Prior to the UK’s introduction of Chip&PIN in 2006, retailers used PDQ devices. There was a potential danger of fraud because this procedure needed manually checking signatures, waiting for receipts, and swiping cards.

Customers insert their cards and private PINs with Chip&PIN, which dramatically lowers fraud.

Since then, credit card readers—an upgraded form of PDQ machines—have prevented fraud losses totaling more than 81.9 million GBP between 2004 and 2014.

This article will enlighten you to understand PDQ machines through a broader spectrum.

Decoding PDQ: Understanding the PDQ Machine

PDQ stands for Processing Data Quickly, it’s a tool used by retailers to take consumer credit and debit card payments. They are also frequently referred to as chip and PIN machines, card machines, card terminals, and point-of-sale terminals/machines.

After obtaining a customer’s PIN and reading the data from their card, the machine transmits the data to the acquiring bank.

It exchanges data in a matter of seconds from a company to a customer and back again, completing the sale

PDQ Machine vs Other Card Machines

Zettle, a well-known card machine supplier worldwide, claims that there is no distinction between PDQ and conventional card machines.

Any gadget that securely and reliably accepts card payments is a PDQ machine, whether it’s a contemporary mobile card reader or a conventional countertop chip and PIN machine.

The only discernible distinction between a mobile card reader and a PDQ machine is usually one of style (and sometimes money!)

Working Mechanism

Not to get too technical, but a PDQ machine takes the transaction data (the value) from the merchant, the authentication data (the customer’s PIN), and the card data (the PAN/16-digit number) from your customer and sends it to the merchant’s acquirer.

The data is subsequently sent by the merchant’s acquirer to the card scheme (often Visa or Mastercard), which then forwards it to the issuing bank (the bank that issued the card).

The issuer verifies whether the card has been reported stolen and whether there are enough funds in the account. The issuer rejects the authorization if the account is overdrawn or if the card has been reported. The issuer authorises the transaction if there are enough funds and the card hasn’t been reported.

Ultimately, the authorization (or refusal) is passed back down the chain from the card scheme to the merchant acquirer and then to the merchant by the issuer. The retailer’s POS receives a message at the conclusion indicating whether or not the transaction can continue.

The entire process typically takes one or two seconds, during which the merchant and customer engage in a small conversation.

Since I understand it’s a lot to process, here’s a condensed version!

Pros of Having a PDQ Machine

• A PDQ machine, also known as a card reader, chip and PIN reader, or card machine, is an excellent addition to any small business.
• But how significant of an addition is it really? We’ve done the study and found the following are just a few advantages of a PDQ machine:
• Your clients expect you to take card payments conveniently, especially because accepting cash payments is becoming less common.
• Contactless payments are the most convenient option because your consumers may simply tap and go.
• All card readers are safe and secure because they have built-in security software that guards against data breaches involving both you and your clients.
• Eliminating cash handling has several advantages, including increased hygiene due to card payments, eliminating the need for you to keep cash on your property and saving time when depositing it into your bank.

Naturally, if you have already accepted card payments successfully, all of the above will already be true.

Types of PDQ Machines

There are three varieties of PDQ machines available in the UK: countertop, portable, and mobile. Since each of the three has unique benefits and drawbacks, none is truly superior to the others in every circumstance.

But, we have provided an explanation of each of the “flavours” in our comprehensive reference to PDQ devices.

Countertop

The most prevalent type of machine is the countertop PDQ machine, of which you undoubtedly encounter dozens every day.

These devices are ideal for companies that only accept payments from a specific area of their building. For the majority of retail establishments, payment is made at a designated checkout.

Countertop PDQ devices connect to the POS system physically and exchange data with the outside world through an Ethernet connection or phone line.

The Verifone VX520, Ingenico iCT220, Ingenico iCT250, Spire T4220, and Spire SPc50 are examples of common countertop PDQ devices.

