With the growing popularity of electric vehicles, EV charging stations have become indispensable infrastructure for new energy vehicles, and the demand for them continues to rise. To achieve unattended energy refueling facilities and enhance the convenience of the payment process, many charging station companies have introduced POS credit card payment systems to enable credit card payments. This payment solution significantly enhances the user experience for end-users. The following will discuss in detail the operational relationships and steps behind the six key roles involved in the credit card payment process for EV charging stations through POS credit card systems, allowing users to better understand the principle of POS for EV Charging stations behind this payment process.
☆1. Roles of POS Credit Card Systems:
Operator: This role represents the operator of the charging station, such as the manager of a shopping mall or parking lot, responsible for the daily management, maintenance, and after-sales services of the charging station equipment.
Gateway Company: Serving as a bridge between charging stations and major payment systems, the gateway company is responsible for the secure transmission and efficient processing of payment data.
Acquiring Institution: Playing a crucial role in the payment process, this institution acts as the financial minister, responsible for transferring funds from the cardholder’s account to the charging station operator’s account.
Cardholder: The end-user of the charging station, holding a credit card and choosing to pay for charging using a credit card.
Issuing Bank: Responsible for issuing credit cards, this financial institution is primarily responsible for authorizing the cardholder’s account. After the cardholder completes the payment process for the charging station, the issuing bank allocates authorized funds to the acquiring institution.
Card Organization: Standardizing credit card specifications, organizations such as Visa and Mastercard ensure the smooth flow of the transaction payment process.
☆ 2. Credit Card Payment Process
When an EV charging station user pays for charging using a credit card, the complete payment process unfolds as follows:
Step 1: User Swipes Credit Card
The user swipes the card at the charging station, triggering the payment process.
Step 2: Operator Connects with POS Credit Card System
The charging station connects to the internet and accesses the POS credit card system. In this process, the gateway company acts as the link, ensuring that the payment request triggered by the user can be securely and smoothly transmitted to the credit card payment system.
Step 3: POS Credit Card System Initiates Request to Issuing Bank
The POS credit card system sends the charging fee deduction request to the issuing bank, requesting authorization for the charge.
Step 4: Issuing Bank Authorizes Charge
Upon receiving the user’s charge request, the issuing bank performs various validations, such as checking the card number, authorized amount, credit card validity period, and the user’s credit limit. Once all validations are successful, the issuing bank authorizes the POS credit card system to proceed with the payment.
Step 5: POS Credit Card System Initiates Payment Transaction Request to Acquiring Institution
After obtaining authorization from the issuing bank, the POS credit card system sends the payment request to the acquiring institution, enabling the institution to allocate the corresponding user consumption amount to the charging station operator’s account.
Step 6: Acquiring Institution Processes the Transaction
The acquiring institution assesses the transaction for risks and credit checks. Upon confirming the transaction’s safety and legality, the institution deducts the user’s consumption amount and transfers it to the charging station operator’s account.
Step 7: EV Charging Station Provides Power
Once the acquiring institution confirms the transaction, the charging station can provide power to the electric vehicle, allowing the cardholder to complete the charging process.
☆3. Advantages of POS Credit Card Systems
1 Enhanced User Experience:
POS credit card payment systems significantly improve the convenience for users during the charging station experience. Users no longer need to pre-fund at the operator’s location or carry physical cash; a simple swipe of the credit card completes the payment.
2 Reduced Operating Costs:
Adopting POS credit card payment systems allows EV operators to streamline their payment methods, making it more convenient to monitor and manage charging station fees and usage. This, in turn, enables operators to provide more timely after-sales services.
3 Simplified Data Management:
POS credit card systems maintain detailed records of charging transactions, providing intelligent data analysis capabilities for charging station operators. This helps optimize services for users.
4 Increased Payment Security:
The internal technology of POS credit card systems is encrypted, ensuring a robust defense against intrusion. Moreover, the involvement of multiple institutions in the system, each performing specific roles, collectively enhances the security of the credit card payment process.
5 Diversification of User Base:
The widespread adoption of POS credit card systems for charging stations brings greater convenience to users, attracting a more diverse user base for charging station operators.
By understanding the principles of POS for EV Charging stations, users can use POS payments with more confidence.
☆ 4. Future Prospects
The integration of electric vehicle charging stations with POS credit card payment systems is still in its early stages, and future developments are expected to optimize this technology further. Many new technologies, such as facial recognition, are yet to be explored. The ultimate goal is to propel the entire industry toward greater efficiency, convenience, and intelligence.