QR Code Payments

Introduction to Quick Response Codes (QRC's) in Payments

What are QR Code Payments?

A QR code-based payment is a method of making financial transactions using a Quick Response (QR) code, which is a two-dimensional barcode that can be scanned using a smartphone or a dedicated QR code reader.
A QR code can contain payment data by encoding the relevant information within its structure. The specific payment data included in a QR code may vary depending on the payment system or provider.

How QR Code Payments work

Pockyt, as a payment processor, plays a crucial role in decoding and extracting information from QR codes to process digital payments. Here's an explanation of how Pockyt handles this process:
  • QR Code Scanning: Pockyt receives the scanned QR code image, captured using a QR code scanner or camera-equipped device. The QR code contains the encoded payment information.
  • QR Code Decoding: Pockyt utilizes specialized software or algorithms to decode the QR code. It carefully analyzes the data modules, position markers, and quiet zone to extract the encoded information accurately.
  • Extracting Payment Details: Once the QR code is decoded, Pockyt extracts the relevant payment details from the decoded information. This includes recipient account information, transaction amount, and other necessary data for payment processing.
  • Secure Data Transmission: Pockyt establishes a secure communication channel with the payment system or financial institution involved to ensure the confidentiality and integrity of the payment information. It employs encryption and secure protocols for data transmission.
  • Validating and Authorizing Transaction: Pockyt validates the extracted payment details, conducting checks to ensure accuracy and data integrity. It also implements advanced security measures like fraud detection and risk assessment to protect the transaction.
  • Initiating Fund Transfer: Once the payment details are successfully validated and authorized, Pockyt initiates the fund transfer process. It collaborates with relevant financial institutions, such as banks or card networks, to securely transfer funds from the payer's account to the recipient's account.
  • Transaction Status and Confirmation: Throughout the payment process, Pockyt tracks the transaction status, providing timely updates and notifications to both the payer and recipient. This ensures transparency and facilitates a smooth payment experience, including confirmation messages, receipts, and transaction reference numbers.
Pockyt leverages its expertise, infrastructure, and integration with financial systems to efficiently and securely decode QR codes and extract the necessary payment information. By doing so, Pockyt enables seamless digital payment transactions for businesses and consumers.

Common QR Code Elements Encoded in Payments Use Cases

Payment Amount
The QR code can include the exact payment amount to be made. This ensures accuracy and simplifies the payment process for the customer.
Recipient Account/Identifier
The QR code can contain the account number, payment address, or any unique identifier associated with the recipient of the payment. This allows the payment app or digital wallet to know where the funds should be transferred.
Transaction Reference/ID
A QR code may also include a transaction reference or ID, which serves as a unique identifier for the specific payment transaction. This helps in tracking and reconciling payments on the merchant's side.
Additional Details
Depending on the payment system or specific requirements, a QR code can include additional information related to the transaction, such as invoice number, order details, or payment purpose.
To encode this payment data into a QR code, various encoding standards can be used, such as QR Code, Data Matrix, or Aztec Code. These standards define the structure, format, and encoding rules for different types of data, including alphanumeric characters, numeric values, and special characters.
When the QR code is scanned by a compatible app or device, the encoded payment data is extracted and processed by the payment app or digital wallet, allowing the user to review and authorize the payment.
It's important to note that the specific format and structure of the payment data within a QR code can vary depending on the payment system, provider, or industry standards. Therefore, it's crucial to adhere to the specifications and guidelines provided by the payment system or QR code standard being used to ensure successful decoding and processing of the payment data.

QR Code Technology Terminology

QR codes are composed of several important elements that enable their functionality:
  • Data Modules: The fundamental building blocks of a QR code are the data modules. These modules typically appear as black squares against a contrasting white background, although color variations are possible. The arrangement of these data modules represents the encoded information within the QR code.
  • Position Markers: Every QR code includes three position markers. These markers consist of inner and outer eyes and serve as reference points for scanners and cameras. The position markers aid in quickly and accurately locating the data modules and determining the scanning direction.
  • Quiet Zone: Surrounding the data module matrix and position markers, there exists a blank area known as the quiet zone. This space is present on all sides of the QR code and serves an important purpose. The quiet zone provides scanners and readers with a visual indication of where the QR code begins and ends. It allows for precise optical alignment and accurate interpretation of the encoded information.
By combining these elements - the data modules, position markers, and quiet zone - QR codes create a visually recognizable pattern that can be scanned and decoded by QR code readers and scanning devices. The position markers assist in swiftly locating the data modules, while the quiet zone ensures proper alignment and delineation of the QR code boundaries.
When a QR code is scanned using a compatible app or device, the encoded information contained within the data modules is extracted and interpreted. This allows users to access various types of data, such as website URLs, contact information, payment details, or any other information encoded within the QR code.
Understanding the structure and significance of these key elements empowers users to create and utilize QR codes effectively, ensuring reliable scanning and seamless data retrieval.
Last modified 6mo ago