Mutt
Professional
- Messages
- 1,459
- Reaction score
- 1,251
- Points
- 113
Contents
The convenience of non-cash payments by bank cards has become so firmly established in our lives that we have begun to slowly forget what the clink of coins and the rustle of bills in the wallet are. You can pay with a card for almost anything and everywhere. But this would be impossible if the outlet was not equipped with a specialized payment device, the so-called POS terminal. Such a terminal serves as an interface (border between different objects) between the buyer and the store, and allows you to pay for the goods using a "piece of plastic" - our card. At the same time, a lot of operations are performed, which an ordinary customer does not even think about - for him everything is transparent: he inserted the card, entered the PIN code (if required) and saw “Approved” on the screen of the device.
POS terminal. What it is?
The abbreviation POS (abbreviation from English "Point Of Sale"). Accordingly, a POS terminal is a device that performs a number of functions for the successful operation of a retail outlet (for example, accounting and selling goods). Let's make a reservation right away. Often, a POS terminal is understood as an apparatus for accepting bank payment cards for payment - the one where we insert (swipe or lean) the card and enter the pin code. Actually, such a device will be discussed in our article.
In a broader sense, a POS terminal is a software and hardware complex that allows you to carry out all the necessary trading operations. Such a complex can consist of a monitor, a computer system unit, a receipt printer, a card reader (card reader) and a pin-pad (a separate keyboard for entering a pin code), a customer display, a keyboard, a barcode scanner, a cash drawer, etc. You can see all this at the workplace of the cashier of any large chain store, and you can safely attribute the POS- prefix to each of the equipment listed above. Such a terminal can be compared to an improved cash register, since the cashier can not only "punch" you the goods at the price indicated on its price tag and issue a check (go to any kiosk - they still work there the old fashioned way), but also do a lot of others operations.
For example, in large chain stores (Spar, Auchan, Walmart, Target, etc.), the cashier reads the price of the product by its barcode, and if the code is not readable, then the price of the product in the database is immediately searched for by the letter code. You have expressed a desire to pay by card - please. You have a bonus card - very good. The cashier will swipe her over the card reader and you will immediately receive a discount or cumulative bonuses. You forgot to take the package and decided to pay for it with small things in your pocket - no problem, the cashier will open the cash drawer and give you change if the coin is too large. And finally, you decided to abandon one heading - not a problem either. The money will be returned to you in cash, or they will come to your card after a while. All operations performed are time-stamped, after which a corresponding record is made in the database.
All of the above is the result of the work of a modern POS terminal, and the organization of payment by card is just a special case of its work. But in some cases, when in a small store it is necessary to organize the possibility of paying customers by bank cards, they do not use a whole complex of POS equipment (this is an expensive pleasure) connected with each other, but a separate independent payment terminal, which was discussed at the beginning of the article. It usually has a built-in printing device, and it can be completed with a remote keyboard. The principle of its operation when paying by card is the same as that of the terminal at the "point of sale" in a broader sense. We will talk about this further.
POS terminal device
A few words about what a bank card payment terminal is.
It includes:
The card payment device can be an independent POS-terminal or be a part of the complex that makes up the POS-terminal (in a broad sense). In the first case, the terminal can perform the functions of a cash register, which is a cheaper and optimal solution for a small store. Such a device must be included in the State Register of KKM (cash register machines) without fail. The payment terminal must be certified by international payment systems (Visa, MasterCard, our domestic MIR, etc.) for compliance with modern security requirements when carrying out transactions with bank cards.
By itself, a payment card terminal will be a useless thing if it is not connected to acquiring or, as they call it, processing. Acquiring is a banking service that allows merchants to accept cards for payment. As a result, funds from a bank card (more precisely, from a card account) of the buyer must be transferred to the seller's account. It is this process that is organized by the acquiring bank (and not only it is one), and the terminal itself is only a link in the chain of processes that make up a bank card transaction.
