3 Myths About Contactless Payments

Contactless payments are picking up traction in the U.S. and worldwide. In fact, over 90% of transactions in Australia are contactless. In the U.K. and Canada, more than 50% are contactless.

The U.S. has been slower to embrace contactless payments, but this will change as more large businesses begin jumping on board. Chase, Wells Fargo, and American Express all offer contactless cards to their customers.

3 Myths About Contactless Payments

Anytime a new trend takes off, there are bound to be misunderstandings. Many consumers and businesses are skeptical about contactless payments. Often, this is because they’re buying into one of the following three myths.

Myth #1: I could accidentally pay for someone else’s purchase

One of the biggest myths about contactless payments is that you could accidentally pay for someone else’s purchase. The idea is that if you stand too close to the terminal while someone else is paying, your payment information could accidentally be used instead.

This scenario is plausible in theory, but it’s very unlikely. The card must be within one to two inches of the terminal in order for it to pick up your card’s signal. I don’t know about you, but I don’t stand that close to people when I’m checking out at Target.

Myth #2: Contactless payments are a fraud risk

Since contactless cards use radio-frequency identification (RFID), many people assume they are a fraud risk. However, the type of RFID technology used is called near-field communication (NFC).

This technology is also used in mobile wallets offered by Apple Pay and Google Pay. NFC uses tokenization to replace your credit card number with a random set of numbers and characters for each transaction.

This means hackers can’t access your credit card number or personal information. So, you can rest assured that contactless cards are relatively safe.

Myth #3: Accepting cash is easier and cheaper for businesses

Many businesses are hesitant to accept contactless payments because they believe that cash is the easier option. But this simply isn’t true. Contactless payments are a better option for both businesses and consumers.

For customers, contactless payments are quicker and easier than paying in cash. And think about all the time and money that it takes to manage the cash your business brings in.

Either you manage the cash yourself, or you pay employees to do it for you. You need a way to accept cash from customers and manage a cash drawer. The money needs to be counted at the end of the day and stored safely.

You also need to transport all this money to the bank. Contactless payment doesn’t require any of that extra legwork.


Changes in technology always bring up new fears in consumers and businesses. But contactless payments are a convenient, safe, and affordable option all around. If you’re a business owner who’s on the fence about accepting contactless payments, feel free to check out my blog post on this very topic.

Read More: 5 Reasons Your Business Needs to Embrace Contactless Payments

To your success!

Written by, Brian Johnson