Updated on November 22, 2021
We know all the hoopla is about EMV right now and rightly so. We have got to have more secure transactions at our stores and on the web or we’re all in trouble. As merchants across America are gearing up to be EMV compliant, we find that almost 60% of small businesses are not even aware of the transition. European countries have been using the technology for years and have reduced fraud substantially compared to when they were using the magnetic stripe cards. The liability shift started this year on October 1, 2015 and now merchants are responsible for fraudulent transactions and face heavy fines.
If you haven’t upgraded your terminal, we invite you to get a free placement terminal here from one of our recommended merchant services providers. We think you’ll be pleasantly surprised when you find your business is compliant but also has a better bottom line for your business with interchange-plus pricing. The great news about this terminal is it’s not only EMV compliant but also (NFC) Near Field Communication compliant as well giving you and your customers security peace of mind. You’ve seen them when you’re out shopping, it’s the one where customers can tap and pay. Check it out!
The adoption of new mobile payment technology is moving faster than anyone imagined and could very well make the EMV shift a thing of the past, but for now you need to be EMV compliant or you could be facing heavy penalties and fines.
What is NFC?
Near field communication (NFC) is the set of protocols that enable electronic devices to establish radio communication with each other by touching the devices together, or bringing them into proximity to a distance of typically 10cm or less.
Early business models such as advertising and industrial applications were not successful, having been taken over by alternative technologies such as bar codes or UHF tags, but what distinguishes NFC is that devices are often cloud connected. All NFC-enabled smartphones can be provided with dedicated apps including ‘ticket’ readers as opposed to the traditional dedicated infrastructure that specifies a particular (often proprietary) standard for stock ticket, access control and payment readers. By contrast all NFC peers can connect to a third party NFC device that acts as a server for any action (or reconfiguration).
Like existing ‘proximity card’ technologies NFC employs electromagnetic induction between two loop antennae when NFC devices – for example a ‘smart phone’ and a ‘smart poster’ – to exchange information, operating within the globally available unlicensed radio frequency ISM band of 13.56 MHz on ISO/IEC 18000-3 air interface and at rates ranging from 106 kbit/s to 424 kbit/s.
Each full NFC device can work in three modes: NFC Card Emulation; NFC Reader/Writer; and NFC peer-to-peer (P2P mode):
- NFC Card emulation mode enables NFC-enabled devices such as smartphones to act like smart cards, allowing users to perform transactions such as payment or ticketing.
- NFC Reader/writer mode enables NFC-enabled devices to read information stored on inexpensive NFC tags embedded in labels or smart posters.
- NFC peer-to-peer mode enables two NFC-enabled devices to communicate with each other to exchange information in an adhoc fashion.
NFC tags typically contain data (currently between 96 and 8,192 bytes of memory) and are read-only, but may be rewritable. Applications include secure personal data storage (e.g. debit or credit card information, loyalty program data, Personal Identification Numbers (PINs), contacts). NFC tags can be custom-encoded by their manufacturers or use the industry specifications provided by the NFC Forum, an association with more than 160 members founded in 2004 by Nokia, Philips Semiconductors (which became NXP Semiconductors in 2006) and Sony were charged with promoting the technology and setting key standards, which includes the definition of four distinct types of tags that provide different communication speeds and capabilities in terms of flexibility, memory, security, data retention and write endurance. The Forum also promotes NFC and certifies device compliance. There can be secure communications by applying encryption algorithm as it is done for Credit Card