Usually, an agreement is first concluded with an acquiring bank that provides such services. He can also provide equipment (terminals) for payment by cards on a lease basis. Sometimes a store can buy a POS terminal together with an acquiring agreement with a bank, the terms of service of which are most favorable for it. For information, each acquiring bank offers its own terms of connection, in particular, it takes a commission from each operation on the card, which can be fixed or "floating". The commission depends on the turnover of the outlet (retail network) and can range from 1.5% to 4% of the purchase amount.
Principle of operation
Let's consider how payment is made by card using the POS terminal we are describing.
1. The buyer notifies the cashier about his desire to pay for purchases with a card. In this case, it makes sense to pay attention to which payment system card can be used to pay in the store. The logos of international payment systems (MPS), pasted in a conspicuous place near the cash register, will tell you about this. As a rule, any retail outlets accept Visa and MasterCard cards, as well as some other MPS, which are not very common in our country.
To pay for purchases, it is enough to have the required amount on the card account (or the credit limit on the credit card), otherwise the terminal will give an error. For large write-offs, you may have to show your passport for security reasons.
2. The cashier enters the purchase amount on the computer or at the terminal itself and invites you to insert the card into the pos-terminal.
3. The customer (or cashier) inserts the card into the chip card reader. If the plastic has a magnetic stripe, then the card is "rolled" in the appropriate reader, and if the card and the terminal support contactless payment technology, then the plastic is applied to the screen (payment up to 1000 rubles without a PIN code). The data is read from the chip / magnetic stripe. If necessary, you will be asked to enter a PIN. It depends on the priority of signing / entering the PIN on the card itself, set by the bank or by the holder himself, and on the terminal settings. Some retail chains, when the purchase amount is below a certain limit, refuse to enter the PIN code in order to reduce the time of customer service, but at the expense of security.
4. The data from the card and the purchase amount are transferred by the terminal to the processing center of the acquiring bank. This is the beginning of a banking transaction, which will go through several "instances" and get to the bank that issued your card, which must give permission for the purchase. That is, the authorization procedure must be completed.
5. Further, the transaction from the acquiring bank is sent to the data processing center (DPC) of the Ministry of Railways, where the card will be checked for presence / absence in the stop list, and in case of a positive verification result, it will be sent to the processing center of the issuing bank. If everything is in order with your card account (it has a sufficient limit) and the card has passed additional checks for legality, then your bank gives the go-ahead, which is expressed in assigning an authorization code to the operation being performed (i.e. the authorization procedure was successful).
Authorization may not be successful either. Then you can get one of the following answers:
7. The POS terminal finally sends a response to the processing center about the success of the payment operation.
For the buyer, the presence of a check indicates the fact of payment, and he leaves the store with the purchase. In fact, the money will not come to the store's account instantly. First, they will be transferred from the account of the acquiring bank (not from your card account!), But after a few days, or even after a week (up to 30 days, according to the current legislation of the Russian Federation and the rules of the Ministry of Railways), they will be transferred to the account of the acquirer from your account cards at the issuing bank. The corresponding amount on your card will be temporarily blocked. For more detailed information about a banking transaction, we refer you to the corresponding article.
Types of devices
By the nature of the execution, there are 2 types of terminals:
In the case of "trade" acquiring, when the direct contact of the cashier with the customer at the time of payment is meant (in any trade and service enterprises: shops, cafes, hairdressers, etc.), monoblock or modular POS terminals are used. It is about such devices that we talked about in the article. They can be stationary or portable.
In "mobile" acquiring, used to pay by cards at the exit (couriers, taxi drivers, foremen, etc.), so-called mobile POS payment terminals (mPOS) are used. They are a card reader connected to a smartphone using WI-FI or Bluetooth, and are controlled using a special mobile application installed on the phone. Such devices allow you to make payments from any bank card, and all the processing of transactions is carried out by any bank. For example, in the service www.pay-me.ru payments are processed by Alfa-Bank. Such a budget solution is suitable for small shops and businesses that are not yet ripe for the purchase of more expensive commercial POS equipment.
