Chip card technology was designed to reduce counterfeit, lost/stolen and card-not-received fraud. Chip cards can either be contact or contactless.

Contact EMV™ chip cards refer to either “Chip and PIN” or “Chip and Signature” cards. It utilizes microprocessor chips which securely store card data. The card is inserted into a terminal reader designed for smart cards. Depending if the card is “Chip and PIN” or “Chip and Signature” it will require the Card Member to either enter a PIN for authorization at the point of sale or sign for the transaction as with magnetic stripe cards.

Contactless transactions are initiated when a contactless-enabled device is touched or tapped in front of a contactless reader at the point of sale. Account and security information is sent using radio frequency, from the contactless device to the reader. Both the device and the reader contain small antennae that allow data communication to take place.

Yes. Contactless cards benefit from the same security features found on a contact EMV chip card. When a contactless transaction is run through a contactless-enabled reader and terminal, information is encrypted and securely sent to the host with the purchase details.

The American Express contactless specification is called Expresspay, ensuring global interoperability of American Express contactless payment transactions regardless of where they are processed. Once Expresspay is enabled, contactless transactions can be initiated in both EMV and non-EMV markets. Expresspay specifications support both Mobile NFC-initiated transactions and contactless card payments.

• Improve efficiency at the point of sale by moving customers through the lines faster and with fewer resources.
• Enhance payment security at the point of sale.
• Partner with American Express to use data analytics to understand consumer spending patterns to promote loyalty and for marketing initiatives.
• Help to reduce cash handling and optimize operations.

Cardholder verification requirements for contactless transactions vary by market and the contactless terminal limits set by the acquirer. In markets where high value contactless transactions are the standard, then a form of cardholder verification will be required above a certain threshold. The method of cardholder verification may be PIN or Signature. In markets where the contactless transaction limit is set at a lower value, cardholder verification is typically not required, in accordance with the American Express No Signature Threshold.

Not necessarily. In fact, contactless readers are available from major manufacturers and have been certified for American Express contactless payments. American Express-certified contactless readers are also compatible with a variety of terminals. Merchants should work with their terminal provider to determine what solutions are available. Merchants who own point-of-sale readers or integrated terminals may need to upgrade equipment to accept American Express contactless payments. These readers or terminals must complete required testing and certification. Electronic cash register (ECR) and point-of-sale system software may also need to be updated in order to process.

The merchant can contact the terminal provider to ensure that the existing equipment is certified to meet American Express specifications. If not, the terminal provider may need to upgrade the device to accept American Express contactless payments.

Costs and timelines will depend on the merchant’s current point of sale environment.

• If the merchant’s processor supplies the POS device, implementation may involve changing or upgrading the POS device to accept American Express contactless payments and costs associated with internal communications and training.
• If merchants own their POS device, costs can vary based on a number of factors, including:
  • Purchasing or upgrading new readers or terminals to support contactless acceptance.
  • Update internal systems to support contactless data and processing.
  • Internal communications and training.

Please contact your American Express representative for additional information.