Electronic Payment Terminal (EPT): A Comprehensive Guide
In recent years, electronic payment terminals (EPTs) have become increasingly popular for processing transactions. These devices facilitate card payments, transitioning from static, wired technology to mobile connectivity through Bluetooth, Wi-Fi, or 4G. What exactly is an EPT? What are its main variations? What are the benefits and selection criteria for this payment solution? This guide provides answers.
What is an Electronic Payment Terminal?
Also known as a card reader or card payment terminal, an EPT allows instant transactions via bank cards. It connects to servers to ensure transaction security and uses NFC technology.
To accept payments with an EPT, simply ask your customer to insert their card and enter their PIN. Contactless payment is also possible; the customer just needs to place their card on the reader to initiate the transaction.
Types of Electronic Payment Terminals
There are different types of EPTs, depending on your needs and business specifics.
Countertop Terminals
These are popular fixed solutions in France, directly connected to a power outlet and linked to a phone line or wired internet connection. Ideal for businesses where payments are made at the counter, these terminals can come with multiple card readers to speed up payments. Some versions can also be used on the go.
Mobile Readers Paired with a Smartphone
This category operates through an app downloaded on a smartphone and a portable card reader. The EPT connects to the network via the smartphone’s Bluetooth. Cost-effective, this mobile EPT avoids the expenses of purchasing or renting hardware. It's popular among small businesses and large retailers alike to reduce checkout lines or increase payment points across the sales floor. Compact and portable, it's perfect for mobile use.
For businesses with moderate monthly transactions, payments via smartphone and other Android or iOS devices are recommended. Using NFC payment solutions, very popular in France, they turn smartphones into full-fledged EPTs.
Smart Payment Terminals
Running on Android, smart payment terminals are a market innovation. Equipped with a touchscreen, these versatile solutions accept payment methods like Google Pay and Apple Pay. Additionally, by installing applications on the terminal, advanced functionalities can be added. Paired with the Pay On Site terminal solution, they enhance customer experience with features like feedback collection, personalized QR codes, and targeted content display.
Choosing Between Mobile and Fixed Terminals: Which is Best for Your Needs?
While EPTs are suitable for all professionals, choosing between a fixed and a mobile terminal depends on your business needs, specifics, and preferences.
For businesses where payments are made solely at the counter, a fixed EPT is an obvious choice. However, using a mobile EPT alongside a fixed model allows for payments across the sales floor, especially during peak times, avoiding the need to queue at the checkout.
A mobile EPT is ideal for restaurants or mobile businesses, offering wireless mobility that fixed terminals cannot provide.
EPTs Adaptability for Entrepreneurs and Local Businesses
EPTs have evolved significantly and cater to various sectors. For both entrepreneurs and local businesses, these payment solutions offer flexibility.
Flexibility for You and Your Customers
Large retailers and small businesses alike benefit from the range of solutions offered by Market Pay, ensuring seamless customer transactions throughout the store and even on the go, optimizing the shopping experience.
Advantages and Disadvantages of EPTs and How They Can
Help Grow Your Business
Like all technologies, card payment terminals have pros and cons. Key advantages include:
- Connectivity: EPTs can connect to the bank via the internet. There are versions for mobile merchants using SIM cards and 4G, or Bluetooth-enabled card readers.
- Functionality: Modern terminals offer advanced features beneficial for both merchants and customers, either integrated into the reader or accessible via apps and digital tools.
- Security: Transactions require the customer’s PIN, securing payments and ensuring merchants receive payments without risk of unpaid or bounced checks.
- Fees: Transaction fees vary by contract and payment solution type, but are generally adaptable and moderate, especially with high transaction volumes.
- Compatibility: Standard EPTs are compatible with most bank cards in France, including foreign currency cards.
Despite these benefits, EPTs have limitations, such as the risk of breakdowns inherent in digital solutions.
Selecting the right EPT is crucial for business growth, considering the advantages mentioned. The choice should also factor in payment remittance times specified in the contract, which vary by Payment Service Provider (PSP). Opt for a PSP that ensures quick remittances. A maintenance contract with insurance and quality customer service is also essential to leverage the EPT for business development.
The Rise of Mobile Payments in France
Mobile payments have surged in France, with over 70 million active bank cards (Groupement des cartes bancaires). Between 2021 and 2022, card payments via EPTs more than doubled, according to the Bank of France's payment methods observatory.
The popularity of mobile EPTs is due to their flexibility and compatibility with various bank card types. This positive trend suggests a promising future for card-based electronic payment terminals.