Imagine a customer comes into your store. They have their coffee and sandwich and are ready to pay. They have their card ready, but nothing happens. The reader requires the card to be ‘dipped’ but they were expecting to tap. This can cause an awkward situation with a queue building behind them. Whilst payment friction isn’t often in the news, it can affect the way people feel about your business. Customers nowadays don’t think about how they want to pay. They expect a seamless experience and want to pay in their preferred method. They may want to tap, dip, swipe, or pay in cash. So what can you do to ensure your customers can pay how they want, without overspending or overcomplicating things?
Tap, Dip, Swipe: What’s the Difference?
First off, let’s understand the difference between the payment methods.
Swipe (Magnetic Stripe)
This is the oldest payment method. Swipe your card, and the data on the black stripe at the back of your card will be read. However, this data is static, so if it gets copied, it can be duplicated onto a fake card.
Dip (EMV Chip)
When you insert your card into the reader, the chip will communicate with the terminal. Every transaction will create a unique code. This cannot be used again, so chip cards have massively helped reduce fake card fraud.
Tap (Contactless)
Contactless payments use Near Field Communication (NFC). The customer will hold their card, phone, or watch close to the reader (usually a few centimetres away). Like chip payments, this has the same level of security with unique codes. Mobile wallets such as Apple Pay and Google Pay also add tokenisation, meaning you will never see your customer’s real card number.
What Customers Actually Expect Today
After observing how people are paying in stores, cafes, salons, and pop-ups, we can see a few trends.
Tap
Contactless payments became popular during the pandemic. People wanted to reduce contact with surfaces. It is quick and easy to use, so many people have become used to using it. Many customers now expect to be able to tap, and if you don’t have a tap reader, it can feel outdated.
Mobile Wallets
Many people only carry their phone with them. If you don’t have a terminal that allows Apple Pay, Google Pay and Samsung Pay, you will lose customers.
Chip
Not all cards are contactless, and some customers aren’t happy paying larger amounts by tapping. Chip is a reliable backup option. A good terminal will make this easy.
Swipe
Whilst less common, many older cards, gift cards, and some international cards may require a swipe. With a modern terminal, this won’t cost you much to offer.
Fast & Clear
Nobody likes guessing. Are they supposed to tap? Do they need to enter a PIN? Was the payment successful? A clear screen and friendly beep or confirmation can make all the difference. Whilst not something most owners will realise.
Pro Tip: Customers rarely complain about what payment methods you accept. They will complain about confusion, slow payments, and unsuccessful payments. A smooth experience is key.
Why Your Payment Method Affects Sales
Whilst payments might seem like an admin task, they are extremely important. It is the exact point where a customer will decide if they enjoyed their experience.
A poor payment method can cause:
- Longer queues – Slow payments can cause frustration.
- Lost sales – If the payment is declined or not accepted, they may not purchase.
- Loss of trust – A confusing or complicated reader can make your business look unprofessional.
- Missed impulse purchases – Fast tap payments mean it’s easy to add small extras.
However, a smooth payment experience can increase the chances of customers returning. It is one of the cheapest ways to boost your customer experience.
Matching Your Setup to Your Business Type
There is no perfect payment method. It all depends on how you sell.
| Type | Best Method | Why |
|---|---|---|
| Cafe / Fast Food | Fast Tap Counter Terminal | Speed matters during rush hours. |
| Retail | Tap, Chip, Swipe & Receipt Terminal | Different types of customers with varying purchase sizes. |
| Salon / Services | Tip prompts Terminal | Tips are common in several services sector. |
| Market Stall / Pop-Up | Mobile Reader (Attached to Phone/Tablet) | A portable payment solution works here. |
| Delivery / Mobile | Handheld / Mobile Reader | On spot payment support is a must. |
If you’re starting from scratch, it is a good idea to choose a terminal that accepts all payment methods. Knowing how in person payments work will help you choose the right payment method for you.
How to Set Up a Customer-Friendly Counter
Follow the steps below.
1. Know Your Customers
Observe how people are already paying. If most are tapping their phone then you should prioritise this. If your customers are older or buying higher-value items, then chip & PIN may be more important.
2. Choose an All-in-One Terminal
Ensure the reader can accept:
- Contactless cards
- Mobile wallets (Apple Pay, Google Pay & Samsung Pay)
- Chip (EMV)
- Magnetic Stripe
3. Place Your Reader in a Convenient Place
Ensure your reader is easy for your customers to reach. Having a reader at a comfortable height and facing your customers can really reduce any fiddling.
4. Clear Signage
A small sticker or sign stating 'Tap, Insert, or Swipe Here' will remove any confusion. This small change can speed up your payments.
5. Train Your Staff
Ensure your staff can answer basic questions. Where should they tap? What if their card is declined? How do they give a refund? Having a confident cashier can make the whole process feel smoother.
6. Test
Complete a few small payments using different payment methods. Ensure you can see your receipts, the internet is good, and the tipping screen is clearly visible.
Best Practices for Security
Whilst people may not understand the technology, they will care about their safety. Below is how each payment method compares.
- Swipe – Static data means this is the least secure.
- Chip – Unique codes are created for every transaction. Stolen data can’t be used again.
- Tap (Phone/Watch) – Tokenisation & device authentication (Face ID, fingerprint & passcode).
As a business owner, make sure:
- Your terminal has updated software.
- You use a payment provider that handles encryption & compliance.
- Follow PCI DSS requirements. Your processor can help you do this.
- Never store card numbers.
- Train your staff to recognise any suspicious activity (e.g. a customer trying multiple cards).
Tip: Whilst having good hardware is important, having good habits is also key.
Common Mistakes Businesses Make
These can be easy to slip up on. Take notes:
- Not offering contactless – This can save you a few dollars but can cause a loss of convenience.
- Hidden reader – If your customers can’t see the reader, they won’t be able to use it.
- Poor internet – A poor internet connection can cause payments to freeze. Ask your provider how the terminal will act if it loses internet.
- Unexpected charges – People get frustrated with surcharges and minimum charges. If you do have these, check your local laws and card network requirements. Be clear.
- No cash – Some customers still prefer to pay with cash. Some places may have rules around this. Check what applies to you.
- No receipts – Many people like to receive a digital receipt via email or text. Some like paper receipts. Offer both if possible.
Conclusion
Customers won’t think about tap, dip, or swipe. They just want to pay quickly, safely and easily. To make this easy for them:
- Ensure you accept all common payment methods.
- Ensure your reader is easy to find.
- Keep prompts clear.
- Train your staff.
- Regularly check your setup.
Small changes can make a big difference to your customers' experience. The best payment method is one your customer doesn’t have to think about.
