EDC Basically refers to ‘Electronic Draft Capture’, It uses the technology to retrieve

customer’s banking information and the due amount. Once the amount is secured, the
money is transmitted to the merchant’s account. It is basically the POS(Point of Sale) step
that is used to close the transaction. Once the buyer’s payment is reflected in the
merchant’s account, the process is completed. All the e-transactions are dependent on EDC.

There are three broad ways in which the EDC machine can accept the payment.
1) Swipe- Cards having magnetic strips are swiped in the machine
2) Insert- Cards having micro chips are inserted in the machine
3) Tap- Cards having NFC can be tapped for the payment.

Steps in EDC Transaction.

- The merchant enters the items for purchase in the POS terminal.
- Buyer chooses the payment method.
- After the card is swiped the authorization of buyer’s account is done.
- Finally, after the sale is completed, EDC enables the initialization of funds.

Different Vendors available in India for providing well integrated EDC platform.
A) Clonet

It is a POS system that is used by Restaurants and retailers to manage the

inventory and sales.
Some of it’s features are to handle the billing, Generate receipts, split invoices,
sales analytics and workforce management.

B) Lightspeed Retail.

It is known for it’s excellent inventory management and multi-channel selling

capabilities.
Additionally it has some unique inventory features, specialized discounts, shipping
tools and gift cards.

C) Paytm,

Paytm POS Billing Software can be used for retail shop, employee management,
vendor management, online invoicing for small and large businesses.

D) Busy

It comes with Inventory and GST Billing modules

It can also be used to generate MIS reports.

E) Marg Retail.

This software is designed to fulfill all the requirements of an individual retail store
to the retail chain. It does so by generating invoices easily and quickly, reconciling
bank statement, and tracking inventory accurately.
F) Square

It comes with the real time sales data analysis and useful customer insights, It helps
communicate within a team, provides cash drawer and barcode scanner facility.

Benefits of EDC machines.

1) Security.

From Security point of view, the software vendors make sure that the data is
protected and backed up

2) Accuracy

By using a computerized system, the legible entries and automatic calculations

provides accurate data.

3) Cost Effective

From financial point of view, in the long term, EDC machines always prove to
be an effective investment.

4) Minimal Physical Contact.

The Covid-19 Situation has necessitated most of the businesses to implement

contact free payment.

5) Time effective

With elimination of manual book-keeping and reports the need for the
manpower reduces drastically.

Challenges of EDC Machines.

1) Connectivity issues
A high speed and solid Wi-fi network is must for smooth POS transaction.
2) Security Concern.

There is always a risk in POS transaction unless the system is governed by

hacking detection system.

3) Charging Issue.

The device works only if it is charged regularly

 4) Software Glitches
If there is an error from backend, the entire system collapses, so we can not
solely rely on it.

In conclusion, as a business owner if you do not want to loose on a

customer base that prefers to make payments through Credit/Debit Cards,
QR Code and other non cash payment methods, you have to opt for the
right EDC machine that suits your Business.