An Electronic Data Capture (EDC) machine is used to facilitate debit/credit card payments. Read on to know how it works…
Usage of debit/credit cards have permeated into all aspects of our lives. Therefore, it is for merchants to offer these payment methods for goods/services purchased by their customers. For this, they need to install an EDC machine.
An EDC machine (also known as a card swipe machine) is a payment terminal provided by the bank on which the merchant can swipe or dip cards to receive payments. Since the card can be a debit card or a debit card, the machine is also known as a credit card swipe machine or a debit card swipe machine. Cards with embedded chips need to be dipped in the machine while cards without chips can be swiped.
Once a card is swiped/dipped, the EDC machine captures the essential information linked to the card. This includes the card name, card number, transaction amount, etc. It also records the name of the outlet where the transaction is made and
the date and time of the transaction.
The information so captured is transferred to the card issuer for authorisation purpose via telephone line or wireless internet. Post authorisation, the amount is transferred to the seller’s account.
Getting an EDC machine installed
- To get an EDC machine installed, the merchant needs to make an application with a bank providing the relevant service. Generally, there are two basic criteria necessary for approval:
- The applicant should have a valid commercial establishment.
- The business should be in existence for at least six months.
- Along with the application, the merchant would be required to submit certain documents, which include identity proofs, address proofs, business proofs, etc.
- There are some fees and charges applicable on an EDC machine, which include one-time charges on equipment and installation and fixed monthly charges.
With an EDC machine, not only the customer but also the merchant is relieved from handling cash! So pay smart, swipe your Debit Card .