POI (Point of Interaction)

POI, or Point of Interaction, refers to the specific location or device where payment data is initially read from a card during a transaction. This term encompasses both the hardware and software components involved in the electronic acceptance and processing of payment transactions. A POI setup is essential in facilitating the interaction between the cardholder and the financial transaction system.

The hardware component of a POI can include devices such as POS (Point-of-Sale) terminals, card readers, and other types of electronic payment terminals. These devices are capable of reading information from various types of cards, including those with magnetic stripes and embedded integrated circuits (chip cards). The software component, on the other hand, manages the processing of the transaction data, ensuring the information is captured, encrypted, and transmitted securely for authorization and completion of the payment.

POI systems can be either attended or unattended. Attended POIs are typically found in environments where a cashier or a clerk is present to facilitate the transaction, such as retail stores or restaurants. Unattended POIs are commonly seen in self-service settings like kiosks, gas pumps, and vending machines, where the customer interacts directly with the payment system without the presence of an attendant.

The integration of these systems allows for a seamless and secure method for consumers to conduct transactions, whether they are making purchases, checking balances, or performing other financial activities. POI technology plays a critical role in the modern payment ecosystem, providing the infrastructure needed to support the increasingly digital and mobile financial transactions in today's economy.