Sample letter to bank requesting a credit/debit card swiping machine/terminal

With the country moving towards cashless transactions, small and big businesses are now turning to credit/debit card swiping machines. Here is all you need to know on how to apply for a swiping machine -which is also called Point-of Sale (POS) machine or Point-of-Purchase (POP) machine or Electronic Data Capture (EDC) machine.

'Cashless society' is the new catch phrase on every Indian's lips. With the Government pushing citizens to do cashless transactions, businesses, both big and small are turning to other options that can keep their business afloat. While being part of an e-wallet service is one way to get around this new 'cashless' trend, another way is to get a card swiping machine. These machines offer convenience and can be used anywhere, anytime, to complete a financial transaction.

Card swiping machines can be used for credit as well as debit cards. In banking lingo the machine is called Point-of Sale (POS) or Point-of-Purchase (POP) or Electronic Data Capture (EDC) machine. It is a small hand held gadget that is used to transfer money electronically, by swiping a bank card and entering a PIN number.

Merchants and small time business holders are heading to banks to get a POS/POP machine. The procedure for procuring a swiping machine is simple. A vendor has to write a letter (application) to the bank, requesting a swiping machine and enclose certain documents along with it.

Given below are details of what the bank will require, in terms of documents and a sample letter for a POS machine, addressed to the bank. Banks will assess the application only if it is accompanied by relevant documents and information

Here is a concise list of documents that are required to be submitted to the bank to obtain point of sale terminal –

Business details

Merchants are required to submit photocopies of any two of the following documents:

  • Col (Certificate of Incorporation)
  • Electricity bill (current)
  • Partnership Agreement (Essential for Partnership Firm)
  • Rent/Lease Agreement
  • Sales Tax Registration Certificate
  • Shop & Establishment Registration Certificate (Current)
  • Trade Licence (If petroleum products)
  • Telephone bill (Current)
  • VAT (Value Added Tax) Registration Certificate

Financial details

Photocopies of the following documents are required:

  • Bank Statement for past 6 months
  • Last Income Tax Return

Identity Proof

A copy of any one of the following documents to be submitted as proof of identity:

  • Adhaar card
  • PAN Card
  • Driving License
  • Letter from your Banker (Scheduled Commercial Bank) on the Bank's letterhead verifying your credentials - name, address & signature
  • Passport
  • Voter's identity

Address Proof

For address proof a copy of any one of the following is accepted:

  • Certificate issued by Govt. Local bodies affirming address of the applicant
  • Copy of latest electricity bill
  • Copy of latest telephone bill
  • Letter from your Banker (Scheduled Commercial Bank) verifying name, address & signature on Bank's letterhead

Sample letter to bank for POS terminal

The Branch Manager
Name of Bank
Address of Bank

Your name
Your address
Your email id
Your phone number

Subject: Request letter for issuance of POS Terminal

Dear Sir/Madam,

I am an account holder [mention type of account] with your bank, with the number [mention account number details here]. [If you have a current and a saving account mention your customer ID, instead of the account number(s) and make a mention of the same in the type of account(s) you have].

I am the proprietor of [mention your business here] and deal with hundreds of customers each day. Since my business involves trading of goods, in real time there is substantial amounts of money transaction, each day. [You may mention any other business here – and explain the transactions and need for a POS machine]. With India heading towards a cashless economy, I wish to incorporate the same in my business and provide my customers with the option of paying for purchases, through debit/credit card. In respect, therefore, I request you to issue a POP terminal to me, for use of my business.

Attached please find the following documents pertaining to my business, my identity, my finances and my address [List the documents that you are attaching].

I authorize the bank to deduct applicable charges for the machine from my account. I hereby confirm that I will pay the monthly rental charges for the machine and will bear any other levied charges.
In anticipation of a prompt reply

Yours sincerely
Your signature
Your name

Final Word

Please note the following points before heading to the bank:

  • There are different types of POS machines, you may want to check with the bank the type that would be ideal for your business
  • Counter-top terminals are perfect for retail businesses
  • Portable terminal are GPRS enabled with mobile connectivity and can hence be moved around – these machines are ideal for businesses like the hospitality sector or home delivery services
  • In case you have a retail outlet and require more than one machine, you will have to mention the numbers in your application
  • You will be asked to pay for installation & association charge, monthly rental charge, commitment charge, service charge, SIM charge, NICT charge etcetera (check with your bank for exact details)
  • Payment will also be made to the bank in case of replacement of adaptor or in case of de-installation or damage to the device

Article by Juana
Juana is a freelance writer, with years of experience, creating content for varied online portals. She holds a degree in English Literature and has worked as a teacher and as a soft skill trainer. An avid reader, she writes on a variety of topics ranging from health, travel, education and personality development.

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Guest Author: POOJA27 Dec 2016

Please - I wish to put in a request for a swiping machine for our branch. So please guide how to write that letter and help me with the application process immediately.

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