How to Accept Contactless Payments: A Step-by-Step Guide for Merchants

Contactless payments, also known as Tap to Pay, allow customers to securely transmit payment information from their credit card or digital wallet via NFC (Near Field Communication), rather than swiping a card. For instance, when a customer pays in-store by tapping a chip-enabled credit card or using a digital wallet on their smartphone or smartwatch, this is called a contactless payment.

According to a Mastercard survey, more than half of Americans now use contactless payments.^[1]CNBC. “More than Half of Americans Use Contactless Payments.” Accessed February 20, 2026. With customers accustomed to retailers offering convenient payment options, implementing contactless payments is crucial to keeping shoppers happy.

This step-by-step guide covers everything you need to start accepting contactless payments, from setting up your account to letting your customers know about your new payment option.

• Implementing contactless payments often requires an NFC-enabled device, a compatible payment processor, and a merchant account.
• Paying with digital wallets like Apple Pay and Google Pay is becoming increasingly popular among consumers.
• Contactless payments are among the most secure payment methods, and businesses that accept them must adhere to strict PCI DSS regulations.

How To Accept Contactless Payments (Step-by-Step)

As a business owner, you’ll need to follow five basic steps to start accepting contactless payments. 

Step 1 – Set Up or Confirm a Merchant Account or Payment Processing

To accept contactless payments, you’ll need a merchant services provider or payment processor that supports NFC-enabled transactions.

If you don’t already accept card payments, you’ll need to apply for merchant services. This typically involves submitting business details, financial information, and underwriting documentation.

If you already have a merchant account and accept credit cards, confirm that your current processor and hardware support NFC mobile payments (NFC). In many cases, upgrading your terminal or enabling contactless functionality is all that’s required.

Step 2 – Choose the Right Tools

Once your payment processing is in place, the next step is ensuring you have NFC-enabled hardware or software to accept contactless payments. For brick-and-mortar retailers, there are a variety of in-person device options:

• Mobile Readers & NFC Devices– Bluetooth-enabled card readers pair with your smartphone or tablet and often support tap-to-pay (NFC) transactions. Some models are compact and portable, while others are countertop-style terminals. These devices allow customers to tap contactless cards or mobile wallets without requiring a full POS system upgrade.
• Point of Sale (POS) System – A more advanced and costly solution: a countertop POS lets you accept and process all types of payments, including card, cash, and contactless.
• Smartphone – Vendors on the go with an NFC-compatible smartphone can use an app for accepting mobile payments without any additional hardware.

With hardware in place, you’ll need to determine which digital wallets you want to support. The most common ones include: 

• Apple Pay 
• Samsung Pay
• Google Pay

Accepting the above digital wallets isn’t just an asset for in-person transactions. Supporting digital wallets is also beneficial for eCommerce companies, as customers can use Apple Pay, Samsung Pay, and other digital wallets to check out online.

Step 3 – Ensure System Compatibility

The tools you use to accept contactless payments need to be compatible with your existing systems. For those with older POS systems, an upgrade may be required to enable wireless credit card processing. 

Mapping out your current infrastructure is a good place to start. From there, you’ll be able to identify the technical requirements needed and spot potential integration gaps. Evaluate your processor’s tech to see whether it offers Application Programming Interfaces (APIs), Software Development Kits (SDKs), or native integrations. The final step is to verify that all changes meet industry standards and regulations. 

Before you go live, thoroughly test the system and evaluate the results. For example, if a food truck wants to implement contactless payments. They will need to verify that their current network and payment processor support the mobile reader they’ve chosen to accept payments. Next, they must run tests to determine if payments are processing correctly, data is syncing, and encryption is functioning.

Step 4 – Set Up Secure & Compliant Payments

PCI compliance is a big part of credit card processing, so if you are already accepting credit card payments, you are likely already compliant. However, it’s worth noting that your new contactless system must also comply with the same regulations. 

PCI DSS requirements include protecting stored cardholder data, maintaining a firewall, using antivirus software, monitoring network access, and more. ^[2]PCI Security Standards Council. “PCI Security Standards Overview.” Accessed February 20, 2026. To meet these requirements, you’ll need to use security tools like tokenization, encryption, and authentication.

Mobile wallets already have decent protection, often using biometric verification and encryption, making them a great choice for high-risk merchants looking to improve transaction security. However, as a business owner, you’ll still need to ensure that your security tools, as well as your payment processor’s tools, provide adequate protection. 

Tap to Pay Merchant Checklist

If you’re looking to implement contactless payments in the near future, here’s a quick checklist to help you get started:

• Confirm Hardware – Choose and procure the hardware you need for accepting contactless payments, including mobile readers or POS systems.
• Verify Compatibility – Confirm that your new hardware (or software) is compatible with your current system. This includes checking if your existing terminals and payment processor support NFC payment options.
• Set Up Wallets – Choose the digital wallets you’d like to support, register for any necessary services, and configure your payment processor as needed.
• Test System – Run through several simulations, ensuring you test all payment options and scenarios, including how declined payments are handled.
• Review Security Setup – Add a passcode or other security features to protect new devices, evaluate your existing security setup, and make adjustments as needed to meet all compliance requirements.
• Notify Customers – Post appropriate signage or banners to tell customers that contactless payments are now accepted.   

After you’ve implemented NFC payments, you’ll want to keep a close eye on your transaction history. This helps you ensure your system runs smoothly and lets you see how contactless payments impact your profits. Just remember, while an increase in business is great, as your transaction volume goes up, so too will your PCI compliance requirements.^[3] Exabeam. “The 4 PCI Compliance Levels Explained.” Accessed February 20, 2026.

How PaymentCloud Helps Businesses Accept Contactless Payments

To stay competitive as a small business, it’s important to accept contactless payments, and PaymentCloud is here to help. Our merchant accounts are secure, tailored to high-risk businesses, and designed to scale with your business.

We support a wide range of contactless payment solutions, providing your business with the modern payment infrastructure it needs to thrive. Learn more about PaymentCloud’s payment solutions now.