Contactless Payments at the Dealership: Setup and Customer Experience

Tap-to-pay has gone from novelty to expectation. Customers are pulling out their phones or tapping their cards without thinking twice — and they expect your dealership to accept it.

If you're not set up for contactless payments, or if your setup could be better, here's what you need to know.

What Is Contactless Payment?

Contactless payment uses Near Field Communication (NFC) technology to transmit payment data wirelessly over a very short distance (a few centimeters). Both Visa and Mastercard have heavily invested in this technology.

Forms of contactless:

• Contactless cards: Cards with a wireless chip (look for the wave symbol)
• Mobile wallets: Apple Pay, Google Pay, Samsung Pay
• Wearables: Smartwatches, fitness bands with payment capability

All use the same underlying technology at the terminal.

Why Contactless Matters for Dealerships

Speed

Contactless transactions complete in under 2 seconds — faster than chip insertion (3-5 seconds) and much faster than swipe-and-sign.

For high-volume service departments, those seconds add up.

Customer Preference

Contactless usage has grown dramatically:

• Many customers now prefer it
• Younger demographics especially
• It's what they use everywhere else

Not accepting contactless feels outdated.

Hygiene

Post-pandemic, many customers prefer not handling terminals:

• No touching buttons
• No touching stylus
• Quick, minimal contact

Security

Contactless transactions are highly secure:

• Tokenization (no actual card number transmitted)
• One-time codes for each transaction
• Limited range prevents interception

Actually more secure than chip or especially mag stripe.

Setting Up Contactless

Terminal Requirements

To accept contactless, your terminal needs:

• NFC reader (look for wave symbol on terminal)
• Contactless enabled in terminal configuration
• Processor support for contactless transactions

Most modern terminals have NFC capability built in.

Checking Your Current Setup

Test it:

1. Get a contactless card or open Apple Pay on your phone
2. Hold near the terminal
3. If it prompts and accepts the tap, you're set
4. If nothing happens, contactless may not be enabled

If it doesn't work:

• Terminal may not have NFC (rare in modern terminals)
• Contactless may be disabled in settings
• Configuration with processor may be needed

Enabling Contactless

If your terminals have NFC but it's not working:

1. Contact your processor

   • Verify contactless is enabled on your account
   • Request configuration update if needed

2. Terminal configuration

   • Some terminals need contactless enabled in settings
   • May require processor-initiated update

3. Test and verify

   • Test with multiple contactless methods (card, Apple Pay, Google Pay)
   • Verify receipts show contactless transaction

Optimizing the Experience

Terminal Positioning

Make the NFC symbol visible:

• Customers should see where to tap
• Don't hide terminal behind clutter
• Angle terminal toward customer

Easy access:

• Customer shouldn't reach awkwardly
• Terminal at comfortable height
• Unobstructed approach

Signage

Let customers know you accept contactless:

• Stickers on terminal showing accepted methods
• Counter signage mentioning tap-to-pay
• Apple Pay, Google Pay logos if space allows

Customers may assume contactless isn't available if they don't see indicators.

Staff Training

Staff should know:

• How to prompt for contactless payment
• What successful tap looks/sounds like
• What to do if tap fails

Simple script: "Would you like to tap your card or phone, or insert your chip?"

Offering tap first normalizes it.

Mobile Wallets Specifically

Apple Pay

• Works on iPhones and Apple Watches
• Double-click side button to activate
• Hold near terminal
• Very popular with iPhone users

Google Pay

• Works on Android phones and Wear OS watches
• Unlock phone, hold near terminal
• Growing usage with Android users

Samsung Pay

• Works on Samsung devices
• Unique: can work on some mag stripe-only terminals (MST technology)
• Similar user base to Google Pay

All three process as contactless through your terminal — no special setup per wallet.

Department-Specific Considerations

Service Department

High value for contactless:

• Highest transaction volume
• Customer convenience matters
• Every second saved helps throughput

Implementation:

• Ensure cashier terminals are contactless
• Service lane mobile terminals should have NFC
• Signage at checkout

Parts Counter

Moderate value:

• Variable transaction volume
• Quick transactions benefit from tap
• Counter space for terminal

Implementation:

• Counter terminal with visible NFC area
• Signage showing acceptance

F&I Office

Lower volume, high value:

• Transactions are less frequent
• But convenience still matters
• Professional experience

Implementation:

• Ensure office terminal is contactless-capable
• May be less used (customers may prefer chip for large amounts)

Mobile / Service Bay

Convenience focused:

• Meet customer where they are
• Tap is fastest for on-the-go
• Mobile wallets especially useful

Implementation:

• Mobile terminals with NFC
• WiFi or cellular connectivity
• Battery life for untethered use

Transaction Limits

Contactless Limits

Some issuers or networks have limits on contactless transactions without PIN:

• Historically $100 or less
• Limits have increased significantly
• Many now $250+ or no limit

For typical service transactions, limits are usually not an issue. For large transactions (down payments, major repairs), customers may need to enter PIN or use chip.

What Happens at Limit

If transaction exceeds contactless limit:

• Terminal prompts for PIN, or
• Terminal prompts to insert chip

It's not a failure — just an additional step for security on large amounts.

Troubleshooting

"Tap not recognized"

Possible causes:

• Customer tapping wrong area
• Card/phone too far from reader
• Phone wallet not activated

Solutions:

• Show customer where to tap
• Have them hold closer
• Verify wallet is open on phone

"Transaction declined"

Possible causes:

• Card issue (limit, expired)
• Phone wallet not set up correctly
• Issuer decline

Solutions:

• Try chip insertion as backup
• Customer may need different card
• Not a terminal problem

"Contactless not working at all"

Possible causes:

• NFC not enabled on terminal
• Processor configuration issue
• Hardware malfunction

Solutions:

• Contact processor to verify configuration
• May need terminal update or replacement

Future of Contactless

Where It's Heading

• More wearables: Watches, rings, fitness bands
• Biometric integration: Face ID, fingerprint as authorization
• Transit integration: Same tap for payments and transit
• Continued growth: Becoming default for many consumers

What to Expect

Contactless will become the dominant in-person payment method. Chip insertion will feel outdated. Mag stripe will be legacy/emergency only.

Dealerships that embrace contactless now will feel current. Those that don't will increasingly feel behind.

Measuring Success

Metrics to Track

• Contactless transaction percentage: What share of transactions are tap?
• Transaction time: Has average checkout time decreased?
• Customer comments: Any feedback about payment experience?

What Good Looks Like

After implementing/optimizing contactless:

• 20-40% of transactions by tap (varies by customer base)
• Faster checkout times
• Positive customer response
• Staff comfort with the technology

---

Get Contactless-Ready →

Anchorbase terminals support tap-to-pay out of the box. We'll make sure your dealership is set up for the way customers want to pay.