July 18th, 2024 by Elma Jane
The way we pay for goods and services has undergone a dramatic transformation. From bartering to coins to paper money, the journey of payment methods has been long and fascinating. But no shift has been as revolutionary as the rise of electronic payments. Let’s dive into this evolution and explore where this exciting technology might lead us next.
Early Days (1950s – 1970s):
- 1950: The Diners Club card emerges as the first multipurpose charge card, laying the foundation for modern credit card systems.
- 1958: American Express launches its charge card, initially paper-based, revolutionizing travel and expense tracking.
- 1966: Barclays Bank in London introduces the first Automated Teller Machine (ATM), allowing customers basic account access outside banking hours.
- 1970s: Electronic Funds Transfer (EFT) systems gain traction, enabling direct deposit of paychecks and automated bill payments.
Rise of Digital Networks (1980s – 1990s):
- 1979: Visa introduces the first electronic authorization system and point-of-sale (POS) terminal, paving the way for real-time transaction processing.
- 1983: Debit cards become more prevalent, allowing consumers to access funds directly from their bank accounts.
- 1994: First Virtual Holdings pioneers the first secure online payment system, marking the dawn of e-commerce.
- Late 1990s: Online banking explodes in popularity, offering customers convenient account management and payment options.
The Internet Age (2000s – Present):
- 1998: PayPal emerges, simplifying online transactions and boosting consumer confidence in online shopping.
- 2003: Mobile payments gain momentum in various countries, driven by the increasing adoption of mobile phones.
- 2010s: Near Field Communication (NFC) technology enables contactless payments, giving rise to mobile wallets like Apple Pay and Google Pay.
- 2020s: Biometric authentication adds another layer of security to electronic payments, using fingerprints and facial recognition. Real-time payment systems gain popularity, allowing for instant fund transfers.
The Future of Electronic Payments:
- Invisible Payments: Imagine a world where payments happen seamlessly in the background. Technology like Amazon Go is already showcasing this, with customers simply walking out of stores with their purchases.
- Cryptocurrency and Blockchain: While still in its early stages, the potential of cryptocurrencies and blockchain technology to disrupt traditional payment systems is enormous. Expect to see more integration and wider acceptance in the coming years.
- AI-Powered Payments: Artificial intelligence will play a crucial role in fraud prevention, personalized payment experiences, and the development of even more innovative payment solutions.
- Increased Financial Inclusion: Electronic payments have the potential to bring banking services to underserved populations, promoting financial inclusion on a global scale.
The evolution of electronic payments is an ongoing journey. As technology continues to advance, we can expect even more exciting developments that will reshape the way we transact and interact with the world around us.
Posted in Best Practices for Merchants Tagged with: contactless, credit card, Electronic Data, electronic payment, EMV, mobile, nfc, payment, point of sale, terminals
August 2nd, 2016 by Elma Jane
Credit card machine or point of sale terminals are used for processing debit and credit card transactions and are often integrated into a Point of Sale System. Let’s take a look at the POS terminal evolution.
Manual Imprinters – although the process was time consuming and did not offer the speed or instant transfer capabilities, manual imprinters have been around since the start of a wide acceptance of credit cards. Manual imprinters are still widely used and are considered a great backup processing method.
Electronic Authorizations – Merchants had the choice of calling in for an authorization or imprinting their transactions. The first electronic credit card authorizations were done over the phone, but many businesses opted voice authorization only on larger transactions because of the long waiting time for authorizing a transaction over the phone,
Point of Sale Terminals: Point of sale terminals emerged in 1979, which was a turning point in the credit card processing industry. Visa introduced a bulky electronic data capturing terminal. This was the first of credit card machine or terminal as we know them today, it has greatly reduced the time required to process a credit card. MasterCharge became MasterCard in the same year and credit cards were replaced to include a magnetic information stripe which now has become EMV/chip and PIN.
The Future: There’s a lot of room for advancement when it comes to Credit card processing technology. Increasing processing speed, reliability and security are driving forces behind processing technology advancement. Today’s credit card terminals are faster and more reliable with convenient new capabilities including contactless and Mobile NFC acceptance. The processing industry will definitely be adapting new technologies in the near future and has a lot to look forward to.
Posted in Best Practices for Merchants, Credit Card Reader Terminal, EMV EuroPay MasterCard Visa, Near Field Communication Tagged with: credit card, credit card machine, debit, electronic credit card, Electronic Data, EMV/chip, merchants, mobile, nfc, PIN, point of sale, POS, processing industry, terminals, transactions, visa
March 31st, 2016 by Elma Jane
E-commerce – the process of using the Internet or computer networks in order to buy or sell information, services, or products.
Everyday people go on the Internet and make purchases for different products or services, just like they would in a store. The act of buying or selling over these networks allows for secure paperless transactions to happen electronically.
Electronic transactions have been around for quite some time involving business to business transactions over private networks in the form of EDI. Electronic Data Interchange (EDI), which was a transfer of electronic data from a computer to another computer and Electronic Funds Transfer (EFT), which was a transfer of money electronically from a computer to another in order to do business with each other.
Accepting online payments is very rewarding. If you’re new to e-commerce keep things simple check out our NTC e-Pay the NO SHOPPING CART E-Commerce Solution!
Posted in Best Practices for Merchants, e-commerce & m-commerce Tagged with: e-commerce, Electronic Data, electronic transactions, online payments, payments, transactions