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What is EDC Machine? A Complete Guide

EDC Machine

The EDC machine is currently the standard payment device. However, in the era of economic globalisation and the Internet, every literate and eligible citizen possesses at least one bank card, whether debit or credit. Therefore, even if mobile payment is growing in popularity, it is still necessary to link your payment account to a bank card to be debited.

Among them, the EDC machine is the device that enables you to finish the transaction by merely swiping the card. Nevertheless, have you heard of the EDC machine? And now that there are numerous EDC or POS machine providers, you must understand how to choose the best EDC machine.This post will provide the most significant assistance for the EDC machine and give you a deeper understanding of it.

What is EDC Machine?

EDC Machine full form: Electronic Data Capture Machine.

Electronic Data Capture (EDC) machines are also known as credit card swipe machines and EDC card machines. It refers to the payment terminal that helps clients complete transactions by swiping or dipping cards and ensures businesses receive payment correctly.

Once a card is swiped or dipped, the EDC machine will capture the essential information (card name, card number, transaction amount, etc.) associated with the card and send it to the card issuer for authentication through SMS, email, telephone, or wireless internet. It will also record the transaction’s location, date, and time for future reference. It protects rights and interests and facilitates transactions for customers and merchants.

How does EDC Machine work?

As is general information, EDC machines are utilised anywhere payment is required. Customers can select their desired payment method from Debit Card, Credit Card, QR codes, UPI, PPB, and Net Banking to make a transaction.

Then, how does an EDC machine function, and how should it be used? The staff member will enter your credit card into the EDC machine and pass it through a narrow slit. The EDC machine will then extract and display the cardholder’s name, credit card number, and expiration date inscribed on the credit card. Furthermore, the retailer where the transaction was completed will be recorded.

The collected information will be processed in a few seconds and then communicated to the merchant service provider through wired or wireless internet. After the authorisation of the data, the merchant will receive the amount.

EDC Machine

Features of EDC Machine

EDC machines can be purchased from any brand or payment solution provider. You will likely discover the following hardware features:

  • Support for credit and debit cards enables card payments.
  • Various payment methods are accepted, including net banking, UPI, and digital wallets.
  • With the integrated printer, you can print payment receipts for your customers.
  • Scan QR codes with a barcode scanner to collect payments via payment apps.
  • The use of an autofocus and lighting camera can be used to capture QR code payments.
  • Rechargeable batteries so you do not have to replace the EDC machine’s battery whenever it runs out.
  • Connectivity is enabled by Near Field Communication (NFC) to collect payments by tapping cards on the machine.
  • Bank or brand extending credit to clients.
  • Customer service is available around-the-clock to ensure you receive the necessary assistance if you encounter a technical difficulty while using the machine.

Difference between EDC and POS Machines

1. Operating system

The underlying operating system is one of the most significant distinctions between EDC machines of various types. While some devices are based on LINUX, others operate on Android and permit the integration of additional Android applications.

2. The presence of a built-in printer

While enabling offline payment acceptance, payment solution providers offer two distinct types of EDC devices, depending on whether or not they can print receipts. This is why certain EDC devices can generate receipts immediately following the processing of a payment, while others cannot.

3. Number of supported payment options

Another significant distinction between EDC machines is the number of payment methods they accept. Others allow payments via UPI, net banking, and QR codes in addition to card (credit/debit) payments.

4. Size of the apparatus

This can be viewed as a clear distinction between EDC machines. Depending on their capabilities or the brand’s design choices in terms of size, you can discover EDC machines that are small enough to fit in your pocket and large POS machines for your business outlet.

5. Pricing

The cost of an EDC/POS machine is the final but most significant feature that differentiates it from others. Depending on the brand’s reputation and the gadget’s capabilities, you will be charged an initial price and a monthly fee to use the device for payment acceptance purposes.

How does the EDC Machine provide payment security?

Regarding transactions, security should be prioritised everywhere and at all times. Then you may wonder how an EDC machine can provide payment security. The answer can be found in the following section.

1. Authentication of identity

After establishing a connection to the server, the user identity of the EDC machine will be validated. Only the EDC card machine that has been authenticated will be issued an IP address. Once the bank POS host receives the transaction data, it will match the merchant and EDC card machine series numbers with the database to validate the device’s access.

2. Data protection

The transaction data packet and the mechanism for encrypting transactions conform to the ISO8583 standard. This indicates that the data encryption protection and MAC at the application layer will collaborate to ensure the EDC machine system’s transaction data security. The sensitive data, such as account information and passwords, will also be encrypted using the worldwide standard algorithm 3DES.