In Internet acquiring (aka virtual acquiring), when all card transactions are performed remotely on the website of an online store, so-called virtual payment terminals are used , which are a specially designed web interface that allows you to make payments on the network and pay for various services. This is a regular program running on the server of an online store and performing the same functions as the above terminals.
Additionally, we note that payment terminals can use various communication channels for remote connection: dedicated (wired) Ethernet, mobile GPRS communication, ADSL, etc. Usually, the faster and more stable communication, the more expensive it is to connect and operate.
The use of payment cards and POS-terminals relieves you and me of the problems associated with the circulation of cash. You no longer need to worry about the constant presence of money in the wallet, if it is on the card, and count the change. And the common phrase of the cashier “give without change” may soon become a thing of the past. And it is more profitable for the enterprises themselves to accept non-cash payments so that they do not once again collect the proceeds to the bank (and for the tax authorities it is profitable - all operations are at a glance). Therefore, a POS terminal is undoubtedly a device in demand and useful. Provided that at least minimal security measures are observed, of course.
P.S. We also recommend that you familiarize yourself with the article on the payment terminal - the “distant relative” of the device considered in this review.
(c) privatbankrf.ru
- 1. POS terminal. What it is?
- 2. POS-terminal device
- 3. How it works
- 4. Types of devices
The convenience of non-cash payments by bank cards has become so firmly established in our lives that we have begun to slowly forget what the clink of coins and the rustle of bills in the wallet are. You can pay with a card for almost anything and everywhere. But this would be impossible if the outlet was not equipped with a specialized payment device, the so-called POS terminal. Such a terminal serves as an interface (border between different objects) between the buyer and the store, and allows you to pay for the goods using a "piece of plastic" - our card. At the same time, a lot of operations are performed, which an ordinary customer does not even think about - for him everything is transparent: he inserted the card, entered the PIN code (if required) and saw “Approved” on the screen of the device.
POS terminal. What it is?
The abbreviation POS (abbreviation from English "Point Of Sale"). Accordingly, a POS terminal is a device that performs a number of functions for the successful operation of a retail outlet (for example, accounting and selling goods). Let's make a reservation right away. Often, a POS terminal is understood as an apparatus for accepting bank payment cards for payment - the one where we insert (swipe or lean) the card and enter the pin code. Actually, such a device will be discussed in our article.
In a broader sense, a POS terminal is a software and hardware complex that allows you to carry out all the necessary trading operations. Such a complex can consist of a monitor, a computer system unit, a receipt printer, a card reader (card reader) and a pin-pad (a separate keyboard for entering a pin code), a customer display, a keyboard, a barcode scanner, a cash drawer, etc. You can see all this at the workplace of the cashier of any large chain store, and you can safely attribute the POS- prefix to each of the equipment listed above. Such a terminal can be compared to an improved cash register, since the cashier can not only "punch" you the goods at the price indicated on its price tag and issue a check (go to any kiosk - they still work there the old fashioned way), but also do a lot of others operations.
For example, in large chain stores (Spar, Auchan, Walmart, Target, etc.), the cashier reads the price of the product by its barcode, and if the code is not readable, then the price of the product in the database is immediately searched for by the letter code. You have expressed a desire to pay by card - please. You have a bonus card - very good. The cashier will swipe her over the card reader and you will immediately receive a discount or cumulative bonuses. You forgot to take the package and decided to pay for it with small things in your pocket - no problem, the cashier will open the cash drawer and give you change if the coin is too large. And finally, you decided to abandon one heading - not a problem either. The money will be returned to you in cash, or they will come to your card after a while. All operations performed are time-stamped, after which a corresponding record is made in the database.
