Do you think that digital payments are a scam just because your company is a physical point of sale? We are determined to change your mind by the end of this post.
The fact is that the digitalization of buying and selling relationships is here to stay. Even in traditional commerce, it is already possible to observe this growth trend. Currently, Brazil occupies sixth place in the ranking of growth in online sales , according to an article by TecMundo .
The time has come to change the subject and leave behind the limitations of traditional card machines. After all, consumer behavior has changed and it is up to companies to keep up and adapt to these changes. Let’s go!
First of all, here is a brief context about the card machine market in Brazil and around the world, as well as a summary of the evolution of cards and machines over the years.
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Card machines: how they came about and the main milestones in history
The first card machine was not russia whatsapp number data and did not depend on the internet. Its mechanism was mechanical and served to print the card image on purchase receipts. Therefore, companies had to call the acquirer and ask for the transaction authorization code.
Over time, machines with magnetic stripe readers appeared , making everyone’s life easier. After all, all you had to do was swipe your card over the reader for the transaction to be authorized, via dial-up internet.
Later, with the evolution of cards, the machines began to receive chip readers . Later, other connection options, such as internet cable , Wi-Fi , mobile network ( 3G/4G/5G ) , Bluetooth and NFC (payment by contacting the card or cell phone) began to gain ground.
What is a card machine and how does it work these days?
A card machine, also known as an osha published hazard communication standards (hcs) series payment terminal, is a tool widely used by merchants and retailers to charge their customers and make debit and credit sales .
In general, after the seller informs the purchase details, such as product and value, the customer simply needs to bring the card closer to or insert it into the device and enter the password to make the payment.
Paying just by touching the phone: this was something unthinkable until then, if we look at the history of machines, right?
Among the main characteristics and conditions that may vary are:
- wired vs. wireless;
- quantity and types of flags accepted;
- whether it accepts meal/food cards or not;
- fees charged;
- accepted connection types (Wi-Fi, 3G/4G/5G, Bluetooth);
- whether it needs to be connected to a cell phone or works independently;
- whether it has contactless payment technology or not.
Card machine operators are also called acquirers . They communicate with card brands and pass on the money received through debit and credit card transactions to sellers.
To perform this service, acquirers charge fees and set a deadline for transferring the money. Debit cards, for example, can take up to 3 business days on average.
As for credit, the terms may vary depending on the plan chosen. Generally, the amounts are transferred within an average of 30 days. To receive the amount in less time, it is possible to contract the anticipation of receivables , a paid service that allows you to receive the money in advance.
What is the future of card machines in times of Pix and digital platforms?
According to a survey carried out by the saultdata Electronic Commerce Association (ABComm), in partnership with Neotrust, growth in online sales in 2020 was 68% compared to 2019.
According to a report by the Brazilian Association of Credit Card and Services Companies (Abecs), remote purchases using cards increased by more than 30% in 2020 and boosted retail. This number includes remote transactions with credit cards, debit cards and prepaid cards.
To give you an idea, in the last quarter of 2020, 1 out of every 3 credit card transactions was made remotely. In other words, the COVID-19 pandemic acted as a driver for the digitalization of payment methods.