, With contactless, the process is reduced from as almost all merchants accept EFTPOS. a five or six touch experience (account selection, PIN code and enter button) to a Contactless, or Tap & Go payments are an one-hover movement, and in some cases, you evolution of EFTPOS payments - aiming to don’t even need to have a card at all. make card payments even faster and more convenient. Cardholders have welcomed the Faster Payments technology. According to research by Customers love the speed of contactless Mastercard, 73% of New Zealanders use the payments. Tap & Go to make a payment. With contactless payments, there is no need So what are the key benefits driving this shift to swipe or insert a card at the terminal and in preference from traditional ‘swipe and for payments under $80, cardholders don’t enter ’ payments to contactless? even need to enter their PIN (this was recently increased to $200 through COVID-19, but Convenience more on that later!). This speeds up the The convenience of making a payment with a payment considerably. simple tap of a card is seriously attractive to cardholders. It’s actually to some extent becoming second nature to customers. Not only that, with the advent of mobile payment wallets like Google Pay and , smartphone customers are ditching their PAGE 3

Think about it; we’re all familiar with reaching Furthermore, most or Visas have out our car window as we turn the corner of a a ‘zero liability’ protection clause, which drive-thru, or tapping our card on an EFTPOS means that your credit card issuer or financial terminal while we continue our conversation institution won’t hold you accountable or with a workmate while ordering coffee. charge you for money spent fraudulently or illegally on your card, and will reimburse you It’s so fast and instinctual, that when a ‘no- for any charges made on your card. You can payWave accepted’ sticker on a machine check out their respective policies here: interrupts the flow of payment at a counter, the experience is jarringly inconvenient. Kiwis Visa Zero Liability Policy value speed at the counter and Tap & Go Mastercard Zero Liability Policy enables that. Most banks also offer sophisticated fraud Security monitoring systems on your accounts and will identify any suspicious activity or unusual There can be a misconception that spending and contact you immediately for contactless cards are less secure than your added protection. regular EFTPOS cards.

If cardholders choose to use Google Pay or Actually, contactless payments are Apple Pay on their smartphones they also just as, if not more secure than regular have the added security of authorising the card payments. payment with their fingerprint or Passcode. , with a purchase limit, the damage that With contactless payments, the card never a thief can do in a single transaction can leaves the customer's hand which reduces be mitigated. the cardholders risk of ‘card skimming’ theft.

Contactless cards also have updated security What's in it for you, the merchant? features compared to older cards, for The general benefits for customers using example, the cards are specifically designed make sense; New to prevent cloning - a method used by Zealanders value speed, convenience and fraudsters to steal card details. ease when choosing where to shop and how they pay. But what’s in it for you, the merchant? PAGE 4

Despite a rising demand among cardholders, Customer Satisfaction New Zealand merchants still seem to be Happy customers are the best advocates of resisting this global trend, with many any business. choosing not to accept contactless payments. In fact, a 2020 study identified that ‘word of mouth’ leads have an average quality score of 4.18 out of 5, with a 3.98 out 5 likelihood What the studies suggest: of closing. According to a study by TRA (2019), an Auckland-based data analysis company, Put simply, if your customers come to you merchants who offer contactless payments because their friends or family recommended saw a 10.6% increase in sales, while you, you’re extremely likely to make a sale. merchants who do not offer contactless payments only had 4.6% sales growth: That means, if a customer comes to your (See the table below.) business and has the smoothest experience possible at the checkout, with no hiccups or The results from the TRA study also showed jarring experience of using a counterintuitive that contactless payments are particularly payment process as we mentioned earlier, advantageous for hospitality, general retail they’ll leave thinking of you fondly. and grocery sectors. However, there are a few evident advantages to contactless Of course, we acknowledge there is more to payments for merchants, beyond what the making customers happy than just allowing TRA study suggests. them to make contactless payments, but offering customers their preferred method of payment does significantly contribute to customer satisfaction.

