Choosing the payment terminal is an essential step. It allows merchants to offer an attractive payment solution. The bank card has become, in the space of a few years, the means of payment by reference.
Entrepreneurs and merchants end up with several ways to cash in with: cash, cheque, bank transfer and bank card. All of these solutions are relevant and have all their pros and cons.
The arrival on the market of the electronic payment terminal is one of the best devices that can exist on the market. It's an efficient, easy-to-use, fast device with reduced usage costs.
In this article, we will see what an electronic payment terminal is, what are the advantages of this product and study all the criteria that need to be analyzed to choose its TPE.
Read also: Our ranking of the best payment terminals
What is an electronic payment terminal?
The electronic payment terminal is a device for accepting payments using a credit card. It is a small case, which can be equipped with a printer to edit receipts, which is of modest size and easy to use.
When the customer puts his card to settle a payment, he will know very quickly the result of the transaction: accepted or refused. The deadlines are very short. The customer will be immediately charged and the seller will be credited.
Such a product has many advantages for the seller, but that's not all. The consumer is not left behind.
Benefits for the trader
The trader using the TPE will end up with several advantages:
- The product is easy to install and easy to use,
- Some TPEs are more advanced and can function as cash register software and have advanced features, such as accounting, business management,
- Payments pass through strict protocols, security is developed,
- According to the TPE model, more or less all cards are accepted (MasterCard, VISA, credit card, debit bank card),
- The merchant will not have all the fees of a payment terminal from a bank, so it is a smaller investment,
- The customer appreciates having the choice to pay and will trust the trader better.
Benefits to the customer
Besides the merchant, the customer will also have several advantages:
- A traceability of all payments made,
- To reduce withdrawals to ATMs, to be quieter in case of card theft, because he can easily object and protect his bank account,
- Not everyone accepts contactless payment, the customer will have to put their PIN to make a payment and will be quieter.
The criteria for choosing your payment terminal
Choosing the best mobile payment terminal for you should be based on these parameters:
- Cashing conditions,
- The mode of communication with the bank,
- The value of the amounts to validate a transaction,
- Advanced features.
These four criteria are going to be enough to have all the information you need to buy the best existing TPE.
Conditions for cashing in
In 2019, companies are growing. Business sectors are diversifying. Contractors are no longer present at a single counter. They can move around the store and allow payment from their smartphone and the connected TPE. They may also be on the go and not connected to the store.
In this case, there are TPEs that work with a SIM card that allows to be fully autonomous and functional. It's a significant luxury.
The choice between a fixed and mobile TPE will depend on your job and the cashing conditions you offer your customers.
How to communicate with banks
To validate or invalidate a transaction, the electronic payment terminal must be connected to a bank. To do this, there are several connection modes:
- The telephone line: it's a classic. The TPE is fixed and will be connected, by a wire, to the store's telephone network.
- The ADSL connection or the fiber of the store: the TPE will be connected through an RJ45 cable to the store box. This is not possible for stores that do not have access to broadband.
- The Wi-Fi of the store: it's the same principle as the previous point. It takes an Internet box and the TPE is connected via the wireless network. It is a solution that is increasingly used at the moment.
- The 3G /GPRS network: this solution requires a SIM card present in the TPE. This is an interesting alternative for people who are often on the move.
The amount of transactions
When the transaction amount is too high above the base threshold, there will be more intense communication with the bank to ensure that the liquidity is present to validate the payment.
The duration of this wait takes “only” a few seconds … It's very fast!
Some TPEs are more equipped than others. We find the SumUp Air which is equipped with a mobile application to work and perform. The same goes for the PocketSmile and iZettle Reader 2.
Other solutions, such as the MaxiSmile and myPOS Combo, will have a printer built into the TPE to edit a receipt. If the printer is missing, receipts will be published by email or SMS.
Mobile applications are very interesting: they allow you to have additional services, such as sales history, billing management, summary of the best products sold, the day, the time slot…
Choosing an Electronic Payment Terminal can take time. We advise you to check out our product tests (SumUp, iZettle, myPOS and Smile and Pay) that we have carried out and which are on the site.