When you tap to pay, what happens?

Tap to pay is increasingly becoming the preferred way to pay. It’s easy, secure and convenient compared to most other ways to pay. But have you ever wondered, when you tap your contactless card or mobile wallet to pay for groceries, a transit ride or your morning latte, what actually happens?

Let’s take a peek at the trip a payment makes in the split second between tap and approved.

The tap

Say you’re at the airport and realize you left your earbuds at home. Time to hit the gift shop.

New headphones ring up for $50. You pull out your Visa contactless card to tap the payment terminal and this kicks off the authorization process.

Contactless payments use Near Field Communication (NFC) technology, allowing the payment terminal to read your payment information within 2 inches of your card or mobile device.

(But don’t worry: you’re not just paying for anything that’s 2 inches away. Contactless-enabled terminals can only communicate with one card at a time, and a merchant has to initiate the transaction, so you won’t accidentally pay if you just happen to be in close proximity to a terminal.)

The technology transmits your payment information, like your account number, expiration date and a one-time transaction-specific code that is extremely effective in reducing fraud.

Transaction in flight

First stop: The gift shop’s bank receives your transaction information via VisaNet, our global payment processing network with data centers around the world, which scans it and puts it through a rigorous checkup.

VisaNet detokenizes your transaction information and uses machine learning and advanced algorithms to analyze myriad data points to determine the likelihood of fraud, helping separate the good transactions from the bad ones. Visa’s AI-based risk analytics prevents tens of billions of dollars in fraud annually.

(And if the purchase with your contactless card or mobile wallet was not authorized? Visa’s Zero Liability Policy[1] means you’re not responsible for the fraudulent charge and you can feel secure.)

All in a blink

Once your risk score is deemed low, VisaNet sends the transaction to your card-issuing bank, where it may go through another scan and check.

The card-issuing bank lets VisaNet know you’re good to go and VisaNet alerts the gift shop’s bank that you’re approved. And that’s it. The transaction completes, having traveled all that way in about a second. And you have new headphones in time for your flight.

Want to learn more about tap to pay? Check out these resources:

• Read more about Contactless Payments for consumers, issuers and merchants.
• Learn how to tap to pay.
• See how tap to pay is letting transit riders pay their fare.
• Check out how Visa is turning smartphones into point-of-sale devices with tap to phone.

[1] Visa’s Zero Liability Policy does not apply to certain commercial card and anonymous prepaid card transactions or transactions not processed by Visa. Cardholders must use care in protecting their card and notify their issuing financial institution immediately of any unauthorized use. Contact your issuer for more detail.