Near field communications technology refers to the wireless technology that replaces Bluetooth and securely transfers data between 2 devices that are in very close proximity using radio waves. It is the technology that powers Mobile Wallets such as Google Wallet, Softcard, and Apple Pay.
NFC is the newest available card processing technology in the payment card industry, and like all new technologies, you need to evaluate if you want to be an early adopter, or take a wait and see approach. Here are some pros and cons to assist in your evaluation:
With the release of Apple Pay last week, every news resource seems to be talking it up, raising questions about the underlying technology that makes Apple Pay possible. Here are a few common questions that people are asking, and why it may just revolutionize the mobile payment industry:
What is NFC Technology?It stands for “Near FieldCommunications.” It’s simple to understand. NFC is a short-range, low-power wireless technology just like Bluetooth. It uses radio frequency and transfers minuscule amounts of data between devices you hold just a few inches apart. Currently, what it does is uniquely identify you and your bank account to a merchant’s computer. Smartphone owners can also create peer-to-peer radio communications and easily pass data from one smartphone to another.
EMV (Europay, MasterCard and Visa) is a now the global standard for inter-operation of integrated circuit cards, or "chip cards"). Chargeback liability for all merchants without EMV by October 2015 will end up on the doorstep of that merchant. If you do not offer EMV and someone uses a fraudulent card at your location, you are liable. If you accept EMV, you are not.
And how about all those stolen cards from merchant data bases? If you do not use EMV, and someone breaches your security and steals your customer data, you will be responsible for any purchases made with that stolen data. If you accept EMV, you are not liable. This is called a chargeback liability shift --- from the issuing banks to the merchant. And it all adds up to one incredible and compelling argument to join the EMV revolution.