What is a QR Payment Code?

 

If you are a business owner, you may have heard of QR codes—the image-based 2D code that can improve customer experiences from ordering to contactless payments. They have become popular with small businesses that want to offer a convenient way for their customers to pay for their purchases while keeping information secure. But what is a QR payment code exactly?

QR stands for Quick Response, and the codes were first introduced in 1994 by Denso Wave to track production in manufacturing. But QR codes have since come into use in a variety of ways, including as barcodes that can be scanned by mobile devices to display product information or to کد پرداخت QR make contactless payments. The data in a QR code is encoded as an alternation of black and white squares, which makes them easier to read than traditional barcodes. There are different zones in a QR code, including the data zone (pure data), error correction data, mode indicator and stop and character count, and each has a specific role to play in the scanning process.

To use a QR code for payment, a consumer needs a device capable of reading the codes, often a smartphone camera, and an app that is compatible with the type of payment they are making. When they scan a QR code, the app will open and take them through a series of prompts to complete the payment process. This can be as simple as entering a card number or using their existing ewallet like Apple Pay or Google Pay.

In addition to saving time, QR code payments can also reduce the risk of fraud. Because the codes can be scanned from a distance, it is harder for fraudsters to duplicate or counterfeit them. While this does not prevent all types of fraud, it is an important safeguard for many retailers.

The technology behind QR code payments is not without its shortcomings, however. One concern is that the use of a single app for payment can limit the merchant’s choice of partners, which could increase the potential for chargebacks. In addition, the codes do not prevent post-transaction fraud such as friendly fraud or return fraud, which is a problem that two-thirds of merchants face.

Despite these challenges, there are still opportunities for QR payments to grow. In countries where the technology is already widespread, customers have embraced QR payments at restaurants and other retail locations to order food or services without having to talk to someone or wait for a server. And the popularity of ewallets in the US means that it is only a matter of time before QR payments become commonplace here as well.