Portable

Moveable or portable PDQ machines are battery-operated devices that you may take around your premises. They are connected to a base station via Bluetooth or WiFi.

These PDQ machines come in handy if you have a vast space and need to accept payments across it rather than just at a designated checkout area.

Bars and restaurants most frequently use portable devices so employees may collect payments from patrons at their tables.

The maximum range of a Bluetooth device is about 100 metres. That being said, this is probably far less in buildings. When used indoors, WiFi devices ought to have a range of up to 50 metres.

The Verifone VX680, Ingenico iWL222, Ingenico iWL252, Spire M4240, and Spire SPw60 are examples of popular portable PDQ devices.

Mobile PDQ

A mobile PDQ machine will remain linked outside of a permanent business site by using the mobile telephone network (GPRS or GSM). This implies that, in theory, you can accept payments anywhere in the nation using a mobile PDQ machine. But since you depend on the signal from your cell phone, you’re stuck if there’s no coverage.

The majority of firms that accept payments off-site, such as contractors, debt collectors, market vendors, travelling salespeople, and so forth, employ mobile PDQ machines.

The Verifone VX675, Ingenico iWL251, Spire M4230, and Spire SPw70 are examples of common mobile PDQ devices.

Mobile Card Reader

A new class of mobile point-of-sale devices (PDQs) known as mobile point-of-sale devices (mPOS) or simply card readers has evolved in recent years.

All a card reader is is a small terminal that connects via Bluetooth to a tablet or smartphone. Next, the tablet or smartphone establishes a WiFi or 4G connection with the acquirer.

Micro businesses prefer mobile card readers because they are generally less expensive to purchase and have no further charges outside the transaction fee, which is significantly greater than that of a regular rented terminal.

Devices like Square, Zettle, and SumUp are examples of common mobile card readers.

Accepted Payment Methods on PDQ Terminals

Contemporary PDQ devices are capable of accepting the four most popular card payment methods.

In the past, PDQ machines could only accept magnetic stripe or chip and PIN payments. However, most PDQ providers have kept up with the changes and now allow their devices to accept all major credit and debit cards.

Chip and PIN:

PDQs are well-equipped to process chip and PIN payments, and they are still frequently regarded as the safest way to make card payments.

Contactless:

The most popular way for the general public to pay with a card is contactless. Modern PDQ devices come with software that makes accepting contactless payments simple, quick, and safe.

Mobile/E-Payments:

In the payment business, contactless mobile payment solutions such as Apple Pay and Android Pay are relatively new. However, the general public finds them incredibly appealing, particularly because almost everyone has a smartphone or smartwatch.

Due to their recent surge in popularity, PDQ providers are now being urged to install software that securely takes contactless e-payments on their terminals.

Magnetic Stripe:

An old-fashioned, sporadically used method of taking credit cards. Consumers insert their cards into the PDQ machine by swiping them down its side. The card information is then read, and the customer signs the receipt to verify their identification.

How Expensive Is It?

Without providing you with a breakdown of the pricing, we wouldn’t be able to claim that this is the definitive guide to PDQ machines.

We get asked this question a lot. And by a lot, I mean.

Sadly, there is no hard and fast answer to this query because the exact amount you must pay will vary depending on your industry, needs, and card volume.

You will be required to pay several fees for PDQ machines during the course of your contract. We’ll go over common charges in the next sections, which we’ve divided into the following segments:

• Upfront Costs
• Monthly Fees
• Extra Fees

Preliminary Costs

Regretfully, there are some initial expenses associated with PDQ equipment that must be paid before you can begin using them.

Establishment Fees	Fees for PDQ Machine Purchases
An initial set charge for the installation of new merchant facilities is occasionally avoided. Usually, the setup charge ranges from £50 to £150. Your supplier may agree to waive this cost if you bargain with them.	Consider two choices regarding the PDQ machine: purchasing or renting (more on the decision later.) If you decide to buy a PDQ machine, the price will probably run you between £200 and £800, depending on how fancy the terminal is.

