Electronic Draft Capture (EDC)

Electronic Draft Capture (EDC) is a technology integral to both point-of-sale (POS) systems and e-commerce platforms, designed to electronically capture and store transaction data for credit card payments. This system plays a crucial role in modern retail and online shopping environments, where it ensures the speed, accuracy, and security of payment processing.

At a physical POS, when a credit card is swiped, dipped, or tapped, the EDC system captures critical transaction details such as the card number, transaction amount, and time. This data is then encrypted and securely transmitted to the merchant’s payment processor. The processor verifies the transaction with the card issuer, obtains authorization, and sends a response back to the POS terminal, confirming whether the transaction is approved or declined.

In e-commerce settings, EDC systems perform similarly by handling data captured during online transactions. This capability allows merchants to seamlessly manage both in-store and online sales through a single system, which simplifies financial reconciliation and enhances reporting accuracy.

EDC systems enhance operational efficiency by eliminating the need for manual data entry, which reduces errors and expedites the transaction process. They also bolster security by minimizing the risks associated with physical transaction receipts and ensuring compliance with Payment Card Industry Data Security Standards (PCI DSS). This is because EDC systems ensure that all sensitive cardholder information is captured, processed, and transmitted securely.

Overall, Electronic Draft Capture is a foundational component of modern payment infrastructure, streamlining transaction processes at the point of sale and supporting a wide range of merchant activities in both physical and digital commerce environments.