FPS QR Code Collection Tutorial | How to Use FPS QR Code for Merchants? A Practical Guide

Since the Hong Kong Monetary Authority (HKMA) launched Faster Payment System (FPS), instant transfers have become an integral part of daily payments for Hong Kong citizens. To further streamline the transaction process, FPS QR Code payments emerged. Merchants can collect payments via a single QR code, allowing customers to simply scan and pay, eliminating the tedious steps of entering phone numbers or bank accounts. How exactly does FPS QR Code work? What should merchants pay attention to when setting it up? This article will thoroughly break down the mechanics and advantages of QR Code payments.

What is FPS QR Code Payment?

Generally, FPS requires the payer to manually enter the recipient's phone number, email address, or FPS ID. FPS QR Code, on the other hand, pre-encodes this payment information (including recipient name, identifier, and even specific transaction amount) into a QR Code. Customers only need to open their FPS-enabled banking app or e-wallet, scan the QR Code, and the payment details will be automatically filled in, greatly improving payment accuracy and speed.

How to Use FPS QR Code for Payments? A Quick Look at the Process

Customer Scans FPS QR Code to Pay

• Open a banking app or e-wallet on your phone (e.g., PayMe and other FPS-supported banking apps; some e-wallets like AlipayHK, WeChat Pay HK may vary depending on payment method and merchant settings).
• Select the 'Scan' or 'Scan QR Code' function.
• Scan the FPS QR Code displayed by the merchant.
• Verify the recipient's name and amount (if the QR Code doesn't pre-set the amount, you'll need to enter it manually).
• Perform biometric authentication or enter a password to confirm payment.

Merchant Confirms Receipt Instantly

• Once the customer completes payment, the merchant's payment device or banking app will receive an instant notification.
• The merchant should verify the transaction reference number or confirm that the payment amount has been credited.

What's the difference between FPS QR Code payments and traditional FPS payments?

Method of Operation:

• Traditional Payment: Payer needs to manually enter the recipient's phone number, email, or FPS ID, involving more steps.
• QR Code Payment: Payer simply scans the merchant's QR Code, and the system automatically fills in all payment details.

Reconciliation Efficiency (A Must-Read for Merchants):

• Traditional Payment: After funds are credited, merchants often have to verify screenshots or manually reconcile accounts.
• QR Code Payment: Can achieve automatic reconciliation through transaction reference numbers in conjunction with the banking system.

Applicable Scenarios:

• Traditional Payment: Suitable for sending money to friends and family, remote transfers.
• QR Code Payment: Face-to-face payments, small business operations.

Which Merchants are Best Suited for FPS QR Code Payments?

• Retail Small Shops and Markets: Limited space stores, no need for large cash registers, a single QR Code sticker is enough for collection.
• F&B Industry: Customers can directly scan the QR Code on their bill to pay, reducing queuing time.
• Online Stores and Instagram Shops: Send QR Code images to customers, avoiding embarrassing input errors.
• Taxi and Transportation Industry: Drivers display a QR Code for quick payment when passengers alight.

Common Use Cases for FPS QR Code Payments

• Bill Payments: Many utility bills (water, electricity, gas) and government payment slips now offer FPS QR Codes for instant payment.
• Online Payment Gateways: E-commerce websites generate one-time dynamic QR Codes on their checkout pages.
• Vending Machines: Screens display payment QR Codes for customers to purchase drinks or snacks.

Are there fees for FPS QR Code payments? Is there a limit?

• Fees:

For individual users (P2P), using FPS is typically free. However, for merchants (B2C), banks or payment service providers usually charge transaction fees. The rates depend on transaction volume and contract, generally lower than credit card fees.

• Transaction Limits:

Payer: Subject to their bank account's daily small transaction limit (which can be increased by the user).

Recipient: Merchant payment limits are generally higher than individual accounts. The actual amount depends on the bank, merchant type, and risk settings. Specific details should be checked with the opening bank.

What are the most common problems merchants face when using FPS QR Code payments?

Scattered payment records, difficult reconciliation

If using QR Codes from multiple banks or e-wallets simultaneously, merchants need to log into multiple backends for reconciliation at the end of each business day, which is very time-consuming.

Complicated refund process

Traditional FPS refunds often require manual transfers, prone to errors and cumbersome.

Prone to errors during peak hours

During lunch or peak hours, relying solely on staff to check customer's 'successful payment' screenshots is unreliable and easily susceptible to fake screenshots.

Wonder Terminal QR Code Payment | Instant T+0 Transfer, Supports 34 Electronic Payment Methods

Wonder Terminal is specifically designed to solve payment challenges for SMEs:

One device for multiple payment methods and electronic payment options

Wonder Terminal supports generating dynamic FPS QR Codes and is compatible with over 34 payment methods including Visa, Mastercard, Alipay, WeChat Pay. Merchants don't need to display multiple QR Code stickers at the counter, one device handles all customer needs.

Instant display of transaction data, reducing disputes

After a customer scans the QR Code on the Wonder Terminal and pays, the system instantly confirms the payment status and prints a receipt, ensuring every QR Code payment is genuinely received.

Centralized management of collections and refunds, simpler reconciliation

All transactions processed through Wonder Terminal are automatically synced to the cloud backend. Merchants can view real-time reports anytime, and for refunds, a simple operation on the terminal can return the funds to the original payment method, significantly improving operational efficiency.

How can QR Code payments help small businesses with cash flow?

Credit card payments typically take 1-2 business days to settle, while the biggest advantage of FPS is its extremely fast fund circulation. Through service providers like Wonder, merchants can even achieve T+0 same-day settlement, getting funds on the same day, greatly reducing the pressure of inventory procurement and covering operating expenses.

Are QR Code payments safe? What should merchants be aware of?

QR Code payments are highly secure as all transactions are processed through encrypted banking networks.

Merchants should note:

• Regularly check payment codes: If using static stickers, ensure they haven't been tampered with or replaced by malicious individuals.
• Verify credit notifications: Don't just rely on the customer's phone screen; always confirm with your bank notification or POS machine.

FAQ

Can FPS QR Code be used for in-person payments?

Absolutely. FPS QR Code payments are scan-and-pay, making them very suitable for retail stores and market stalls for on-site collections.

Can FPS QR Code payments be refunded?

If using a personal bank account for collection, merchants need to manually transfer refunds. Currently, using merchant payment solutions like Wonder Terminal allows for direct refund initiation through the system, and funds are returned to the customer's original payment method.

What should I do if an FPS payment isn't received?

First, ask the customer to confirm if their bank has debited the amount. If the customer confirms the debit but the merchant hasn't received it, keep the transaction reference number and contact your bank or payment service provider for inquiry.