Monthly Fees

You should budget for a reasonable number of monthly expenses, which range from the basic cost of renting your PDQ machine (if you don’t buy one) to the percentage your acquirer charges on each transaction. This is a brief summary of the monthly fees you might anticipate, along with their associated amounts.

Terminal Hire: This is the base rental cost for your PDQ machine. Generally, a stationary countertop machine costs £14–16, a portable machine costs £17-91, and a mobile machine costs £20–24. You will not be required to pay this if you purchased your PDQ unit outright.

Transaction Fees: The fee associated with each credit or debit transaction you accept is known as the merchant service charge. Roughly 0.25–0.35% for debit cards, 0.7-9% for credit cards, and 1.6-2.8% for business credit cards on average.

Authorization Fees: An extra cost is applied to each transaction authorisation in order to evaluate the payment method. Usually between 1-3 pence for each transaction.

Monthly Service Charge Minimum: Afee assessed in case your transactions don’t reach a specific threshold. You are not assessed the minimum monthly service charge (MMSC) if your other fees exceed the minimum monthly service charge, usually between £10 and £20 a month. The purpose of the MMSC is to guarantee that your provider recovers its substantial initial expenditure.

We assist retailers in evaluating their choices for payment processing. In only two minutes, you may reduce your card processing expenses by up to 40%!

Extra Fees

Over the course of your contract, you may encounter a few one-time or irregular fees. The most prevalent one starts each time a cardholder seeks a chargeback and is called the chargeback fee. This usually ranges from £10 to £20 each instance.

Picking the Best PDQ Terminal as Per Your Business Needs

Choosing a card machine can be difficult and time-consuming because there are so many possibilities. To begin with, the best method for selecting the ideal machine for your company is to only evaluate:

1. What kind of company do you run? Such as retail, lodging, etc.
2. How is your company run? Do you have a designated checkout area? Or do you visit your clients?
3. Where do you conduct business? Do you operate from a set premise? Or are you similar to a construction company, food truck, or mobile hair salon?

Second, examine the many PDQ machine types that are offered and determine which ones are best for your company. The four different kinds of card machines are described here, along with the industries for which they are most appropriate.

• Countertop: If your company has a fixed till area and doesn’t need a portable card machine, countertop models are a perfect option. Ideal for salons, retail, and certain hospitality enterprises.
• Portable: Businesses that need to move around or accept payments from clients while operating in a vast area would benefit greatly from portable PDQ equipment. Ideal for sizable hospitality enterprises
• Mobile: For individuals who can rely on a Bluetooth and 3G connection, mobile machines are excellent choices. These include mobile card readers and mobile PDQ machines. Ideal for mobile enterprises, those without a permanent address, and companies that need to be able to move around freely.

Use Compare Card Processing to compare models and costs.

Buying vs. Hiring a PDQ Machine

As previously said, retailers must choose whether to purchase their PDQ machine altogether or to rent or lease it from a provider. Since each has a variety of benefits and drawbacks, it is challenging to conclude which is superior. We’ll examine both choices in-depth and go over the advantages and disadvantages of each in the next two sections.

Aspect	Renting	Buying
Cost upfront	Low initial cost, monthly payments	High initial cost, one-time payment
Commitment	Long-term contract	No contractual commitment
Ownership	Not owned, returned after contract	Owned outright
Maintenance	Provider handles maintenance and repairs	Responsible for maintenance and repairs
Total Cost	May be higher over time	Potential long-term savings
Upgrades	Limited options for upgrades	Need to purchase new for upgrades

Final Word

The article concludes with a comprehensive guide on PDQ machines. We really hope that our investigation has been useful to you, from learning about the various kinds of card machines that are available to choose the one that is ideal for your company. A PDQ machine is essential to the success of your company, regardless of how long you’ve been in the industry and how much you want to change with the times.