3. EDC Machine protection

The EDC card machine will have a GPRS SIM card that can access a particular system to prevent unauthorised entry. Securely stored on a dedicated secure CPU the machine’s master key is encrypted and stored on a dedicated secure CPU.

4. Internet protection

The CS-1 and CS-2 have encryption protection for sent data, proving the security of GPRS transmission coding. We will build a virtual private network using VPN or SDH technology to ensure that the EDC card machine system can securely access the POS host and the bank’s internal network resources while maintaining the stability and security of the wireless network.

5. Firewall

A firewall is an important means of protecting network security, as it may significantly enhance the security of the internal network, prevent assaults from untrusted networks, and decrease risks by filtering out unsafe services.

6. PCI certificate

To ensure the safety of credit card data, the official financial edc machine has to achieve the Payment Card Industry certification (PCI). It reflects the strictest and highest certification criteria for financial machinery safety worldwide.

7. Electronic signature

A digital signature can increase the security of payments and make them more environmentally friendly. After the transaction is complete, the electronic signature will be posted to the system. Customers may opt to print the receipt, including the cardholder’s electronic signature with digital anti-counterfeiting and the ability to prevent theft or tampering, thereby enhancing payment security.

8. Contactless payment system

In accordance with the new UnionPay legislation, the financial terminal must feature a contactless payment function that enables clients to tap and pay, streamlining the transaction stages and enhancing payment security.

EDC Machine

Which EDC Machine is ideal for your organisation?

At this juncture, you must recognise that the proper selection of EDC devices is intended to streamline the money-collecting procedure for your firm. Before making a decision, you must examine the following factors:

1. Your exact company requirements

First and foremost, you should examine the needs of your firm. Even if you operate multiple enterprises of varying sizes and scopes, yours can be distinct and original. Consequently, you may have specific payment acceptance requirements. Answer the following questions to comprehend the enterprise’s requirements better:

  • How frequently do your consumers request to pay with credit or debit cards?
  • How receptive are you to cashless or low-cash transactions?
  • Do you sell products that require card payments in the retail or wholesale channels?

A comprehensive understanding of your demands will guide you in the proper route when selecting an EDC machine.

2. Most popular payment methods chosen by your customers

Assess your customers’ preferences if you are still trying to decide whether you require an EDC device to accept card payments.

Which payment methods do the bulk of your consumers choose when making purchases?

If they request a credit or debit card payment option while purchasing from you, it indicates that they are most likely to choose that method. The other factors are contingent on the availability of EDC devices to accommodate these client preferences.

You may have also witnessed people leaving your store without purchasing because you need the ability to accept card payments.

3. EDC machine costs — including initial and ongoing

Regardless of the payment solution provider you choose, EDC devices have a cost connected with them. In most instances, there is a one-time upfront payment (with applicable taxes) and a recurring monthly/annual cost. Here, the entire cost of acquiring an EDC machine for your company is contingent upon several variables, including:

  • Payment solution provider you select
  • Specifications of the chosen EDC device
  • Number of supported payment options

4. Brand awareness of a payment solution provider

If anything works above or beside technology in the digital payments ecosystem, it is the customer’s trust in a brand’s products. If you choose an EDC machine from a well-known brand for its payment products, customers will likely feel comfortable using it to make card payments.

In other words, the trustworthiness and brand recognition of the payment solution provider enables people to purchase from you.

5. Expansion of brand/bank offers

Currently, clients are particularly attracted to bank or brand offers and wait for sales to occur before making major purchases. Certain payment solution providers additionally offer EDC machines that can be used to extend bank or brand offers to clients. This is advantageous for both your clients and your business.

What are the Dos and Don’ts of the EDC Machine for merchants?


  • Merchants must accept all cards (Visa, Mastercard, and RuPay) when correctly provided as payment for transactions. Merchants must accept all cards (Visa, Mastercard, and RuPay) when properly presented.
  • Any fraudulent actions must be reported immediately to the bank.
  • Compare the cardholder’s signature with the one underneath the card’s magnetic strip.
  • Perform settlement on the POS terminal at least once daily; a merchant may perform settlement as often as desired. The sum will not be credited to the client’s settlement account if not completed.


  • The merchant must not divulge card or cardholder information to any third party.
  • Apply any additional fees or surcharges (unless expressly allowed by local law). Participate in any fraudulent behaviour.


The use of credit cards is on the rise in India, but they also show great opportunities for you to break into this market and start accepting card payments. EDCs are many electronic data capture devices necessary for your place of business (s). You need to know how to pick the most appropriate EDC machine, as many companies currently supply EDC or POS machines.

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