Results from a TRA study (2019) on the advantages of contactless payments PAGE 5

Growth in Revenue The speed and convenience of contactless contactless payments, it is likely that Tap & payments can help merchants generate more Go will become the norm. As mentioned revenue compared to other payment above, now is a better time than ever to methods. If your business is prone to future-proof your business in advance by experiencing queues forming at peak times, enabling contactless payments on or customers leaving due to people in front of your terminals. them ‘taking too long’, the contactless payment experience might prove to be a Competitive Advantage saving grace for your business. Whether it is sales or customer retention, contactless merchants perform better In our recent study analysing the value of compared to non-contactless merchants. contactless payments in New Zealand between January to mid-September 2019, we As mentioned above, contactless merchants found that the average percentage of experience more than twice the customer revenue attributed to contactless payments in growth than non-contactless merchants. New Zealand was 24.11%. A pretty impressive bump in revenue that many businesses are If you’re the business owner with the fast- beginning to harness the potential value of. moving line, smooth checkout experience and have the evolving forms of contactless Upgraded for the Future payments enabled for your customers, you’ll naturally have the competitive of Payments advantage over the average merchant Keeping the current contactless trend in mind without these features. and the recent developments as a result of COVID-19 and the increasing demand for PAGE 6 NEW ZEALAND CASE STUDIES

Case Studies Our Contactless Hotspots While the value of contactless payments goes Another common misconception merchants without saying (convenience, speed and face while making the decision to go ), we don’t expect you to just take our contactless, is whether they need to adopt a word for it when it comes to the business contactless payment solution when their case for enabling contactless payments. neighbouring business might not be.

We took it upon ourselves to analyse all The map below depicts the top six regions in payments made on the Verifone Network via New Zealand where contactless payments contactless, and non-contactless payments in contributed a significant portion of revenue all geographical regions across New Zealand to retailers in the area, according to our between January 2019 and 18th May 2020. latest data analysis.

Through observing the volume and value of contactless transactions by geographical area, we were able to uncover some pretty stellar insights into the bottom-line value of Tap & Go terminals in New Zealand.

Keep reading for our NZ contactless hotspot map, followed by three unique case studies from across the country. PAGE 7

When you look at a snapshot of New Between January 2019 and 18th May 2020, Zealand’s contactless payments, it’s quite Sunnynook alone made a staggering clear to see that no matter where you are on $14,085,201.35 in revenue generated the map, it’s likely that in fact, your neighbour exclusively through contactless payments is generating a significant portion of revenue (34.08% of total revenue). through contactless payments - so it could be time to overcome the preconceived notions. So, while 34.08% may seem modest at first glance, considering not all retailers have To put the numbers into perspective, we taken advantage of contactless - that’s a can take a deeper look into the Sunnynook huge impact on any given businesses’ suburb, an area in the North Shore of bottom line. Auckland with a population size of approximately 6700 people as a sample.

" Sunnynook alone made a staggering $14,085,201.35 in revenue " generated exclusively through contactless payments (34.08% of total revenue.)

Statistical Notes Contactless transaction as % of total transaction count: Contactless transaction as a % % of total transactions made that are of revenue: attributed to contactless payments Ie. of all % of revenue dollars made that are attributed 100 transactions made, 35% of these are to contactless payments Ie. 35% of $100 total attributed to contactless transactions, and revenue is attributed to contactless 65% are attributed to non-contactless at 35 transactions, and 65% is attributed to non- contactless payments : 65 non- contactless at $35 : $65. contactless payments. PAGE 8

Case Study One: So, what can we learn from the North Shore North Shore, Auckland as a case study of contactless payments in One of the most interesting takeaways from an affluent area? the regional data insights on the hot spot map is the value of contactless payments in Contactless transactions contribute terms of revenue, in more affluent areas significantly to the total revenue gathered of the country. through EFTPOS terminal transactions in affluent areas of New Zealand. These As reported by Stats New Zealand using suburbs highlighted represent significant Census data, the North Shore in Auckland regions of revenue in the North Shore (Devonport - Takapuna) has been identified where contactless transactions are well as having one of the highest median personal represented. incomes in all of the 21 Auckland local board areas. For this reason, it’s of particular Sunnynook collects 34.08% of its total interest that the North Shore also presents revenue from contactless transactions, and itself as an area on the HotSpot map where of all transactions made, a proportionate contactless transactions attributed one of the 38% of these are contactless. This equates highest percentages of contactless revenue to an average non-contactless transaction across the country, at 19.42%. value of $39.89 vs. an average contactless transaction value of $33.89 - not much Within the North Shore area, we were able to difference at all in average transaction further break down suburb-based value at all. transactions in the table below.

