More and more customers are choosing cashless payments these days. The convenience of it all makes it a higher demand for merchants, of all sizes, to be ready to accept and meet these demands.
More and more customers are choosing cashless payments these days. The convenience of it all makes it a higher demand for merchants, of all sizes, to be ready to accept and meet these demands. A rise in this trend was already visible in 2014 and 2015, where the turnover of transactions increased to 7 billion Euros, whereas cash transactions continued to drop.
Merchants can display the logos or pictograms of the accepted payment types right at the shop entrance. Paying with credit or EC cards is usually widely spread, and can be recognised at the shop entrance through a blue “e” and red “c”. Following this, is a pictogram of the Electronic Cash PIN-Pad, which indicates that the customer would have to enter his PIN code for EC card payments.
Merchants can choose between different payment processes for when a customer uses his card at an EC terminal.
Electronic Direct Debit: The customer is asked for his signature. The merchant compares the signature on the receipt to the signature on the back of the customer’s credit card. There are no further security checks needed. The customer’s signature gives the merchant permission to debit the invoiced amount. Should the customer not have enough funds on his current account, or if the customer revokes the transaction, the merchant does not receive the payment.
Many merchants prefer to use a more secure card payment system, such as electronic cash or a girocard with a chip. With Electronic Cash, the cardholder must enter his PIN into the card reader. After entering the PIN, the terminal device communicates with the bank and only gives clearance if there are sufficient funds in the account. There are also so-called cash cards, where the chip of a giro card can be loaded with funds or credit balance. Payments with a money chip are only possible when sufficient funds are available.
The customer chooses to pay by card and inserts their card into the terminal device. The first check done by the system is the validity of the card. Following that, the customer is asked to enter their PIN.
The cardholder’s bank handles the authorization of the amount. If the authorization is positive, a message appears on the display of the terminal device that the payment was successful, the customer may then remove his card from the device. Transactions like these are always free of charge for the customers, however the merchants bear the fees agreed in a contract.
Payments by both credit card or giro card are processed quickly. The customer does not need to withdraw cash from an ATM or at the counter of their bank, and they are able to make impulse purchases.
There are also advantages for merchants when they offer card payments in addition to cash. Customers are more likely to spend more when they are tempted to this unplanned purchase. Due to the quick processing of modern card readers, the waiting time is reduced at the checkout or tills. On top of that, the merchant’s cash balance is reduced as well as the risk of loss or theft
If you, as a company or merchant, would like to stay on top of the game, think about it today and about how convenient, efficient and cost - effective card payments are.
Wallee offers you the best solution for accepting card payments. Get in touch with us today, and find out how we can help you be ready for your future. No monthly fees or minimum monthly turnover, wallee is your EC terminal solution to accept payments anywhere.
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