All of the above is the result of the work of a modern POS terminal, and the organization of payment by card is just a special case of its work. But in some cases, when in a small store it is necessary to organize the possibility of paying customers by bank cards, they do not use a whole complex of POS equipment (this is an expensive pleasure) connected with each other, but a separate independent payment terminal, which was discussed at the beginning of the article. It usually has a built-in printing device, and it can be completed with a remote keyboard. The principle of its operation when paying by card is the same as that of the terminal at the "point of sale" in a broader sense. We will talk about this further.
POS terminal device
A few words about what a bank card payment terminal is.
It includes:
- small display (usually with a liquid crystal screen);
- built-in reader system (for magnetic stripe and chip cards (smart cards));
- a keyboard for entering numerical data (entering a pin code and various service settings);
- processor and RAM (the device is a full-fledged mini-computer and operates on the basis of an operating system);
- GPRS modem for data exchange via cellular communication (optional);
- ports for connecting to the network and cash register (Ethernet, RS-232, etc.);
- device for printing receipts (optional);
- battery (optional).
The card payment device can be an independent POS-terminal or be a part of the complex that makes up the POS-terminal (in a broad sense). In the first case, the terminal can perform the functions of a cash register, which is a cheaper and optimal solution for a small store. Such a device must be included in the State Register of KKM (cash register machines) without fail. The payment terminal must be certified by international payment systems (Visa, MasterCard, our domestic MIR, etc.) for compliance with modern security requirements when carrying out transactions with bank cards.
By itself, a payment card terminal will be a useless thing if it is not connected to acquiring or, as they call it, processing. Acquiring is a banking service that allows merchants to accept cards for payment. As a result, funds from a bank card (more precisely, from a card account) of the buyer must be transferred to the seller's account. It is this process that is organized by the acquiring bank (and not only it is one), and the terminal itself is only a link in the chain of processes that make up a bank card transaction.
Usually, an agreement is first concluded with an acquiring bank that provides such services. He can also provide equipment (terminals) for payment by cards on a lease basis. Sometimes a store can buy a POS terminal together with an acquiring agreement with a bank, the terms of service of which are most favorable for it. For information, each acquiring bank offers its own terms of connection, in particular, it takes a commission from each operation on the card, which can be fixed or "floating". The commission depends on the turnover of the outlet (retail network) and can range from 1.5% to 4% of the purchase amount.
Principle of operation
Let's consider how payment is made by card using the POS terminal we are describing.
1. The buyer notifies the cashier about his desire to pay for purchases with a card. In this case, it makes sense to pay attention to which payment system card can be used to pay in the store. The logos of international payment systems (MPS), pasted in a conspicuous place near the cash register, will tell you about this. As a rule, any retail outlets accept Visa and MasterCard cards, as well as some other MPS, which are not very common in our country.
To pay for purchases, it is enough to have the required amount on the card account (or the credit limit on the credit card), otherwise the terminal will give an error. For large write-offs, you may have to show your passport for security reasons.
2. The cashier enters the purchase amount on the computer or at the terminal itself and invites you to insert the card into the pos-terminal.
3. The customer (or cashier) inserts the card into the chip card reader. If the plastic has a magnetic stripe, then the card is "rolled" in the appropriate reader, and if the card and the terminal support contactless payment technology, then the plastic is applied to the screen (payment up to 1000 rubles without a PIN code). The data is read from the chip / magnetic stripe. If necessary, you will be asked to enter a PIN. It depends on the priority of signing / entering the PIN on the card itself, set by the bank or by the holder himself, and on the terminal settings. Some retail chains, when the purchase amount is below a certain limit, refuse to enter the PIN code in order to reduce the time of customer service, but at the expense of security.
4. The data from the card and the purchase amount are transferred by the terminal to the processing center of the acquiring bank. This is the beginning of a banking transaction, which will go through several "instances" and get to the bank that issued your card, which must give permission for the purchase. That is, the authorization procedure must be completed.
