Payment Processing

Author Topic: Payment Processing  (Read 1884 times)

Offline ChandasalwadiTopic starter

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Payment Processing
« on: 05-05-2021, 04:34:22 »
Why can't stores transact at the physical POS (the same way as an internet consumer would) and eliminate the need for POS terminals. Is this a card present/card not-present issue?
Chanda Salwadi
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Offline Lishmalinyjames

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Re: Payment Processing
« Reply #1 on: 05-26-2021, 08:10:00 »
There are a few reasons why physical stores still use POS terminals instead of transacting the same way as online consumers. One primary reason is the security aspect. Card-present transactions at physical stores involve the use of EMV (Europay, MasterCard, and Visa) technology, which adds an extra layer of security by verifying the card's chip. This helps prevent fraud and protects against counterfeit cards. On the other hand, card-not-present transactions, which are common in online purchases, rely on different security measures like CVV codes and address verification.

Additionally, using POS terminals in stores allows for more efficient and convenient payment processing. It enables seamless integration with inventory systems, accounting software, and other business operations. POS terminals also support various payment methods, including cash, credit/debit cards, contactless payments, and mobile wallets. These capabilities make it easier for businesses to manage transactions, track sales, and provide a smooth checkout experience.

here are a few additional factors that contribute to the continued use of POS terminals in physical stores:

1. Transaction Speed: POS terminals are optimized for quick and efficient payment processing. They can handle high volumes of transactions, ensuring that customers experience minimal wait times during checkout.

2. Integration with Peripherals: POS terminals often come equipped with peripherals such as cash drawers, barcode scanners, receipt printers, and customer displays. These integrated components streamline the overall transaction process at the point of sale.

3. Offline Capabilities: In many cases, physical stores may face intermittent internet connectivity issues. POS terminals have the ability to operate offline, allowing merchants to continue processing transactions and maintain business continuity even if internet access is temporarily unavailable.

4. Compliance with Regulatory Standards: Different regions may have specific regulations regarding payment processing, security, and record-keeping. POS terminals are designed to comply with these standards, providing assurance to both businesses and customers that transactions meet legal requirements.

5. Customer Perception: The use of dedicated POS terminals in physical stores helps establish a sense of trust and professionalism. Customers may feel more secure knowing that their payment information is being processed through a dedicated device designed specifically for that purpose.

While there may be advancements in payment technologies like mobile wallets, contactless payments, and biometrics, the existing infrastructure and the familiarity of using POS terminals make them a reliable and widely adopted solution for physical store transactions.

The shift in technology based POS has affected the businesses largerly as it enables them to keep the record in track and in one place.
« Last Edit: 07-28-2023, 11:25:15 by Sevam »


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