What Is a Payment Terminal?
Payment terminals are devices used by goods or service providers to facilitate non-cash payments during transactions. These include credit card payments, electronic money transactions, barcode payments, and QR code payments. Barcode payments typically involve customers displaying a barcode on their smartphones for scanning by the terminal, while QR code payments use a two-dimensional barcode for transactional information, scanned via customer smartphones. For simplicity, we refer to both these methods as barcode payments in this context.
Applications of Payment Terminals
Payment terminals are widely used for transactions without cash. They enable credit card payments for high-value purchases, eliminating the need to carry large sums of cash. Electronic money transactions, popular at station kiosks and vending machines, offer convenient, coin-free shopping experiences. Barcode payments, conducted through smartphones, facilitate cashless daily transactions by allowing funds transfer via internet banking.
Working Principles of Payment Terminals
Credit card terminals read customer information embedded in the magnetic stripe of cards. Electronic money transactions use cards or smartphones with IC chips, deducting the transaction amount from the preloaded funds when brought near an electronic money reader. Barcode payments involve scanning a customer’s smartphone-displayed barcode or QR code, with the customer inputting and transferring the purchase amount to the payment processor.
Varieties of Payment Terminals
There are various types of payment terminals: credit card readers, electronic money transaction devices, and barcode scanners. Modern terminals often combine two or more of these functions. However, their integration into cash registers and point of sale (POS) systems, which manage overall sales, is crucial for a comprehensive understanding of their role.
Choosing a Payment Terminal
Choosing a payment terminal depends on the desired payment methods. While non-cash payments offer customer convenience and security, establishments must consider the costs, such as service and rental fees, against the benefits of increased sales and customer satisfaction. Supermarkets might offer multiple payment methods, whereas some may opt for cash-only transactions to lower costs. High-value locations like airports or department stores may prefer credit card services, while areas with prevalent electronic money usage could benefit from compatible terminals. The COVID-19 pandemic’s impact on cashless payment preferences has also increased the demand for barcode scanner-type payment terminals.