Nowadays, the digital payment system is growing, so cashless payments are increasing. EDC machines are the answer to the business world’s need for efficient non-cash payments.
EDC machines provide a lot of convenience and security in making non-cash payments. So this tool is commonly used in many trading activities as a practical, fast, and barrier-free payment tool.
This article will take an in-depth look at EDC machines, from the definition, working methods, types, benefits, and regulations governing their use in Indonesia.
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Table of Contents
What is an EDC Machine?
An EDC (Electronic Data Capture) machine is a device used to make cashless payments. Usually, the payment will use a credit card, debit card, or QRIS.
This machine is generally found in shops, restaurants, and other business funds that accept card payments. Its presence helps the business sector in supporting fast and secure payments.
The EDC machine is equipped with a scanner that can read the magnetic stripe or chip on the card. The scanner will provide payment information to the card issuing bank. So that payment transactions can be made in real-time.
How Does EDC Machine Work?
Broadly speaking, an EDC machine works by capturing data from the inserted card and then providing access for payment authorization. Here’s how it works in detail:
- Connected to the network: In order to perform real-time transactions, the machine must first be connected to the internet or mobile network.
- Scanning card data: The card inserted by the user will be scanned to read the data through the magnetic stripe or chip on the card.
- PIN verification: Once the data is read, the payment amount will be typed in, then the user can enter a PIN to authenticate the transaction.
- Payment process: The machine will print a receipt as proof of transaction after the data is sent to the bank and authorized in real-time.
The Types of EDC Machine
EDC machines have several types that can be customized according to the needs and type of business. Here are some of the types:
- GPRS EDC Machine: Uses cellular networks, suitable for use in locations without wired networks.
- LAN EDC Machine: Uses the internet through a LAN cable, usually used in places with a stable connection.
- NFC EDC Machine: Using NFC technology, this type of EDC allows for touchless payments simply by bringing the card closer to the device.
- Bluetooth EDC Machine: Uses Bluetooth technology that allows it to connect with devices that have a digital cash register system.
The Benefits of EDC Machine
By using an EDC machine, there are several key benefits that customers and merchants can enjoy. Here are some of the benefits:
1. Increase customer convenience
One of the benefits of this machines is that they can increase customer convenience. With the ease and speed of transactions possible with this machine, it will automatically help speed up payments and reduce queues.
2. Expanded customer base
Using an EDC machine allows your customers to expand. Being able to accept various types of payments that suit their preferences can attract more customers.
3. Facilitate daily reports
This machine record all transaction processes in real-time well. This makes it easier for daily financial reports to be more rapid and well-recorded without the possibility of recording errors.
4. High level of security
Cashless transactions provide a high level of security, as customers do not need to carry cash. With PIN verification, payments become more secure and reduce the risk of fraud.
EDC Machine Regulation in Indonesia
The EDC machine uses communication technologies such as Bluetooth, NFC, cellular network (4G), or WiFi that operate within a specific frequency spectrum. In Indonesia, any Bluetooth, NFC, cellular network (4G), or WiFi-based wireless device is required to have DJID (Directorate General of Digital Infrastructure) under the Ministry of Communication and Digital (KOMDIGI).
EDC machine regulation is based on KEPMEN No. 260 Tahun 2024 for Bluetooth and NFC, KEPMEN No. 352 Tahun 2024 for cellular network (4G), and KEPMEN No. 12 Tahun 2025 for WiFi, which requires all radio frequency-based devices, including EDC machine, to meet specific technical standards before being sold in the country.
The DJID certification ensures that the product meets government safety and quality regulations and does not interfere with other communication devices. The certification process involves technical testing, such as frequency adjustments, safety checks, and compatibility with the surrounding environment.
Once the tests are completed, products that pass are listed in a Test Result Report, which confirms that the product is safe and ready for sale in Indonesia. This report reassures customers that the product meets technical standards and is secure.
For companies wanting to sell an EDC machine in Indonesia, Type Approval Certification Services for ICT Products are available to assist with this process. This service includes preparing technical and legal documents, conducting required testing, ensuring compliance with regulations, helping companies streamline the certification process, and giving consumers confidence in certified products.
