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.
