Contactless Questions & Answers

1. How do I know that a payment with a contactless card has been approved?

2. Do I have to upgrade the terminal software in order to support contactless payments?

3. How can I support contactless payments?

4. How quick is a contactless transaction?

5. What does it mean for a transaction to be conducted offline?

6. Can we demand a surcharge for the use of contactless cards?

7. Can the cardholder choose to add a tip to a transaction with a contactless card?

8. What is the amount limit for a contactless payment without PIN?

9. For amounts above the limit, what verification methods are available?

10. What is the amount limit for a contactless card?

11. How does one annul a contactless transaction?

12. How does one activate contactless functionality for a card?

13. Does BankAxept support contactless payments?

14. For what transaction types can one use contactless payments?

15. Are contactless payments secure?

16. If a cardholder has several contactless cards in their wallet, can the terminal read the cards at the same time?

17. Should a cardholder take extra precautions to protect their contactless card from fraud attempts?


Answers

1. How do I know that a payment with a contactless card has been approved?

All complete transactions conducted with contactless cards or cellular phones with NFC will result in an audible beep from the terminal, and a normal receipt certifying that the transaction is approved.

2. Do I have to upgrade the terminal software in order to support contactless payments?

Yes. The terminal software must be upgraded to version 2.12 or newer.

3. How can I support contactless payments?
Customers using the PosPay Client should do the following:
  1. Make sure the terminal software is version 2.12 or newer.
  2. Make sure the PosPay Client is version 4.15 or newer.
  3. Make sure the ECR supports event no. 1712 - transaction approved, no CVM.
    Alternatively, add the following line to config.properties and restart PosPay Client:
    pospay.client.translateEvents=1712:1700
  4. Make sure the ECR will wait for a response to a reversal or manual reversal before printing out a receipt, as they may not always be approved. See the section on annulling a transaction.

Customers using direct integration should do the following:
  1. Make sure the terminal software is version 2.12 or newer.
  2. Support new terminal events:
    1. 830 / See phone - The customer should see their phone for instructions. Typically they will be asked to enter a PIN.
    2. 831 / Unsupported card - The terminal has detected an unsupported contactless card.
    3. 832 / Insert or try another card - Insert the card into the chip slot, or try a different card.
    4. 838 / See phone - Enter PIN on mobile and tag again.
  3. Support new values in TLV tag 0x9F39:
    1. In digit 1; Terminal capability:
      1. 5 - Contactless
      2. 9 - Contact and contactless
    2. In digit 2; PAN entry mode:
      1. 7 - Contactless
  4. Support new entry modes in TLV tag 0x9F998045 / Entry mode:
    1. K - ICC contactless.
    2. L - MSD contactless.
  5. Support a new ID Method in TLV tag 0x9F991F / ID Method:
    1. F - On-device verification method.
  6. Support new TLV tags:
    1. 0x9F998042 / Cless Ready - Variable-length alphanumeric string. Check if the terminal is ready for contactless. The string is subject to change, and should not be parsed. Nevertheless, at the time of writing, some values are:
      1. 0x0000 - Terminal is cless ready
      2. 0x0001 - Terminal has no cless reader
      3. 0x0002 - Terminal cless reader disabled
      4. 0x0004 - No Paypass Kernel installed
      5. 0x0008 - No PayWave Kernel installed
      6. 0x0010 - No cless PPSE App installed
      7. 0x0020 - No cless App loaded
      8. 0x0040 - No Paypass AID in terminal
      9. 0x0080 - No PayWave AID in terminal
      10. 0x0100 - No BAX Interac Kernel(2.16+)
      11. 0x0200 - No BAX Interac AID(2.16+)
      12. 0x0400 - No J-Speedy Kernel(2.18+)
      13. 0x0800 - No J-Speedy AID(2.18+)
    2. 0x9F998043 / Merchant name and location - Variable-length alphanumeric string. Input from ECR. Send via NFC to a device being used by the customer for authorization.
    3. 0x9F998044 / Cless indication label - Variable-length alphanumeric string. Required by PayWave (VISA). If present, this label should be shown on the receipt.
    4. 0x9F998046 / Cancel response - 4-byte binary value. Included in responses to cancellations to indicate whether or not they were approved.
      1. 0 - Cancel request OK
      2. 1 - Cancel request rejected
  7. Make sure the ECR will wait for a response to a reversal or manual reversal before printing out a receipt, as they may not always be approved. See the section on annulling a transaction.