Top Performing Contactless Regions by Suburb, in North Shore, Auckland PAGE 9

However, even when the average In short; the percentage of total revenue contactless transaction value is lower, the generated through contactless value of contactless transactions to transactions in affluent areas like the North business is still high. This can be seen well Shore is high, even when the average value in Takapuna, where contactless of the transactions is low. transactions represent around 25% of total revenue, but in contrast, a high 38% You can see in the graph below that while of the total transaction count. contactless payments are still in a growth period and non-contactless payments Here, contactless transactions are "over- make up a higher percentage of total represented" by a higher frequency of revenue, the actual percentage of "lower value" transactions. This could be contactless transactions as a transaction attributed to factors such as an area- count is significant. wide cafe culture of ‘brunches and lunches’, compared to higher transaction value non-contactless shopping in nearby areas.

Historical Revenue by Transaction Type PAGE 10

Case Study Two: proportion of overall revenue was Howick, at Manukau, Auckland 32.35%. Even on the lower side of the spectrum, In contrast to the North Shore, Manukau City Manukau city still presented a significant has been identified by Stats NZ as a less percentage of contactless revenue at 17.38%. affluent area, with the lowest median incomes in the 21 Auckland local board In itself, this fact contradicts the common areas (specifically Mangere, Otahu, Otara misconception that contactless payments are and Papatoetoe). less valuable to businesses in areas of lower affluence, where transaction values might This is particularly of interest in the argument typically be lower or less frequent. Within the for the value of contactless payments to Kiwi Manukau City area, we were able to further businesses, as one of the key areas where break down suburb-based transactions contactless payments contributed to a higher as follows:

Top Performing Contactless Regions by Suburb, in Manukau, Auckland

What can we learn from Manukau City as The notion that less affluent areas will a case study of contactless payments in a find less value in contactless transactions less-affluent area? than areas of high affluence is debunked, with the median percentage of contactless revenue sitting at 26.83% in Botany Downs. That’s a large chunk of income! PAGE 11

What’s particularly interesting here, is that With that said, both regions (North Shore the contactless transactions as a & Manukau) have areas with over 30% percentage of total transaction count is revenue from contactless transactions, relatively high across the board. This showing that contactless transactions are number peaks at 39% in Howick, meaning significant in both areas regardless of that well over one-third of transactions socioeconomic factors. are contactless in this area. This is a huge opportunity for businesses The transaction percentage of in less affluent areas like Manukau to contactless transactions of total invest in contactless payments ahead of transaction count in Howick is also higher the curve, gain a competitive advantage than the percentage of contactless and reap the financial benefits that are revenue, showing us that the average evidently associated with contactless transaction value is slightly lower than payments. You can see these trends other areas such as the North Shore. clearly represented in the graph below.

Historical Revenue by Transaction Type PAGE 12

Case Study Three: NZ Tourism So, what can we learn from the contactless The final areas of interest identified in our payment statistics in the most tourist-centric findings, are some of New Zealand’s most areas of New Zealand? prominent tourism towns: In an area where the economy is Franz Josef significantly fuelled by both international Napier and domestic tourism expenditure, it’s Rotorua particularly important to note that the Queenstown highest percentage of transaction count attributed to contactless payment on the Each of these areas are well-known and New Zealand Hot Spot Map, is regularly frequented by both international Queenstown at 33%. and domestic tourists. For example, Queenstown, Otago is so popular that fourth- Furthermore, on average the percentage quarter 2019 statistics show that there was of transaction count attributed to approximately $436 million in international contactless payments is 29.5%. This visitor expenditure between October - means that for every 100 transactions in December 2019 and $211 million on our tourist areas, almost 30 of these have domestic expenditure. been via contactless payment solutions.

It’s important to acknowledge that these This is important, as it shows a trend in areas have been heavily affected by COVID- the expectations of tourists for our NZ 19 in terms of tourism and revenue, however businesses to provide contactless the findings in this study are relevant and payment solutions, even when the useful in streamlining the payment systems percentage of revenue attributed to and catering to international tourists in a contactless payment is lower than other post-COVID-19 environment. regions in NZ. For example, even though

Breakdown of Contactless Payments in Tourism Areas PAGE 13

the revenue attributed to contactless in Franz Josef is lower than other areas, contactless payments as a method of payment is still extremely significant at 35%.

