TCS/Terminal Capture System

Terminal capture refers to the act of reading and temporarily storing the details of a credit card transaction. Terminal capture systems help the merchant collect and submit transactions for settlement. They can also assist with reconciling transactions, managing inventory, and tracking sales more effectively,

When a customer makes a non-cash purchase, the reader/terminal contacts the transaction to the issuer for authorization. In most cases, the bank will OK the sale, but no actual money has been exchanged yet. Rather, the merchant’s TCS records the associated information (card number, amount, date) and stores it in the terminal's memory until the end of the business day.

At that point, all of the day’s transactions are collected from the terminal, combined into a single group (batch), and transmitted to the payment processor for settlement. This is not only more efficient than submitting purchases individually, it’s also a necessity for some businesses. Restaurant bills, for example, may need to be adjusted to include tips prior to settlement.