What is EDC or Electronic Draft Capture Machine?

We all make card payments, and if you are a business owner, you accept them as well. But what happens behind the scenes? Is it just a swipe? Or is there a process involved? EDC, if you are hearing it for the first time, you are bound to ask, “What is an EDC machine’s full form?” Electronic Draft Capture Machine is sometimes referred to as remote deposit capture. It has now become a necessity for everyday commerce-based businesses. So, what is EDC all about?

What is EDC or Electronic Draft Capture Machine?-

What is EDC or Electronic Draft Capture Machine?

EDC: How do you define it?

To put it briefly, Electronic Draft Capture is the future of payments. In the age of digitization, everything is set to go paperless, and we can say the same for payments. EDC is the process used by a Point of Sale system to close a financial transaction. To say it simply, electronic payments would be impossible without the Electronic Draft Capture mechanism. When you swipe your card (credit or debit) to make a transaction, EDC retrieves your banking details. It secures the funds, and then the money is transferred to the seller/merchant. 

The working: How does EDC work?

Electronic Draft Capture retrieves the money from the buyer’s account once the buyer enters the appropriate credentials. This process is secure, encrypted, and fast. EDC function occurs once the POS phase is initiated. This process uses inputted information to create a draft and deposit the merchant’s account remittance. Electronic Draft Capture is triggered automatically, or the payment is initiated once the merchant submits the list of transactions made.

Why is it so popular? Is EDC special?

In a word, yes, EDC is a valuable technology. In the post-COVID world, everyone wants to be contactless. Businesses are under tremendous pressure to adapt to the changing needs of the post-pandemic times. More and more buyers are now preferring contactless payment (and subsequent delivery). Electronic Draft Capture has transcended beyond a means of receiving payment and has become a mode of business now. EDC matters because of the following reasons:

  • It is a modern method of accepting payments alongside the POS system.
  • EDC is quick, unlike traditional cash, which would require cross-checking.
  • Electronic Draft Capture is secure and credible when accepting payments.
  • Though the business owner needs to approve the transaction, that is essentially seamless.

From a business owner’s perspective: Does it benefit you?

The unique advantage of the EDC mechanism is that it is self-sufficient to prove its utility. The speed, security, and credibility will surely help the business owners too. Other valuable highlights that are specifically important from an owner’s perspective are:

  1. Using a POS system (alongside EDC) adds value to your brand and leaves the impression that your business evolves with time.
  2. Electronic Draft Capture provides customer satisfaction. Customers don’t have to worry about their money going elsewhere, as all of it takes place through a secured gateway.

What EDC is not: EDC vs. Credit Card Authorization.

No matter how similar they sound, EDC and Credit Card Authorization are two different things. The difference between the two (EDC and Credit Card Authorization) is tabulated below:

Electronic Draft CaptureCredit Card Authorization
EDC comes into play after the authorization phase has been completed. Authorization is merely a guarantee. The payment is initiated through the EDC. It creates the electronic bank draft while the authorization double-checks the customer’s paying ability.The card is swiped at the EDC terminal; then, there’s a correspondence between the terminal and the buyer’s account. When the purchase is approved, the bank confirms that the buyer is in the capacity to purchase against the raised bill.


Changing with time is a prerequisite if you want your business to prosper and grow like an empire. POS systems do charge money, but what doesn’t? We all know the credit card swipe charges and the expense behind it. Electronic Draft Capture is going to become increasingly popular and unavoidable. Today is the day to make the right move. Evolve and imbibe the latest technologies into your business and watch it grow like never before.

We hope this guide serves you everything you need to know about EDC from scratch, like an EDC machine’s complete form.

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