How Does Tap to Pay Work? NFC, Security and Fees (2026)
Tap to pay works when a customer holds a contactless card, phone or watch within 1 to 2 inches of your phone, which reads the payment over near-field communication (NFC) and sends it to the card's bank for approval in seconds. Each tap carries a one-time code, and phone wallets swap the real card number for a token, so the data can't pay for a second purchase.
For you as the seller, the phone is the card reader. JIM charges 1.99% per Tap to Pay sale with no fixed fee, so a $50 sale costs $1.00 and the money lands in your Jim balance in seconds.
This guide is updated every year with current card network and provider rules. Last reviewed: November 2026.
What happens step by step when a customer taps to pay?
Count a tap sale as done only when your screen says Approved. The exchange runs in five steps, and two of them belong to you.
Got a try-again message? Ask the customer to hold the card or phone still for a few more seconds. Google notes that moving too fast, holding the phone too far away or a thick case can break the NFC signal in the middle of a payment.
What is NFC, and why does the card have to be so close?
NFC is a short-range radio link built into contactless cards and most recent phones, and its short reach works as a safety feature. Visa says a card or phone must be within 2 inches of the reader, and the merchant has to start the charge first, so nobody pays by walking past your phone.
In practice, that protects the customer at your counter too. A contactless reader talks to one card at a time, so a customer who taps a whole wallet pays with one card, and an accidental double tap won't bill them twice. Cards, Apple Pay and Google Pay all use the same NFC technology, which is why one phone accepts all of them. For the radio side in more detail, read how NFC mobile payments work.
How do tokenization and one-time codes keep tap to pay secure?
Tap to pay beats a swipe on security because no tap hands over data that works twice. What travels from the customer to your phone depends on what they tap.
JIM meets the Payment Card Industry Data Security Standard, or PCI DSS, the security rulebook the major card brands set for anyone who handles card data, and holds version 4.0.1 certification. Your part is the routine: keep a screen lock on, keep your phone's software up to date and never jailbreak or root it. You can't type a customer's card number into JIM either, so full card data never passes through your hands.
What do you need to accept tap to pay on your phone?
You need three things: a compatible phone, an approved seller account and customers with contactless cards or wallets. You don't need a card reader, a terminal or a monthly plan.
Selling without an LLC? Read taking card payments as a sole proprietor. To weigh other ways of getting paid in person, see contactless payment solutions for small businesses.
How much does tap to pay cost a small business?
Expect a percentage of each sale, and with many providers a fixed fee on top. JIM charges 1.99% per Tap to Pay sale with no fixed fee, no monthly fee and no reader to buy, so a $10 sale costs $0.20.
| Provider | In-person card rate | Fee on a $50 sale | 80 sales of $25 |
|---|---|---|---|
| JIM | 1.99% | $1.00 | $40.00 |
| Square (Free plan) | 2.6% + 15¢ | $1.45 | $64.00 |
| PayPal Point of Sale | 2.29% + 9¢ | $1.24 | $52.80 |
| SumUp (standard rate) | 2.6% + 10¢ | $1.40 | $60.00 |
Source: Square's official pricing page, accessed November 2026. Source: PayPal's official pricing page (PayPal Point of Sale card-present rate), accessed November 2026. Source: SumUp's official pricing page, accessed November 2026. JIM: jim.com/pricing and the JIM Help Center fee table. Example math: each sale's fee rounded to the cent, then multiplied by the number of sales.
Suppose a coffee cart takes 80 taps of $25 in a month, $2,000 in total. JIM fees on that month come to $40.00, and with no fixed fee the cost stays at 1.99% even on a $5 latte. Read how card processing fees work to see what goes into each rate, or compare credit card processing options for small businesses.
Where does the money go after a tap payment?
With JIM, every approved tap lands in your Jim balance in seconds, and the free virtual Jim Card spends it right away.
Your balance sits with Lead Bank, Member FDIC. The Federal Deposit Insurance Corporation, or FDIC, insures it up to $250,000 if Lead Bank fails and specific deposit insurance requirements are met. JIM is a financial technology company, not a bank.
Is tap to pay on a phone right for your business?
Tap to pay on a phone fits sellers who work alone and take most payments face to face, from a market stall to a home repair visit. Use this table to check your setup.
| Profile | Deciding criterion | JIM when... | Consider an alternative if... |
|---|---|---|---|
| Mobile seller, tickets under $100 | Fee per sale | You take taps and spend from the Jim Card | You need chip-insert or swipe hardware |
| Seller without a bank account | Where the money goes | You want to sell and spend without opening a bank account | You need to withdraw cash at an ATM |
| Business structure | Who can sign up | You are a sole proprietor or single-owner LLC | Your business is a corporation |
JIM doesn't support corporations or chip-insert hardware, so a counter with staff and card terminals needs a broader point-of-sale setup. If you sell solo with a phone, JIM covers contactless cards, Apple Pay, Google Pay and Samsung Pay at 1.99% per sale, with the money in seconds.
How do you take your first tap to pay sale?
Run a $1 test sale on your own card before your first customer. You saw that a $50 tap costs $1.00 with JIM and that a $2,000 month of $25 sales comes to $40.00 in fees, with no reader or monthly plan.
Download the app, create your seller profile and wait for approval. Then tap your own card for $1 and watch it land in your Jim balance. See how JIM Tap to Pay works on your phone and every fee at jim.com/pricing.
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