In this digital, e-commerce driven world, having efficient technology in your business is vital for both customer experience and productivity. As more ways to pay are invented, it’s imperative that you stay updated on current emerging technologies. A great example of this is electronic draft capture or EDC. With more clients choosing to pay using their cards, you need a way to accept such payments. For this to happen, you need the best EDC machine. Here’s everything you need to know about their function, necessity, and advantages.
What are EDCs?
Simply put, EDC is remote deposit capture. When a user pays for a purchase using their card, or a digital wallet, their banking information is retrieved using EDC technology, and the amount due is captured. After the funds are secured through this online payment gateway system, they are transferred to your account, and the process is complete. Essentially EDC is the point of sale step that finished the transaction. Clients can choose to pay through their debit or credit card, QR code, UPI, PPB, and Net Banking.
EDC is often confused with credit card authorization. When a purchase is made, the latter confirms the buyer’s account’s ability to handle the transaction. This means ensuring it has enough money to cover the cost of the purchase. However, the money is not transferred to your account yet. EDC, on the other hand, happens after authorization; it is the actual electronic transfer of the funds to your account.
How it works
The best EDC machines make it easier to retrieve money from a buyer’s account. In a POS (point of sale) transaction, the EDC is integrated into the POS system. You have to enter the items purchased, calculate the total then ask the buyer to choose a payment option. If they choose to pay via card, they will then swipe their card at the POS terminal. This terminal has incorporated EDC tech through a magstripe reader, allowing it to capture the card details. After authorization from the buyer, the funds are transferred to your account. However, this can take up to a few days.
Benefits of electronic deposit capture
It addresses your customers needs
Even before the pandemic, more and more customers were opting to pay for purchases using their cards. Carrying cash around is no longer necessary or appealing, and clients expect to be able to pay by card when they get to your store. This makes having the best EDC machine key to running a successful business.
It improves sales
Since customers can purchase things without having cash in hand, you are more likely to make more sales. A lot of the time when a client leaves claiming they will return, they don’t. Meaning you missed a great sale. However, since they can pay via card, you can still make the sale. Additionally, it encourages impulse buying.
Your cash flow improves
Unlike cheques, card payments clear a lot faster, meaning you get your money quicker. However, how quickly they clear will depend on several factors such as the type of transaction: was it in person or online? Additionally, it will also depend on the merchant agreement you have with the bank.
It’s safer
Using POS card Terminal offers two levels of security. First, your transactions are done electronically, meaning there’s lease chance of fraud. The cards are first checked to see if they are valid and if they are reported stolen or lost. Second, since you are dealing in more non-cash transactions, you hold less cash on the premises, which reduces the chance of robbery.
EDCs are an essential part of every commerce-based business since electronic payments cannot happen without them. As more consumers opt for non-cash payments, EDC is becoming the key to online payment gateway systems. Its speed and convenience are quickly making this payment option quite popular. Now that you know the perks of using EDCs, why not get one today.
