veryone's talking about card transactions at quick service restaurants (QSRs), and the numbers are there to support the buzz. Visa USA reported that the number of fast food card-based purchases accelerated in 2003 as more QSRs made those options available for their customers.

The QSR category, a $138 billion market, is embracing cashless payments. Customers spend more this way than with cash, and the time it takes to move them through the line is dramatically reduced.

Even though less than 10% of all QSRs in the U.S. accept cards for payment, Visa said that consumers made $6.5 billion in Visa card purchases at QSRs in 2003, an increase of 105% over 2002. More than two-thirds, or $4.6 billion, of that total were processed on Visa check cards.

According to Visa research, 64% of its check cardholders have used their cards at QSRs; most consumers used the check cards because of convenience, with 50% of them citing speed and time saved as the primary benefits.

Visa is working with several fast food chains and electronic payment technology providers to enable card acceptance and ensure that cashless payments continue to grow. In order for that to happen, and to develop solutions that will meet the needs of the market, Visa feels it's necessary to understand the business models and payment environments of QSRs.

Visa said it is developing QSR point-of-sale solutions for both inside and outside the restaurants, including cardholder-activated systems, similar to pay-at-the-pump systems.

These solutions are especially useful at drive-throughs, where the majority of QSR sales take place.

Visa has developed a return on investment tool that lets QSR operators analyze magnetic stripe card acceptance. Visa said it also consults with QSR owners on ways to integrate cashless payments with existing cash environments.

Based on more than 100,000 transactions at two major QSR brands over a six-moth period, Visa said the average payment card purchase was 30% higher than cash purchases. 96% of payment card users were satisfied with the speed of service.