Essentially, tourists want to be able to have already set up in their country of origin. make quick and effortless payments for smaller ticket items when they travel. As a whole, the average contactless Contactless payments are undeniably transaction count is higher than the growing, and are beginning to take over average contactless revenue in tourist as the preferred payment method. areas, which indicates that customers not only are spending more through We hypothesise that this is due to the contactless payments, but they trust increasing demand from overseas visitors contactless payments to be secure to use the methods of payment that they overseas to make purchases.

The key message here is that when it comes to NZ tourism, contactless payment is evidently trending towards the preferred method of payment as the platform grows and increases in popularity. PAGE 14 CONTACTLESS PAYMENTS & COVID-19

Insights Summary

A General Increase in Demand

COVID-19 has undeniably changed the way in contactless payment cards and estimates which both merchants and consumers view that the number of cards issued in 2020 “will contactless payments. Tap & Go has exceed initial estimates by more than transitioned from a ‘nice to have’ to a 110 million cards, a figure that will bring the necessity for businesses who wish to continue total number of contactless payment cards operating and putting their customers’ health in circulation to more than 2 and safety first. The “no payWave” signs on billion internationally.” our local dairy terminals have slowly become less the norm, as “please use payWave” The driving factor behind the shift in ideology signs in shop windows contextually make around contactless payments is the simple more sense. fact that contactless solutions are much more sanitary than cash and mitigate the need to It’s not just here in New Zealand either; make physical contact with shared devices globally, the trends are the same. like payment terminals.

A recent ABI Research paper forecasts that As noted by ABI Research Director Phil Sealy; COVID-19 will accelerate the adoption of

" Although the trend was in place prior, COVID-19 will further " increase the speed of contactless adoption, particularly within countries and economies where cash remains king. PAGE 15

Right here in New Zealand we’ve seen our members can reach out directly to their Banks support the shift to contactless Westpac Relationship Manager. PayWave payments, with ANZ, BNZ, ASB, Kiwibank and limits have now been increased to $200 Westpac temporarily waiving payments on but can only be used for businesses who using a due to COVID-19. are allowed to open their storefronts to customers.” It’s evident that contactless is becoming the new norm and setting the bar even more-so The New Zealand Government also stated than before, for what customers expect from clearly that during Alert Levels 3 & 4, their favourite merchants. contactless payments are essential to operate safely and are here to stay as we NZ Government Best Practice move through to Levels 2 and 1; The emergence of COVID-19 has prompted a review of ‘best practice’ for merchants here “Your business must be contactless. Your in New Zealand, and contactless payment is customers can pay online, over the phone or at the forefront of the changing face in a contactless way. Delivery or pick-up must of retail. also be contactless.”

As advised by Retail.co.nz in their COVID-19 Underpinning this key advice from our Retail Support section; Governing bodies, is the following advice sourced directly from the World Health “A World Health Organisation spokesperson Organisation: has suggested that using contactless payments can help stop the spread of We know that money changes hands COVID-19. Westpac NZ is supporting small frequently and can pick up all sorts of businesses (annual turnover less than $500K) bacteria and viruses. by waiving contactless debit fees for eligible We would advise people to wash their existing customers for six months. Retail NZ hands after handling banknotes, and avoid touching their face. When possible it would also be advisable to use contactless payments to reduce the risk of transmission.

From all accounts it’s clear to see that contactless payments have quickly become the safe way forward, and ‘best practice’ for Kiwi businesses to take payment for their goods and services. PAGE 16

Our EFTPOS NZ COVID-19 Data Insights With the global forecasting for the peak in contactless payment solutions, and the advice and information provided by the New Zealand Government and World Health Organisation in mind, how did our Kiwi EFTPOS transactions look over the New Zealand lockdown period?

We undertook a review of the data Above: Total transaction value broken down by alert level collected from all Eftpos NZ and type of payment (contactless or non-contactless) terminals active between January 2020, up until the transition to Level 2 in May 2020. Here’s what we found.