4. How quick is a contactless transaction?

Both MasterCard and VISA have requirements as to how quickly the transaction should be carried out. If the transaction is conducted offline, the transaction will be approved within a few hundredths of a second after the card has been read.

5. What does it mean for a transaction to be conducted offline?

Assuming the transaction amount does not exceed any of the limits specified in the terminal and the card, the transaction will be carried out offline. An offline transaction is a transaction where no communication takes place with the processor, server or acquirer during the transaction.

6. Can we demand a surcharge for the use of contactless cards?

Yes, as of terminal version 2.13. When a surcharge is imposed, the customer will be asked to confirm the amount before the transaction is completed.

7. Can the cardholder choose to add a tip to a transaction with a contactless card?

Yes. As of terminal version 2.13, tips will work with contactless payments as long as the tip functionality is enabled.

8. What is the amount limit for a contactless payment without PIN?

The limit is set, dependent on the country, to NOK 200, DKK 200, SEK 250, or EUR 30.

9. For amounts above the limit, what verification methods are available?

The available alternatives are verification via PIN code, signature, or fallback to chip and PIN.

10. What is the amount limit for a contactless card?

Contactless cards have a cumulative limit defined by the issuing bank. When the cumulative limit has been reached, the cardholder will have to verify the next contactless payment with a PIN. After this payment, the accumulated amount will be reset.

11. How does one annul a contactless transaction?

If the transaction was approved offline, a refund/return of goods transaction must be used for this purpose. If the transaction was approved online, a standard reversal can be performed.

12. How does one activate contactless functionality for a card?
Several banks have decided that a contactless card must be «activated» prior to contactless use:
  1. The first time you perform a purchase with a contactless card, you should hold the card above the contactless symbol on the terminal. Contactless symbol
  2. The terminal will emit a beep, and ask you to «Use chip or try another card».
  3. Insert the card into the chip slot in the normal way, and verify the transaction using your PIN.
  4. After this transaction, contactless payment will be activated.

Please note: Cards that have the VISA PayWave contactless application (e.g. cards from DNB), will only activate contactless payments if the card holder has first attempted a contactless payment at a Norwegian merhant. This is due to the fact that normal chip transactions will default to BankAxept.

13. Does BankAxept/Dankort support contactless payments?

BankAxept AS and Nets Danmark AS has full support of Contactless payment transactions. To verify functionality from your PayEx terminal, contact PayEx Customer Operations.

14. For what transaction types can one use contactless payments?

Contactless payments are supported for normal purchases, and refund/return of goods. Other kinds of transactions, such as purchases with cashback, must be carried out using chip or magnetic stripe.

15. Are contactless payments secure?

Yes. Contactless payments approved by Visa and MasterCard utilize the same technology as chip and PIN transactions. The security of the solution is ensured by several layers of security, including protection of the wireless communication between the card and payment terminal. In addition, cardholders will regularly have to verify themselves using a PIN, at intervals determined by the amount limit in their card.

16. If a cardholder has several contactless cards in their wallet, can the terminal read the cards at the same time?

No. The terminal will detect any attempt to read several cards, and ask the cardholder to use only a single card.

17. Should a cardholder take extra precautions to protect their contactless card from fraud attempts?

Banks will be able to provide the best advice in this regard, but a general piece of advice is to handle the contactless card in the same way as any other payment card. If a cardholder suspects misuse of their card, they should always contact their bank for assistance.