Why Are Some Credit Cards Turning Vertical In 2022| Benefits of Vertical Credit Cards?
Vertical credit cards make everyday shopping much easier and allow consumers and businesses to get approved quickly. Now you can swipe your card or pay at the point of sale more conveniently.
So, is it time to forget traditional payment methods like Chip & PIN and opt for contactless options? So, what should you keep in mind when trading with those options? Here is some information regarding this payment system to help you make an informed decision.
The recent credit and debit cards trend is a vertical movement, not new rewards or additional cashback. Here’s something I bet you didn’t see coming:
- Many banks are moving toward replacing horizontal credit cards with vertical credit cards.
- Tap-to-pay and chip readers have made portrait orientation more user-friendly.
How Does A Vertical Credit Card Work?
Vertical credit cards have a small chip inside that emits short-range radio waves. When you place your card a few inches from the vertical payment terminal, it transfers your payment information.
While it’s also known as”tap-to-pay”, credit cards. Instead, you usually need to place your card a few inches away from the payment station to initiate payment. Transactions can take a second or two, so don’t withdraw your card too quickly. When the transaction is complete, the payment terminal may beep, show a green checkmark, or flash a green color.
The merchant needs a terminal that supports contactless payment to use the vertical payment function. These payment terminals are rapidly becoming common in the United States and Canada, Australia, and Europe.
What are the Benefits of Vertical Credit Cards?
After learning how it works, vertical credit cards can seem too light to secure. Fortunately, you don’t have to worry about the security of your technology. First, let’s see what their benefits from the consumer perspective are.
1. Ease of Use
Faster transactions and shorter checkout lines are the most important benefits of vertical payments. Now cash handling at the checkout is not an issue. Also, there is no problem entering the PIN.
If your card is lost or stolen, you can bypass the fraudulent payment and fix it by freezing your account or contacting your bank. The fraud risk appears to be much higher if the user only needs to present the card to the reader. However, the security function is built-in so that the same transaction does not occur twice by mistake. Tapping uses a unique number for transactions that do not match the card. So, it can not decrypt card-related details and numbers. Also, if a small limit is set, it will protect the customer from larger unauthorized purchases if not changed.
3. Safer Transactions
Contactless or vertical technology is more reliable and secure than other payment methods. Chip technology protects users from fraudulent purchases through encryption and dynamic data technology.
4. Loyalty Benefits
Tap-to-pay payments offer loyalty benefits to users when they make a payment through smartphones. These vertical cards automatically offer discounts and loyalty points at checkout. Some banks even offer cashback and rewards when using contactless payment features.
5. Suitable For Overseas Travel
Many of us are currently unable to travel abroad. Still, another benefit of contactless cards will become apparent when international travel resumes. Chip and PIN technology has become so common abroad, especially in Europe and Australia.
Many self-centred ticket machines require a chip and PIN card or contactless payment. If you don’t have a chip and PIN card, a contactless credit card may be your only payment method.
Now, What Will Be Their Benefits From A Business Perspective?
1. Best Operational Efficiency
Vertical adoption is faster and requires less labor. Contactless payments reduce businesses’ time using card machines or checking out cash.
2. Better Customer Service
Research shows that contactless payment companies earn loyalty by offering smoother and faster payments to their customers. Stores can also optimize their loyalty programs and improve customer relationships.
3. Fraud Prevention
Vertical payment technology is secure and encrypted to prevent hacking attempts. Increased transaction security allows businesses to receive money without disputes. Additionally, most issuing banks protect tap-to-pay payments from fraud.
Are Vertical Credit Cards Replacing Swiping Cards?
The pandemic has also helped drive the transition as smart chip cards reduce checkout times. It also reduces customer contact with card readers. Vertical cards promote a smoother user experience by mimicking how customers typically handle cards. Smart chip cards are used more often than other types of cards. Since 2015, in the United States, chip readers and vertical credit cards are gradually growing.
Banks That Issue Vertical Credit Cards
You may have just learned about it, but vertical credit cards are quickly becoming the standard in the United States. Currently, there are more than 190 million Visa vertical credit cards in circulation. They expect that number to reach 300 million by the end of the year. Most major US credit card issuers now send contactless cards by default.
According to American Express, “most of the American Express products have vertical technology”. It advises cardholders to “look for the vertical symbol on the back or front of the card.” Your next renewal credit card will have this feature if you don’t already have a tap-to-pay credit card.
Bank of America
Bank of America started issuing vertical credit cards by mid-2019. But they are only providing these cards in New York, San Francisco, and Boston. Now users can use all recently published Bank of America credit cards for tap-to-pay checkouts.
Even before the COVID-19 pandemic, vertical credit cards are ready to take roots in the US. This payment method is faster than driving a credit card chip and safer than swiping a credit card strip. But ultimately, it may be the “tap-to-pay” aspect that forces us to accept payment methods.
Now that you know how vertical credit cards work, take a closer look at them and see which ones are vertical. If you don’t already have a vertical credit card, now is the time to contact your bank and request a tap-to-pay card.