In the graphs here, we can clearly see some noticeable trends:

The overall transactions pre- COVID-19 lockdown (January - March) are significantly higher than the following weeks while the country was at Alert Level 3 and 4 respectively. This drop in Above: Total transaction count broken down by alert level overall sales is to be expected, and type of payment (contactless or non-contactless) as many businesses who were not deemed essential closed. PAGE 17

During a ‘normal month’ pre-COVID-19, expected from retailers in terms of contactless transactions made up around contactless best practice, which likely 16.9% of all EFTPOS terminal transactions increased customer confidence in across the country. Non-contactless making purchases. transactions accounted for typically 83.1% of all Eftpos NZ terminal Most importantly, we begin to notice an transactions in New Zealand. increase in the percentage of contactless to non-contactless transactions from the Naturally, the overall sales during Alert moment the Prime Minister announces Level 3 & 4 were lower than the previous COVID-19 Stages at 26.59% (see Alert months, however there is a surge in sales Level 0) all the way through until the in alert level 2 as the country begins to latest data point at Alert Level 2 at regain confidence in returning to 37.47%. 'normality.' Our hypothesis for this surge, is the sheer number of businesses open in The trend showing the increase in New Zealand as restrictions were lifted. contactless payments over the period of At this point in time, New Zealand also Alert levels 0 to 4, and back down to 2 is had experienced a drop in daily cases as perhaps best exemplified in the well as clarity around what was tables below:

Transaction Value

Transaction Number PAGE 18

What we can see here, is a very clear increase in the percentage of contactless transactions and decrease in non-contactless transactions.

Contactless payments peaked at 37.47% of By the end of Alert Level 2, 37.47% of all all Eftpos NZ terminal transactions during transactions were contactless, and the lockdown period, during Alert Level 2. 26.23% of all revenue was attributed to contactless payments, compared to only This is a 10.88% overall increase in 16.9% at alert level 0. contactless transactions from Alert Level 0. To put this into perspective, 26.23% of Not only did the number of contactless revenue equates to $277,277,687.30 - a transactions increase over all of the alert highly significant value. levels, the percentage of revenue attributed to contactless transactions at each alert Evidently, there is a general trend level showed an increasing trend. emerging that shows that contactless payments are slowly edging towards becoming the norm in New Zealand, as a result of the COVID-19 impact. PAGE 19

Human Error & Transaction and passed back - demonstrating the level of Declines in Lockdown vigilance during the peak of COVID-19 in NZ.

The emergence of COVID-19 in New Zealand Through analysing our data set, we can see also highlighted the value of contactless that historically contactless transactions transactions in terms of mitigating human error accounted for 25% of all of the declines and transaction decline. During the Alert Level made, while representing 30% of all 4 lockdown, it was more pivotal than ever that transactions made. transactions were accepted smoothly, with as little physical contact with surfaces This means that contactless transactions are as possible. underrepresented in terms of declines, showing us that contactless transactions have In some instances (such as supermarkets), better accuracy than non-contactless EFTPOS cards were handed over the counter, payments. (See table below) operated by the shop assistant, wiped down

Insights we can learn from this data set:

Throughout this period, contactless There are a number of reasons why the payment declines were amount of non-contactless transaction underrepresented. This shows us that declines are overrepresented over this contactless payments definitively provide period, from terminal surface issues such more certainty that a transaction will go as cleaning with excess fluid or using through successfully the first time, plastic films or plastic bags to cover the reducing rates of contact with surfaces surface of the terminal, to sheer human and speeding up the time customers error during a highly stressful time. spent at the checkout. PAGE 20

The safety incentive for merchants: So, what does this mean for merchants? As vendors, it’s important to make the checkout process as seamless as possible Contactless payments have become during a pandemic where exposure is a risk the new ‘best practice’ for merchants and prioritisation of the safety of workers and in New Zealand. customers is expected, showing the high value of contactless transactions during this time. More and more businesses and industries are adopting contactless payments across the The financial incentive for merchants: country, and if the general trend continues and research predictions are correct, In addition to this, customers are likely to contactless will eventually become the change their mind about entering a store if preferred payment type for merchants they’re forced to wait in line and be exposed and customers alike. for longer periods. With an overrepresented decline rate through non-contactless What’s probably most important to note, is payments, and a lower decline rate through that while not all businesses have moved to contactless, it is evident that contactless contactless, we’ve observed an ideological payments would only positively affect a shift from consumers who now expect businesses' bottom line and improve a contactless payment options as a part of customers likelihood of entering any ‘good service and safe practice’, as a direct given store. result of the COVID-19 pandemic.

