The payment world is changing fast and with it, the vending industry. Contactless payments have taken off across Europe and for vending operators, adapting to this new trend is a must. It’s not just about keeping up with customer expectations; it’s about making things faster and easier for everyone. Having said that, some operators are concerned that the lack of a PIN entry, for contactless payments, could lead to high decline rates. And that’s what we want to clear up in this article. There’s really nothing to worry about.
Decline rates are low
Let’s start with the numbers: Vendon’s recent data shows that only 2.4% of contactless declines happen because of insufficient funds and just 1.9% are down to PIN requests. But the rest? They’re down to vending-specific issues rather than actual payment failures. So, it’s more likely that someone will have insufficient funds in their account than it is for their bank to ask for a PIN. The bottom line? The vast majority of contactless payments sail through: proof that not requiring a PIN doesn’t cause problems.
How often do you actually need a PIN anyway?
Contactless payments sometimes require a PIN, but the rules are specific. European banks and networks like Visa and Mastercard follow security guidelines. For example, after you’ve made five consecutive contactless transactions, or if the total spend reaches 150 EUR since your last PIN entry, your PIN will be requested. The general limit across most of Europe for contactless payments without a PIN is 50 EUR.
With Apple Pay and Google Pay, PINs are rarely needed due to added security features like facial recognition or fingerprints, allowing PIN-free transactions. A new “PIN Online” feature is now rolling out, which enables users to enter a PIN for payments over 50 EUR without inserting a card. This is expected to be available widely this year.
Kristians Vebers, CEO of Vendon, shared a recent experience: “I bought a bottle of water at Riga Airport from a vending machine equipped with a Vendon payment terminal. It took just 10 seconds, it was quick, simple, and efficient. Adding a PIN only complicates things and slows down transactions.”
If you’re not part of the cashless revolution you need to put that right sooner rather than later. With contactless payment growing by 30% in recent years, reaching nearly 21 billion payments across Europe, we’re all in for an increasingly cashless future. In some countries, over 80% of retail transactions are now cashless, especially in sectors like vending, where quick, easy payments are key.
Contactless is changing the nature of what we buy just as much as how we pay. Studies show that when customers use a card to pay, they tend to spend more money. So, for vending operators, adopting contactless isn’t just about customer convenience; it’s also about grasping a business opportunity.
The benefits of Vendon contactless payment terminal
- Vendon’s payment terminal supports various payment methods—from contactless credit and debit cards to NFC-enabled devices, like smartphones. This flexibility helps vending operators serve all customer types, maximising every opportunity.
- Another great benefit is that the terminal enables faster, simpler refunds, so you can look forward to fewer complaints and more happy customers.
- Reducing the amount of cash you handle means fewer service visits and reduced operational costs, adding long-term savings, while funds reach operators by the next day, helping to keep cash flow steady.
- Vendon is also PCI DSS L1 Service Provider and EMV Level 3 compliant, ensuring secure transactions in about three seconds. If a transaction fails, funds are returned quickly, maintaining high reliability.
PIN-free, worry-free
So you can rest easy; because the data speaks for itself. Payments that are PIN-free are transacted more smoothly and more quickly, without impacting success rates. Vendon payment terminals are built for modern needs, offering a balance of advanced tech, user-friendliness, and security.
Operators who have embraced this technology are seeing growth in sales, lower costs, and a simplified business model. What’s more, the Vendon payment terminal is affordable, easy to install, and ready to meet tomorrow’s demands as well as today’s —helping operators set up for long-term success in a cashless economy. So why wait? Join the future of payments with Vendon today, and give your business a lift.
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