PDQ machine – What is a Process Data Quick machine, and how does it work?

What are the origins of the PDQ machine, how does it work, what types of machines are out there, and what are their advantages?

We look at these questions and much more.

PDQ machine – definition

PDQ stands for “Process Data Quick“, and PDQ machines are the precursors to card machines as we know them today. It’s not an often-used term anymore, but these devices are your typical credit card, chip, PIN, and contactless machine for accepting card payments.

What are the origins of PDQ machines?

Before Chip&PIN was introduced to consumers and businesses in the UK in 2006, merchants made use of the so-called PDQ machine. Unfortunately, the process was tedious as sales staff would have to swipe the customer’s card, wait for the receipt to be printed, and check that the signature on the back of the card matched that on the physical receipt. 

This caused a high likelihood of fraud as fraudsters with an illicitly gained card could simply replicate the signature without easy detection.

It’s been estimated that between 2004 and 2014, over 81.9 million GBP has been saved in credit card fraud losses because of these machines as they require the customer to enter their card in the machine, followed by entering their secret PIN, known only to them. Credit card readers are the newer, more secure version of the old Process Data Quick machines.

How does a PDQ machine work?

There is little that differentiates PDQ machines from credit card machines in terms of payment acceptance.

In fact, the process can be narrowed down to 4 steps, which are:

1. The customer enters their debit or credit card into the PDQ machine after they have entered the payment amount for the purchase in question, say a cup of coffee.
2. An authorisation request is sent to the card issuer through the PDQ machine or the customer’s bank.
3. If sufficient funds are in the customer’s account, authorisation is granted.
4. Finally, the funds are transferred from the customer’s account to the merchant’s account. While this can usually take days, some providers, like myPOS, provide instant funds settlement.

Payment methods handled by a PDQ machine

A PDQ machine can handle various card payments, contactless payments, and mobile payments made through digital wallets such as Samsung Pay, Google Pay, Apple Pay, or Android Pay.

Overall, the three main payment types are:

• Chip and PIN: PDQ machines accept chip payments, meaning that once the transaction has been initiated, the customer needs to insert their credit or debit cards with the chip facing upward and forward into the machine for the machine to read it. 

• Contactless payments: Customers who seek to make contactless card transactions, which involve merely hovering or tapping their card above the process data quickly; card machines can also enjoy this functionality for faster payment processing. These machines can accept contactless payments in a streamlined and secure way, offering customers greater peace of mind.

• Mobile payments: Mobile payments are payments made with digital wallets. The customer’s credit or debit card is preloaded and stored on their smart mobile phones. Once the transaction is ready to proceed, the customer simply opens their app and hovers their phone above the PDQ card machine. The communication process begins.
  
  Card payments are usually processed in seconds. The issuer communicates with the customer’s card provider to determine if there are sufficient funds in their bank account. After this, bank authorisation takes place, and funds are transferred.

What types of PDQ machines are there?

The world of PDQs is quite broad, and you, as a merchant, can make an informed choice about these machines. Let’s take a closer look at the various options. They come in the following types.

Traditional devices

Traditional PDQ or card payment devices usually have a physical keypad for entering amounts. While some print receipts, others are paper-free and can send the customer a receipt via email or SMS.

Smart devices

Android-powered debit and credit card machines are another noteworthy investment for merchants who are looking for a more sophisticated solution to their payment needs.

Such devices usually have an amazing touchscreen that can be connected to various apps, making payment acceptance much more seamless. Depending on the customer’s needs, they also offer paper and digital receipts.

Smart apps

Innovation in the world’s payment landscape is that merchants can now take payments through their Android smartphones through an app called myPOS Glass.

With this app, which requires no additional cables, dongles, or hardware, both merchants and customers can have a seamless payment experience. Payments are processed immediately, so this solution is ideal for merchants on the go who can accept payments anytime, anywhere. 

Countertop

Countertop PDQ machines are typically positioned on or near the merchant’s counter in a physical store. They are usually connected via a fixed internet connection and are sometimes plugged into a power outlet. In such cases, when a customer seeks to make a payment, they are guided to the merchant’s checkout, where the card machines are positioned, and then proceed to make a payment.