" There really is no better time than now " to make the change. PAGE 21 FREQUENTLY ASKED QUESTIONS

Although contactless payments are very Why is a PIN not required? common these days, they can still be a little The whole idea behind contactless payments mysterious for some merchants. is to enable both merchants and customers to process payments as conveniently as We've included some of the FAQs we get possible. Smaller payments can be processed from merchants about contactless within a couple of seconds by just presenting payments below. the card near the terminal. In New Zealand, card issuers have collectively decided to carry the risk of accepting smaller What are the different names used transactions without a PIN to ensure this for contactless? speed of payment is possible. However, if the The terms payWave, PayPass, and Tap & Go purchase amount is high, merchants might all refer to contactless payments. require the customer’s PIN.

How do contactless payments work? How secure is contactless payment? Contactless cards contain chips that emit It is very secure. All the information is radio waves. encrypted before it is transferred from the customer’s card to the EFTPOS terminal. This This technology is known as radio frequency means data thieves cannot steal a customer’s identification technology (RFID). When a confidential details. Also, there is a unique, merchant enables contactless payments on one-time number associated with each their EFTPOS terminal, the RFID reader in the transaction. This number is secured using terminal picks up the radio signals from the advanced encryption which makes it customer’s card and processes the payment. extremely difficult to generate a counterfeit card. In the case of mobile payment apps, near- field communication (NFC) technology is An unauthorised person cannot use a used. Mobile devices need to have NFC chips cardholder's entire bank balance in one to be able to facilitate contactless payments. transaction. They can only make a small purchase per transaction, usually $80-$100, before the card is disabled. PAGE 22

What if a customer presents their card What is the cost to the merchant for two times and gets charged twice for one a contactless payment solution? transaction? There is no per-transaction cost for This is not possible. No matter how many accepting debit card transactions in New times a customer presents their card, they Zealand, but contactless payments do incur a will only be charged one time for each per-transaction cost which is reflected in the transaction. Contactless EFTPOS terminals monthly merchant service fees charged by are designed to prevent overcharging and the merchant’s payment processor. programmed to charge only once per transaction. This applies even if a customer uses a contactless debit card, rather than a What if a customer accidentally credit card. makes a payment when they are passing near the terminal with a It is worth noting that EFTPOS New Zealand, contactless card? as a terminal provider, does not charge a fee for enabling contactless. There is no need to worry because contactless cards are not that sensitive to What is the contactless fee made RFID readers. A contactless card has to be really close (2.5-5 cm) to the terminal for the up of? payment to occur. The merchant must enter Merchant service fees are charged for the purchase amount first, and each contactless payment transactions and are transaction has to be completed before processed through your merchant facility. another can be made. Your total fee will be dependent on the type of business you have, how many transactions you process each month and the card types you - so there’s no ‘one size fits all’ price. PAGE 23

Typically, there are a few elements that make up a contactless fee: Switch Fee The fee charged by the e-commerce gateway or payment network you’re Interchange Fees connected to. A variable fee set by the card schemes. Interchange fees depend on the nature of the Bank Fee transaction, card type, merchant industry and Charged by your bank for merchant support, processing environment for the transaction - fraud prevention and authorisations. they are also dependent on the bank you’re with. Your total fee is an accumulation of these Scheme Fee costs. For an estimate of how much that The fee charged by whichever card type might be for your business, please get in you’re accepting (Visa, Mastercard etc.) touch directly. PAGE 24 HOW TO GET STARTED USING CONTACTLESS PAYMENTS

It is true that contactless payments are You already accept credit cards preferred by a vast majority of customers, but at your terminals does that mean it is right for every business? The majority of your customers pay How to tell if contactless solution is with credit cards right for your business You are willing to invest in a faster, more convenient payment solution The following checklist can assist in determining if contactless solution is right for You want to offer a secure payment your business. solution to your customers

Your business wishes to use contactless A merchant who ticks any of the above boxes payments to keep their staff and should consider enabling contactless customers safe payments on their EFTPOS terminal.

You'd like to be ahead of the curve in How to get set-up adoption of best-practice contactless Merchants need to get in touch with their solutions merchant bank to complete the enablement process for contactless payments. Your business has peak hours and long queues Tell the customers Your terminal will display the contactless You need a solution to process payment icon to show that you accept payments quickly in order to serve contactless payments. You can tell your more customers customers before they make it to the front of the line with additional POS signage. PAGE 25

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