A Payment Terminal is a handheld electronic device that enables businesses to accept card and digital e-wallet payments to process consumer-led payment transactions.

Payment terminals process transactions through a secure, multi-step process that takes just seconds to complete:

Step 1: Card Entry
The customer presents their payment card by inserting the chip, swiping the magnetic stripe, or tapping for contactless payment. The terminal reads the encrypted card data.

Step 2: Data Transmission
The terminal securely transmits the transaction details—including the purchase amount, card information, and merchant ID—to the payment processor through an internet connection (Wi-Fi, Bluetooth or 4G).

Step 3: Authorisation Request 

The payment processor forwards the request to the card network (Visa, Mastercard, etc.), which then contacts the customer’s issuing bank to verify:

• The card is valid and active
• Sufficient funds or credit are available
• The transaction isn’t flagged as suspicious

Step 4: Approval or Decline 

The issuing bank sends an authorisation response back through the same chain. If approved, an authorisation code is generated. If declined, the customer is notified of the reason (insufficient funds, incorrect PIN, etc.).

Step 5: Transaction Completion
Upon approval, the terminal displays confirmation and prints a receipt if requested. The transaction is stored for end-of-day settlement.

Step 6: Settlement 

At the end of the business day, the terminal batches all approved transactions and submits them for settlement. Funds are then transferred from the customer’s bank to the merchant’s account, typically within 1-3 business days.

This entire process happens in real-time, usually completing within 2-5 seconds for standard transactions.

A Payment Terminal is a piece of hardware that is used by businesses to accept and process consumer-led payment transactions via debit, credit card or digital e-wallet payments. A Point-of-Sale or POS system refers to a broader spectrum of both software and hardware, which can include the cash register, barcode scanners, screen and payment terminals.

There are a multitude of different types of payment terminals available, depending on the size and type of business. Countertop Payment Terminals are devices that are often found at the main cashiering table of the business, and are usually stationary. Mobile Payment Terminals are payment terminals that have software within a mobile, tablet or another wireless electronic device that will be able to perform the same function, with the added benefit of mobility as compared to a countertop payment terminal.

The EPOS Payment Terminal accepts a majority of card & e-wallet payments such as Mastercard Visa PayNow, Apple Pay Google pay Samsung pay GrabPay Alipay+ Wechatpay, Touch n go, Kakaopay.

For Mastercard and Paynow transactions, payments are processed and paid out to the business the next day.