The primary difference between CTLS (Contactless) and EMV (Europay, MasterCard, Visa) transactions is how data is transmitted and how the card interacts with the terminal.
- CTLS (Contactless) Transactions:
How it Works: The card or mobile device, using Near Field Communication (NFC), is tapped or waved near the payment terminal. The transaction occurs wirelessly via RFID (Radio Frequency Identification) technology.
- Speed: Faster, as the card does not need to be inserted into the terminal.
- Security: Tokenization and cryptography are used to protect card details, though transaction amounts are often limited for security reasons.
- Convenience: Suitable for quick payments like those in transit or retail, given the tap-and-go nature.
- Card Presence: The card only needs to be held close to the reader.
Examples: Apple Pay, Google Pay, Tap-to-Pay cards.
- EMV (Chip-Based) Transactions:
- How it Works: The card is inserted into the terminal, and the embedded chip communicates with the terminal to authenticate the transaction.
- Speed: Slower than contactless, as the card remains in the reader during the transaction.
- Security: Highly secure due to a unique transaction code generated by the chip for each payment, making fraud more difficult.
- Security Features: Often requires a PIN or signature for additional authentication.
- Card Presence: The card must remain in the terminal.
- Examples: Chip-and-PIN or chip-and-signature transactions.
Key Differences:
- Interaction Method:
- CTLS: Tap or wave the card/device.
- EMV: Insert the card.
- Speed:
- CTLS: Faster (tap-and-go).
- EMV: Slower (card remains in the terminal).
- Security:
- Both are secure, but EMV is seen as more secure for higher-value transactions.
- Transaction Limits:
- CTLS: Typically has a lower limit to minimize fraud risks.
- EMV: No cap, with PIN or signature required for higher amounts.
Both technologies enhance security and convenience in card payments, with the choice often depending on transaction value and setting.