What is a QR Code and how does it Work? The Beginner’s Ultimate Guide

After the covid-19 outbreak and lockdown, digital payment methods have played a significant part in our everyday life. Now, most shop owners are accepting digital payments, and one of the most common and widely used payment acceptance solutions is online payments through QR codes. You can see QR codes in shops, malls, and supermarkets. However, one of the reasons QR codes are becoming popular is because it follows the norm of social distancing. Customers and merchants can deal with payment solutions without entering closeness. However, payment through a mobile number or biller code can lead to fraud, but using a QR code can eliminate the risk. QR codes are easy to create, and customers do not need additional setup to pay through them. Just a smartphone with a camera is sufficient. Let’s learn and understand more about QR code, how it works and how one can use them.

What Is The QR Code?

QR code stands for Quick Response Code; if you wonder what does a QR code look like, then let us tell you it consists of a pattern of black barcodes arranged in a framework on a white background. These codes can be learned through the QR scanner. However, today many smartphones come with inbuilt scanners. Though they are much similar to barcodes, the only difference is QR codes can store large amounts of data. Due to all such services, we do not need to stand in que for hours and face annoying challenges in banking server.

How Do You Use A QR Code?

QR codes generally create a pixel pattern, with each part containing a piece of information. In digital payments, the data can be the seller’s details, transaction details and more. At the time of scanning, the QR code patterns (the vertical and horizontal black patterns on white background) get coded by software and converted into a character string. The QR codes usually carry commands related to transactions. The sellers can generate QR codes for their shops or any fixed or variable amount. According to the order, the QR code can be generated. It can either open a payment link, confirm payment, or does any other operation as mentioned. The customer needs to scan the QR code and then transfer the amount.

However, customers who need to scan a QR code must have a barcode reader or QR scanner. They must have a smartphone with an inbuilt camera, though nowadays, many apps with the help of QR codes can be scanned easily. If you think about the advantages of QR codes for businesses, then don’t worry. We have mentioned some of the benefits below-

What Are The Features Of QR Codes?

The central feature of the QR code is a place of three squares in three corners. The overall size of the matrix can differ; the smaller the matrix, the less information and the larger the size, the more information. Because the QR code is two-dimensional, it contains more data than a one-dimensional bar code.

A QR code can freeze up to 4,296 alphanumeric characters. Unlike a barcode, it is two-dimensional, meaning it can be scanned in any direction and contain more information than a barcode. Since QR codes have more data, they allow for encryption which is helpful for payment processing.

Types Of QR Codes:

There are two types of QR codes- Static QR codes and Dynamic QR codes.

Static QR code

The static QR code contains the payment URL directly placed inside. As these QR codes are fixed, the content of the codes cannot be altered, and these codes also cannot be tracked. These codes are used for quick and simple online payment acceptance. Customers have to scan the QR code and enter the payment amount, the seller will verify the details, and the customer can generate the payment online. You must have encountered static QR codes at small shops, restaurants, medical stores, in-store retailers etc.

Dynamic QR code

Dynamic QR code provides a better payment feel for both customers and sellers. This code is editable and has additional features like password protection, scan analysis, etc. A seller can find details like how many people have scanned the code and the type of devices used for scanning. Dynamic QR codes bring the purchase amount and seller information. The customer needs to accept the transaction through a QR code application in such a case.

How Does QR Code Payment Work?

From the above discussion, QR codes are one of the best online payment solutions for sellers. Although, these codes can be observed from the display screen or paper. At the same time, the customers need to scan the code with their smartphone camera.

Below we have listed out how QR code payments can be made so that you can clear your mind on how QR codes work.

It can be done using a smartphone by scanning the code displayed on the shop’s exit, products, website etc., and making online payments.

You can scan the code provided by the seller using your smartphone. Generally, people use an app that allows users to scan the QR code and make a payment.

However, in the case of POS (Point Of Sale) transactions, the fixed amount is displayed on the seller’s POS system at checkout.

The seller generates the invoice for a specific amount and the QR code, which then displays the QR code on the smartphone screen. The customer and seller use apps for online transactions, and the seller generates the QR code with a mobile app. While the customer scans with the app, and on the confirmation, the amount proceeds to the transaction.

Some Advantages Of Using QR Code Payments:

On-the-spot payments

Along with supporting instant payment, the QR code helps online prices, which is quick compared to other methods. A customer must open the QR code app to scan the code and pay. After confirming the payment processing, the payment is made in a few seconds.

It saves overhead costs

The seller can buy something other than a third party, like a POS machine, for payment acceptance. Though the mPOS machine costs less than a physical POS machine, there is still some cost involved in purchasing, maintenance, and training. Compared to that, payment acceptance with QR can be considered a complete turnover because it just needs a scannable QR code.

Secured online payment

The code payment solutions minimize data loss and security breaches. QR code for online payments is the most secure way. QR code is a tool used to exchange information; the data is transferred with a QR code and encrypted.

Easy setup

Setting up a QR code is easy; you do not need to bear any additional cost or infrastructure setup. The code can be printed on paper and used for scanning.

Reliable solution

QR code payment methods are reliable because they reduce the risk of any error. The pattern of black boxes includes unique data, which increases the reliability of the code payment.

Final Thoughts:

After reading the above blog, you now know everything about QR code, their meaning, how it works, and what they are its benefits. Today all businesses, whether small or large, are including code payment methods that can benefit them and their customers. Online code payment is entirely safe for both the merchant and the customers. The personal data and other details are secure while paying using a QR code.

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