Understanding the Concept of Push Payment Method in Countertop Card Machines

 

A push payment in countertop card machines is any financial exchange that starts with the sender instead of the receiver. A customer might swipe a credit card at the register or choose to pay with a digital wallet at a web checkout as everyday examples. If your insurance company pays you $60,000, that's a push payment because the money went straight to your bank account. For the same reason, taking money out of an ATM is also a push payment because you initiated the transaction request.

How push payment methods work in countertop card machines?

Digital payments, like those made through a payment platform or an electronic funds transfer (EFT), may be where you hear the term "push payments" now more often. You could send your partner $400 through Venmo, which is a peer-to-peer internet payment service. Now, let's look at a safer way to do business: paying with a credit card when you receive things. These are the steps of that push payment.

1.      The cardholder's account information is stored on the point-of-sale device or payment server. The creditor makes sure the transaction is accurate.

2.      The payment processor sends the request for the transaction to the store acquirer.

3.      The acquirer gets permission from the card system of the cardholder's credit card, like Visa, Mastercard, or Diners Club.

4.      The card plan checks with the cardholder's bank (the issuer) to make sure.

5.      The seller agrees to the payment. At the point of sale or payment gateway, the processor sends the message back to the seller.

What are the advantages of push payment processing system?

·         Because the customer is paying at the point of sale, there is less chance of return requests and chargebacks. It's harder for the buyer to claim a wrong charge when they have to prove who they are at the point of payment.

·         The customer finds it easy and comfortable to pay using the way of their choice. This can be whether a credit card, Apple Pay, or direct deposit.

·         Merchants are safer because digital payment handling often comes with systems that look for fraud. When cashiers get new bills, they usually have a few ways to check them to make sure they are real.

·         Instant payment lets businesses send things or provide services with confidence, knowing they'll be paid.

Does this method have any drawbacks?

·         If you use almost any kind of digital payment method, you will have to pay transaction fees.

·         If your payment gateway doesn't keep cardholder information, you could lose return business. A scary 30% of US online shoppers will leave their carts if they have to enter their credit card information again, according to a study. Pull payment methods, on the other hand, use stored payment information to take money out at set times instantly.

Conclusion

For the most part, businesses choose either push or pull payment ways to handle their cash flow within mobile card machines for small businesses. Which side you choose should depend on the goods (or services) you sell, the type of customers you have, and the markets you work in.

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