A cashless society has become a growing trend, leading customers to prefer non-cash payments for their daily transactions. Electronic Data Capture (EDC) machines are one of the primary tools facilitating these non-cash transactions when customers shop at stores.

Business owners should begin to understand this device to streamline non-cash payments. While it may sound complicated, there is no need to worry; you can grasp the basics through the explanation of EDC machines summarized in the following article. Read until the end!

What is an EDC Machine?

An EDC (Electronic Data Capture) machine is an electronic device, often shaped like a small terminal, used to process card-based payment transactions—such as credit cards, debit cards, and e-money. Technological advancements have enabled modern EDC machines to accept not only card-based payments but also digital payments like QRIS.

The machine reads the customer's card data and sends it to the bank's system or payment service provider for authorization to complete the transaction based on the entered payment amount. Once the transaction is approved, funds can be liquidated into the business owner's account within a pre-determined timeframe (e.g., T+3 working days).

How EDC Machines Work

To make a payment, a customer hands their card to the cashier. The cashier then processes the payment according to the total bill. Next, the customer confirms the payment by entering their PIN using the buttons on the EDC machine.

The payment is finalized if the PIN entered is correct. Generally, a receipt will be printed from the machine to be given to the customer as proof of payment, while a copy can be kept by the cashier for business documentation.

With evolving technology, these machines can also be used for QR-based payments like QRIS. The cashier enters the bill amount, and a QR code will appear on the machine's screen. The customer then scans the code using their preferred payment app (such as mobile banking) and enters their app PIN. If successful, a notification will appear on the business side via the EDC, while the customer will see a success notification in their payment application.

Benefits for Business

EDC machines are designed to improve transaction quality and effectiveness through technology. Here are the benefits your business can experience:

1. Accelerated Transactions

Business owners no longer need to worry about providing change, as all transactions are handled digitally. This cuts down on time spent counting cash and manual reconciliation, especially during peak hours.

2. Expanded Payment Options

Offering diverse payment choices helps attract customers with different preferences, which can drive sales growth by widening your potential customer base.

3. Reduced Risk of Counterfeit Money

Cash-based businesses are often targets for counterfeit currency. By adapting to non-cash payments, business owners can eliminate this risk, as all transactions are recorded automatically by the system.

4. Simplified Data Recording

Since EDC transactions are recorded automatically, it minimizes data entry errors and simplifies reconciliation for staff or administrators.

5. Increased Customer Satisfaction

Flexible, fast, and secure payments enhance the shopping experience. Satisfied customers are more likely to become loyal, helping your business remain relevant in the long run.

Alternatives to EDC Machines

While EDC machines provide tangible benefits, payment service providers continue to evolve to meet business needs. In addition to physical machines, business owners can now utilize online platforms.

Connect your business to various non-cash payment methods online using iFortepay’s Payment Gateway service. With just one integration, your business website can connect to various payment methods. You can accept payments directly on your website without needing face-to-face interaction, and manage all transaction data through an integrated dashboard.