PDQ payment systems are a common tool for businesses to process customer card payments quickly and securely, especially in person. If you’ve ever paid with a card in a shop or cafe, you’ve almost certainly used one in fact. They’re a common part of the everyday retail experience, but when it comes to B2B payments, they do bring some limitations.
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A PDQ payment refers to a payment made using a customer's credit or debit card, processed through a dedicated electronic device: the PDQ payment machine. These are designed to handle card transactions efficiently at the point of sale in person-to-person transactions.
PDQ payment wise is an acronym for "Process Data Quickly". So, a PDQ payment focuses on speed for in-person card transactions. These devices are also known as card machines or Chip and PIN machines.
While you’ve probably used these machines many times as a customer, there’s actually more going on behind the scenes than you might think.
The process for a typical PDQ card payment involves:
There are a surprising variety of PDQ machines available today – choosing the right PDQ payment terminal requires matching its features to your in-person sales needs.
Think about:
PDQ machines are most suitable for businesses that work with simple transactions – they’re fast, but they’re not very flexible.
If you also sell online, send invoices, or want to offer customers more ways to pay remotely, you’ll need solutions that go beyond a physical PDQ machine.
Modern, integrated payment solutions become invaluable here. For instance, iwocaPay allows you to accept payments anywhere with an internet connection using a simple payment link or QR code, which can be added to invoices or shared via email or messaging apps.
Using PDQ card payment machines effectively can contribute to better cash flow compared to older methods:
While PDQs help speed up in-person payments, maintaining healthy cash flow, they aren’t suitable for all B2B payments – especially if it involves extended payment terms
Many business-customers rely on trade credit to manage their spending and give them time to turn their expenses into revenue. If you’re just relying on a PDQ machine, you might miss out on sales from customers who need a little more flexibility.
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Security is a core feature of reputable PDQ payment machine systems.
PDQ payment machine costs depend on who you got your terminal from, how you use it, and what extra features are involved. For example, some machines are produced by the same companies that process the transactions, where their main revenue will come from the transaction fees, rather than the cost of the machine.
Costs to consider include:
While considering these, also think about the overall cost and efficiency of your entire payment setup, including how you get paid for online sales or invoiced work.
Sometimes, an all-in-one solution that covers multiple payment scenarios with transparent pricing can be more cost-effective and simpler to manage than juggling separate systems.
Generally, a business loan isn't necessary solely for a PDQ payment terminal, as affordable monthly rental plans are common. If you're making broader investments in your business, a loan might be part of your strategy, but for the terminal itself, rental or low-cost purchase options are usually more accessible.
If your business offers trade credit to B2B customers, PDQ payment machines can play a role in certain scenarios, such as taking an initial deposit or settling a final balance in person, but they’re not suitable for a long-term strategy.
A PDQ machine is primarily for immediate payment capture.
Managing a full trade credit account, offering long term trade credit options, and ensuring you get paid without impacting your cash flow often requires more specialised digital tools.
If you want to offer your B2B customers the option to pay later (B2B Buy Now Pay Later or B2B BNPL) but you want to receive your money straight away, a solution like iwocaPay is designed for this.
You get paid upfront, and iwocaPay manages the collection from your customer, removing the cash flow risk and admin burden from your shoulders, helping you offer competitive terms without the traditional wait or uncertainty.
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No, since a standard PDQ payment processes funds immediately, a PDQ payment machine can’t set up or manage formal deferred payment plans or B2B instalment payments where the customer pays over several months.
If you have a separate agreement for an instalment payment schedule, you could use a PDQ to process each payment when due, but this is an inefficient process.
For a smoother, automated way to offer structured 'Pay Later' options to your B2B customers, especially for sales made online or via payment terms on invoice, digital solutions are more effective.
iwocaPay, for example, allows you to offer terms where your customer can spread their costs, while your business gets paid the full amount right away, without you needing to chase payments.
Yes, many modern PDQ payment systems, especially those linked to a Point of Sale (POS) system, can integrate with accounting software like Xero or QuickBooks.
The benefits include:
If you’re going through large numbers of transactions at your business every day, a connected payment system can save you hours of time managing accounting data and reconciling payments.
PDQ machines are valuable for in-person card sales, but if you’re looking to expand your business online or offer flexible terms, you might need more.
iwocaPay offers a flexible, integrated solution designed to handle payments online, via invoice, or even in-person using QR codes or payment links – with setup in minutes.
iwocaPay offers two key ways for your customers to pay:
It’s the simplest way to offer the flexibility your customers need while protecting your cash flow and credit risk.
To find out more, check out iwoca’s omnichannel payment tools here.
For B2B businesses who want to get paid instantly while offering flexible payment terms.
For trade customers who want to increase their purchasing power while keeping control of their cashflow.
