What is a PDQ machine?

Card payments now account for over 90% of retail spending in the UK, highlighting the decline of cash as the preferred method of payment.

To meet customer expectations and avoid missing out on sales, merchants need reliable card payment solutions. This is where PDQ machines come in – but what exactly is a PDQ machine?

In this article, we’ll explain the meaning of the term, how PDQ machines work, the different types available, and why having the right PDQ machine is essential for your business.

PDQ: a quick way to take card payments.

PDQ stands for “Process Data Quickly.” A PDQ machine is basically any device that lets merchants process credit or debit card payments electronically, swiftly and securely. In other words, “PDQ machine” is just another name for a card payment terminal, often also called a card machine, card reader, or chip-and-PIN machine.

The term originated in the UK when the first electronic card terminals were introduced decades ago as a way to emphasise their speed. Before electronic PDQs, processing a card sale was slow and manual: shop staff had to take imprints of cards, call for authorisations, obtain signatures, and send paper slips to the bank. By contrast, the new terminals could verify cards and approvals within seconds, which was a revolutionary change at the time.

The first PDQ machines appeared around 1979, allowing cards to be swiped and authorised via telephone line. Back then, the machine would print a receipt for the customer to sign, and the cashier would verify the signature – a process much faster than manual imprinting but still requiring a signature.

In 2004, UK terminals adopted chip-and-PIN technology, eliminating signatures in favour of customers entering a PIN code, which made transactions both quicker and more secure. Not long after, contactless payments using NFC (near-field communication) became popular, enabling tap-and-go card payments without a PIN for small amounts. Today’s card machines typically support all these methods – swipe, chip & PIN, and contactless – although older magstripe-only payments are being phased out for security reasons.

It’s worth noting that the term “PDQ machine” is a bit old-fashioned in everyday conversation. These days, most consumers and vendors simply say “card machine” or “POS terminal”.

How does a PDQ machine work?

A PDQ machine’s job is to quickly and securely transmit payment data for approval. When a customer presents their card to pay, the PDQ terminal reads the card’s data. This can be done by inserting the chip and entering a PIN, tapping a contactless card, or even swiping the magnetic stripe on older cards. 

The terminal immediately encrypts and sends the transaction details through your payment provider’s network to the relevant card network (e.g. Visa, Mastercard, American Express), which then contacts the customer’s bank for authorisation. Within a second or two, the response comes back to your machine: approved or declined. If approved, the PDQ machine will typically print or display a receipt, and the funds are earmarked from the customer’s account to be transferred to your business (usually arriving in your account within a day or two). All of this happens almost instantaneously.

Modern PDQ machines process payments over various communications channels. Some connect via landline, but most card machines these days use the internet (broadband or cellular) to transmit data. Security is paramount – each transaction is encrypted and must comply with strict standards to protect cardholder data.

Types of PDQ machines.

PDQ machines come in several form factors to suit different business needs. Broadly, you can choose from three main types of PDQ card terminals:

• Countertop PDQ machines: Fixed, wired terminals that sit at your checkout counter, typically connecting via a phone line or Ethernet. Common in retail stores and cafes.

• Portable PDQ machines: Wireless devices carried short distances from their base, connecting via Bluetooth or Wi-Fi. Ideal for restaurants where payments are taken at the table.

• Mobile PDQ machines: Highly flexible terminals allowing payments anywhere you have mobile signal or Wi-Fi, ideal for market stall owners, mobile tradespeople, or taxi drivers.

Additionally, newer solutions like smart POS terminals or mPOS card readers use touchscreen interfaces or pair with smartphone/tablet apps. All these variations are PDQ machines at heart, offering different user experiences to suit different business needs.

Understanding PDQ machine costs.

When considering a PDQ machine, it’s important to factor in the full range of costs involved. These can vary between providers, so comparing the options helps you avoid surprises.

Hardware costs

You can either buy or rent your PDQ machine. Buying means a single one-off upfront payment, where leasing spreads the cost into monthly payments, but this can add up to much more in the long run. 

Transaction fees

Every card payment comes with a processing fee. Most providers charge a small percentage of the transaction value (often between 1% and 3%), sometimes combined with a fixed fee per transaction (e.g. 20p). Rates can differ for debit vs credit cards, and international or premium cards may attract higher charges.

Monthly fees

Some providers add recurring costs such as account maintenance fees or software subscriptions. These can cover access to analytics dashboards, customer support, or integration with POS systems. Basic providers may have no monthly fees, charging only per transaction, while others bundle services into a flat monthly package.

Setup and other fees

In some cases, you might encounter one-off costs for setting up your merchant account, shipping hardware, or early termination if you end a contract early. Always check the fine print to avoid hidden charges.

Why your business needs a PDQ machine.

Having a card machine rather than only accepting cash or bank transfers has plenty of benefits. For example:

• Meeting customer expectations: Consumers expect to pay by card or mobile phone. Accepting card payments ensures you don’t lose customers.

• Increased sales: Customers tend to spend more with cards than with cash, facilitating spontaneous and larger purchases.

• Faster, smoother transactions: Card payments are quick and reduce queue times, enhancing customer experience.

• Improved cash flow and record-keeping: Card payments improve cash flow predictability and make for fewer end-of-day till errors.

• Secure and lower-risk payments: Reduces risk of theft, fraud, and handling errors associated with cash transactions.

Key features to look for in a PDQ machine.

When choosing a PDQ solution for your business, consider things like:

• Supported payment methods: Ensure compatibility with chip-and-PIN, contactless, and mobile wallet payments.

• Connectivity and reliability: Robust connectivity with backup options ensures reliable payment acceptance.

• Portability and power: Long battery life and lightweight design are critical for mobile or portable use.

• Ease of setup and use: Simple setup via apps, intuitive interfaces, and seamless integration with your existing systems.

• Settlement and fees: Look for fast settlement times and transparent fee structures.

• Customer support and contract terms: Prioritise responsive support and flexible, no-lock-in terms.

The bottom line (with no signature required).

A PDQ machine is an essential tool for any UK business, enabling quick, secure card payments. It also reduces the hassle of handling cash, cuts down reconciliation errors, and makes day-to-day accounting smoother. For customers, it adds convenience and speeds up transactions. In today’s digital-first world, a reliable PDQ solution is essential for business growth, efficiency, and customer satisfaction.