About Contactless Payment - Seco Garz & Fricke KarL4 Operating Manual

3 ABOUT CONTACTLESS PAYMENT

Contactless payment describes the possibility to carry out payments by using the Near Field
Communication technology (NFC). This kind of payment today is supported by most of the
known payment cards, e.g. credit cards and also local solutions like the girocard in Germany
(formaly EC card), state-of-the-art smartphones and on the other side POS terminals. The NFC
technology, which makes secure contactless payment possible, was the linchpin for new
applications that makes payment cards even smarter and more convenient.
Just hold it close to the payment terminal and you're done!
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The payment process is reduced to seconds.
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Amounts of up to 50 euros can usually be paid without PIN or signature.
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Payment transactions that do not require the entry of a PIN, are especially common in
applications in the area of vending and ticketing machines due to the small amounts of money
involved.
The easy payment process with a Terminal without PIN pad
The payment process is started by placing the card or smartphone on the NFC antenna.
Payment is made without authorization. Neither a PIN nor a signature is required. The payment
process is controlled by the risk management of the card, either offline or online. In the case of
online payment, the card is checked beforehand via the banks' authorization system.
The contactless payment terminal KarL4 stores the data of each transaction, but passes them
on online as quickly as possible for further processing by the banking systems. As a rule, the
cardholder's account is debited and the amount is credited to the dealer's account the day after
the payment. The dealer's account is credited as a collective transfer via all of the dealer's
terminals and all transactions of a given day.
Special feature "Dealer card" for the girocard in Germany
For age verification, each terminal requires a dealer card (a "small" chip card in ID000 plug-in
format). Information is stored in the chip of the dealer card that enables the terminal to evaluate
the age information on the girocard.
Dealer cards are only valid for a limited period. After the validity period has expired,
they no longer function and must be replaced.