Portable

Portable PDQ machines accept Chip&PIN, contactless and mobile payments. They are not physically connected to a countertop with wires or cables and can be moved around. Examples of businesses that use them include coffee shops and restaurants, where customers don’t have to physically go to the portable PDQ machine to pay. Instead, the reader is brought directly to the customer. They tend to work with a Wi-Fi signal. 

Mobile

A mobile PDQ card reader is a highly versatile means of accepting payments. Mobile PDQ machines enable merchants on the go to accept card payments through their smart mobile devices. Credit and debit card payments are streamlined as using a mobile PDQ machine facilitates ease of access and offers greater mobility, thus streamlining the payment process for both merchants and their customers.

How much does a PDQ machine cost?

Regardless of whether it is a traditional or smart PDQ machine, more options mean more costs. The Android smart devices offer excellent applications for inventory management, QR scanning, durable batteries, and much more.

All in all, what amount does a PDQ machine cost? This will rely upon whether you’re purchasing or leasing. The beauty of PDQ machines is that they are affordable and can go from as little as 29 GBP and reach a price as high as 249 GBP! Buying a PDQ machine from myPOS comes also with a 1-year free warranty.

Advantages of PDQ machines

Most merchants these days opt for PDQ machines simply because consumer trends indicate that they would like to pay in a safer and more convenient way.

Here are some of the advantages of PDQ machines for merchants.

Secure

PDQ machines comply with the highest industry standards, eliminating and minimising any potential for fraudulent transactions. A PDQ terminal encrypts data or tokenises it, keeping risks related to financial information theft lower.

Affordable

Merchants who are looking for budget-friendly PIN card payment terminals can take advantage of affordable traditional PDQs, going from as little as 29 GBP. 

Fewer cash-related errors

The likelihood of errors and, ultimately, theft and fraud related to cash acceptance is significantly reduced. The less cash accepted and the higher the volume of card transactions, the easier it is to track your payments receivable and enjoy stronger reporting and analytics functionalities.

Instant settlement of funds

Payment service providers such as myPOS offer merchants instant settlement of funds into a free online merchant account, which differs from a business bank account, with a free IBAN and free Standard Visa business card. Moreover, you can better manage your business-related expenses with no monthly fees attached to purchasing your modern PDQ machine.

Accepts all types of payments

PDQ machines today accept various types of payments, from contactless to NFC, Chip&PIN, and Magstripe. In addition, they accept digital wallets, thus offering customers greater choice and convenience when making payments.

Meets customers’ expectations

Customers today are looking for a secure, hassle-free payment experience, and paying with their cards is becoming the norm in many European societies. 

What is a PDQ payment?

PDQ payment is made with a customer’s prepaid, debit, or credit card on a card reader or POS device. The device extracts the information from the card and communicates with the relevant parties involved in the payment acceptance process.

Payment extraction happens either when a customer swipes their card’s magnetic strip on the POS device, enters their card’s chip in the specially designed slot for this purpose, followed by their Personal Identification Number (PIN) or taps or hovers their card above the terminal to ensure that contactless payment is processed.

Therefore, a PDQ payment is one that accepts a customer’s magnetic stripe, Chip&PIN, or contactless card to process.

How to choose the right PDQ machine for your small business

Wondering whether you should get a contactless PDQ machine or one that accepts Chip and PIN payments? The good news is that you can pick both and get even more from a single PDQ terminal.

However, your choice of a PDQ reader should depend on factors such as:

• The type of business you run. For example, if you’re at a fixed location, you can use a countertop PDQ reader, while if your business is primarily on the go, a mobile machine could be more useful.
• Cost will also play an important role, based on your affordability levels.
• You also need more convenience for your business, such as instant access to your received funds. Not all providers offer this option, so choose your provider carefully.
• You need to process payments of different types, be they contactless, Chip and PIN, or through a digital wallet. Ensure that your PIN machines offer this functionality.
• Accept credit and debit card payments easily and confidently that your PIN machine is secure and complies with the highest industry standards.

Overall, PIN payments and others can significantly diversify your payment acceptance offering while ensuring you meet your customer’s needs. However, choosing the right PDQ reader requires a careful evaluation of your business needs.

In closing…

Although it’s not a very common term, PDQ or credit card machines are a very popular way of accepting payments. Whether you choose a traditional or Smart device to help you run your business, keep in mind that an increasing number of customers are turning to card payments across Europe. Their popularity in the wake of COVID-19 is only set to grow because we consider them safer and more hygienic ways to pay.