To help protect cardholders against the risk of fraud, Visa is introducing a Zero Floor Limit for all contactless transactions.
A Floor Limit is the maximum amount a merchant can charge to a cardholder without needing to get authorisation from the card issuer. A ‘Zero Floor Limit’ simply means that every card transaction has to be authorised online by the card issuer.
While this is, undoubtedly, good news for cardholders it will give retailers less protection, warns the NFRN. There may be an increase in the time it takes to process transactions made by contactless payment as a result.
The NFRN would suggest that you make sure both your staff and customers are made aware of these changes.
As all contactless payments will now be authorised online and in real time (in the same way as Chip & PIN transactions), you may notice an increase in the time it takes to process a contactless payment.
Retailers should be warned that the ‘beep’ heard when a contactless card is tapped against the card reader does NOT mean that the payment has been authorised; instead you should wait for the authorised message to display before finishing the transaction with the customer. Not waiting for transactions to be fully authorised in this way means you risk being out of pocket if the payment is declined and the customer has already left the store.
To prepare for the Visa Zero Floor Limit change, PayPoint will be updating their card payment terminals remotely starting from the 7 August 2017. Online authorisation of ALL contactless payments will take effect as soon as your PayPoint terminal is updated.
Ensure your staff are ready for the change by training them in advance, particularly on the importance of making sure each card transaction is authorised before the customer leaves the store.
The speed at which you process card payments depends on your internet connection, so it might be prudent to review the speed of your service with your supplier.
This article was originally published on 1 August 2017 and subsequently updated on 15 August 2017.