As convenient as it may be, encouraging PayWave or 'tap' for payments typically incurs higher costs for business owners compared to traditional methods of card payments that require a PIN or a swipe.

These costs arise from several factors:

Transaction Fees: Contactless payments often come with higher processing fees. These fees are set by the payment networks (like Visa, Mastercard) and can vary depending on the type of card used and the terms of the merchant's agreement with their payment processor. The fees are generally a percentage of the transaction amount, and the rate can be higher for contactless payments due to the perceived convenience and speed.

Technology and Equipment: Businesses need compatible terminals that can handle contactless payments. While many newer EFTPOS machines are equipped with this technology, upgrading or acquiring such terminals can represent an additional cost for business owners.

Security and Fraud Protection: Contactless payments are designed to be secure, using encryption and tokenization to protect transaction data. However, the increased risk of fraud with lost or stolen cards can lead to higher costs in terms of insurance and fraud protection services.

Despite these higher costs, many businesses adopt contactless payment technologies due to the convenience they offer to customers, potentially leading to faster transaction times and increased customer satisfaction.

No matter what type of terminal you have in store, if you're a thrifty business owner and want to save yourself on fees, a little sign to encourage customers to insert their physical credit cards can help with that.