5. Further, the transaction from the acquiring bank is sent to the data processing center (DPC) of the Ministry of Railways, where the card will be checked for presence / absence in the stop list, and in case of a positive verification result, it will be sent to the processing center of the issuing bank. If everything is in order with your card account (it has a sufficient limit) and the card has passed additional checks for legality, then your bank gives the go-ahead, which is expressed in assigning an authorization code to the operation being performed (i.e. the authorization procedure was successful).
Authorization may not be successful either. Then you can get one of the following answers:
- “Refusal” means that the requested amount is not confirmed by the issuing bank. One of the reasons is the lack of necessary funds on the account, but you can find out the exact reason for the refusal by contacting your bank. In this case, try to pay with another card, if available.
- “Withdraw” or “Withdraw - fraudulent” - this could mean that the card was used by a fraudster (for example, it was claimed that the card was stolen), or the card, in the opinion of the bank, has been compromised.
- “Request to the bank” - means that it was required to carry out additional authorization of the client by phone. The bank may request additional information about the cardholder, for example: passport number, bank name, address, code word, etc. The bank may not confirm the requested amount, i.e. "refusal" is possible.
7. The POS terminal finally sends a response to the processing center about the success of the payment operation.
For the buyer, the presence of a check indicates the fact of payment, and he leaves the store with the purchase. In fact, the money will not come to the store's account instantly. First, they will be transferred from the account of the acquiring bank (not from your card account!), But after a few days, or even after a week (up to 30 days, according to the current legislation of the Russian Federation and the rules of the Ministry of Railways), they will be transferred to the account of the acquirer from your account cards at the issuing bank. The corresponding amount on your card will be temporarily blocked. For more detailed information about a banking transaction, we refer you to the corresponding article.
Types of devices
By the nature of the execution, there are 2 types of terminals:
- Monoblock, which can perform all the necessary functions for payment by card, as well as a number of other functions;
- Modular, consisting of a system unit with the ability to select various input-output devices depending on the needs of the store. This is a terminal "in the broadest sense" that can perform any function, not just payment by bank cards.
In the case of "trade" acquiring, when the direct contact of the cashier with the customer at the time of payment is meant (in any trade and service enterprises: shops, cafes, hairdressers, etc.), monoblock or modular POS terminals are used. It is about such devices that we talked about in the article. They can be stationary or portable.
In "mobile" acquiring, used to pay by cards at the exit (couriers, taxi drivers, foremen, etc.), so-called mobile POS payment terminals (mPOS) are used. They are a card reader connected to a smartphone using WI-FI or Bluetooth, and are controlled using a special mobile application installed on the phone. Such devices allow you to make payments from any bank card, and all the processing of transactions is carried out by any bank. For example, in the service www.pay-me.ru payments are processed by Alfa-Bank. Such a budget solution is suitable for small shops and businesses that are not yet ripe for the purchase of more expensive commercial POS equipment.
In Internet acquiring (aka virtual acquiring), when all card transactions are performed remotely on the website of an online store, so-called virtual payment terminals are used , which are a specially designed web interface that allows you to make payments on the network and pay for various services. This is a regular program running on the server of an online store and performing the same functions as the above terminals.
Additionally, we note that payment terminals can use various communication channels for remote connection: dedicated (wired) Ethernet, mobile GPRS communication, ADSL, etc. Usually, the faster and more stable communication, the more expensive it is to connect and operate.
The use of payment cards and POS-terminals relieves you and me of the problems associated with the circulation of cash. You no longer need to worry about the constant presence of money in the wallet, if it is on the card, and count the change. And the common phrase of the cashier “give without change” may soon become a thing of the past. And it is more profitable for the enterprises themselves to accept non-cash payments so that they do not once again collect the proceeds to the bank (and for the tax authorities it is profitable - all operations are at a glance). Therefore, a POS terminal is undoubtedly a device in demand and useful. Provided that at least minimal security measures are observed, of course.
P.S. We also recommend that you familiarize yourself with the article on the payment terminal - the “distant relative” of the device considered in this review.
(c) privatbankrf.ru
