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EDC (Card Swipe) Machine : How to Use, Order, Price, Charges in India

EDC (Card Swipe) Machine: How to Use, Order, Price, Charges in India. In the previous article, we have given What is MICR Code on Cheque and How to write a cheque in India? Today we are providing the complete details of EDC Machine (Debit or Credit Card Swiping Machine) I;e How to use, how to order, price and charges in India. What is an EDC Machine? An EDC machine (also known as a card swipe machine) is a payment terminal provided by the bank on which the merchant can swipe or dip cards to receive payments. An Electronic Data Capture (EDC) machine is used to facilitate debit/credit card payments. EDC machine captures the essential information linked to the card. The information so captured is transferred to the card issuer for authorisation purpose via the telephone line or wireless internet.

EDC (Card Swipe) Machine : How to Use, Order, Price, Charges in India

How to install an EDC machine

  • To get an EDC machine installed, the merchant needs to make an application with a bank providing the relevant service. There are two basic criteria necessary for approval
  • The applicant should have a valid commercial establishment.
  • The business should be in existence for at least six months.
  • Along with the application, the merchant would be required to submit certain documents, which include identity proofs, address proofs, business proofs, etc.
  • There are some fees and charges applicable on an EDC machine, which include one-time charges on equipment and installation and fixed monthly charges.

How to Use EDC / Card Swipe Machine

  • Since the card can be a debit card or a debit card, the machine is also known as a credit card swipe machine or a debit card swipe machine.
  • Cards with embedded chips need to be dipped in the machine while cards without chips can be swiped
  • Once a card is swiped/dipped, the EDC machine captures the essential information linked to the card. This includes the card name, card number, transaction amount, etc
  • It also records the name of the outlet where the transaction is made and the date and time of the transaction
  • The information so captured is transferred to the card issuer for authorisation purpose via the telephone line or wireless internet.
  • Post-authorisation, the amount is transferred to the seller’s account

How to Order / Get / Issue EDC Machine

1st Option

  • You need to get set up with a Merchant Services account
  • You can usually do this through your bank

2nd Option

  • Go to your local bank and ask if they do Merchant Services. If they say they do then ask to set up an appointment or talk with them on the spot.
  • Most banks will rent the machinery out to you because you’re looking at a couple 100 bucks to buy (renting might be cheaper).
  • There will ALWAYS be a processing fee (which most people don’t know about) that Visa, Discover or any other major card carrier charges to use their network when clearing your credit card transactions.
  • Also, there are 3rd party companies out there that offer merchant services processing and also equipment to buy.
  • Either way, you go, bank or 3rd party you should find out what the costs involved if you buy or rent and what the processing fees would add up to (if you plan on doing this each month).

Charges For Pos Terminals Are As Under

1. Where the terminals will be used for both sales as well as Cash Payment Transactions then the bank will recover rental Applicable for such cases which are as under:

i) For PSTN Terminal (Landline with outgoing STD facility)  No Charges
ii) Monthly Rental for desktop GPRS/Portable GPRS Terminals
Desktop GPRSPortable GPRS
Monthly Rental UPTO 48 Months220/-+ Service Tax as applicable400/- + Service Tax as applicable
From 49th MonthActual SIM charges Only (presently Rs.45/- + Service Tax per Month)

2. Further, where the transaction are below Rs.25,000/- Per Month, then monthly Commitment charges at following rates will be applicable

ParticularsMonthly VolumeCommitment charges
Commitment Charges (Minimum Volume per Terminals per Month)
  • Above Rs.25,000/-
  • Rs.15,001 to Rs.25,000/-
  • Rs.0 – Rs. 15,000/-
  • NIL
  • Rs.150/- + Service Tax
  • Rs.199/- Service Tax

3. One Time Installation & Association charge of Rs.500/- + Service Tax. (This includes the charges to be recovered by SBI).

4. NICTs Monthly Charge Rs.200/- (Per Month) + Service Tax for all types of machines In the case of the below mentioned situations the bank has the right to recover charges from the merchant as under and should be read together with points 7(a) to (i) of the agreement.

5. In the case of the below-mentioned situations the bank has the right to recover charges from the merchant as under and should be read together with points 7(a) to (i) of the agreement.

Sl.

No.

ParticularsProposed Charges
i.De-Installation ChargesIf de-Installation is done

 

  • within 6 Months from the date of installation Rs.500/-
  • after 6 Months and before 1 year from the date of installation Rs.150/-
  • after 1 year from the date of installation Rs.300/-
ii. 

Adaptor Replacement Charges (First would be provided free of cost)

 

  • Rs.500 (including tax) for PSTN & Desktop GPRS models or actual charges whichever is higher
  • Rs.600 (including tax) for Portable GPRS models or actual charges whichever is higher
iii.Recovery of GPRS Rentals and Arrears thereafter• If any NICT Associate defaults the monthly rentals for two consecutive months, the terminal would be de-installed without any further intimation
iv.Physical Damage to the terminal due to mishandling (other than normal wear and tear)• Rs.3000 + Service Tax or the Actual Charges whichever is higher to be debited to NICT Associate account as per actuals

6. If the POS terminal is used for [email protected] only then following Monthly rental is payable.

S. No.Type of terminalMonthly Rental to be Charged (In Rs.)
1For PSTNRs.250/-+ Service Tax
2For Desktop GPRSRs.350/- + Service Tax
3For Portable GPRSRs.450/- + Service Tax

7. Merchant Discount Rates For Sbi Pos Terminals

TYPE OF CARDTRANSACTION AMOUNTMERCHANT DISCOUNT RATE (MDR)
STATE BANK DEBIT/ATM CARDFOR ANY AMOUNT0.65% + SERVICE TAX (i.e 0.74%)
OTHER BANK DEBIT/ATM CARDUPTO Rs.2000/-0.75% + SERVICE TAX (i.e 0.85%)
ABOVE RS.2000/-1.00% + SERVICE TAX (i.e 1.14%)
ANY CREDIT CARDFOR ANY AMOUNT1.50% + SERVICE TAX (i.e 1.72%)
FOREIGN CARDSFOR ANY AMOUNT2.00%+ SERVICE TAX (i.e 2.30%)

Settlement Mechanism :

State bank of India will pay to NICT the transaction amount on the next working day (T + 1 WD i.e Transaction day + 1 Working day).

NICT will credit Associates account with State Bank of India with the amount of transaction on the 3rd working day (i.e., T + 2 Wd). The associate will have to have a bank account with State Bank of India.

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