Most Magstripe Readers Are Separate Devices That Communicate With a Pos Terminal.

If your business accepts any kind of plastic cards for customer payments, you absolutely must have a device known as a credit card reader. These days, readers come in many different shapes and forms. It makes sense to take the time to learn about them so that you can choose the best one for your retail location.

HOW CARD READERS WORK

Regardless of the type you ultimately decide on, credit card readers all work in the same way. They take the information from the customer’s credit card and then transfer it to the bank, which acts as the “middle man” and passes the data on to the financial institution that issued the customer’s credit card. That entity checks to be sure that no fraud has occurred and approves the transaction if everything is in order. All of this happens in a matter of seconds.

TYPES OF CREDIT CARD READERS

The reader you choose ultimately depends on your budget as well as who your customers are and how they prefer to pay. The following are the most popular types of readers:

• Terminal. This connects to your bank via your phone and an internal modem and is one of the most traditional models. If you buy a splitter, you can ensure that your telephone calls are not disrupted. This type of reader is often known as a credit card machine as opposed to the cube credit card reader below that connect to smartphones and tablets and use a mobile app to process transactions via a wireless or physical connection and WiFi or a cellular signal.
• Headphone jack connected. These readers connect to the 3.5mm headphone jack in older phones and newer devices by means of adapters.
• Bluetooth readers connect wirelessly using Bluetooth technology and are quickly replacing the models that connect to devices using the headphone jack. They can use either Android or IOS and have robust security although they can run low on power quickly.
• Chip card readers have come on the scene to accommodate the new EMV cards that have become the standard in the U.S. since October of 2015. Ostensibly more secure than their magnetic stripe predecessors, the so-called chip cards are not swiped; they are “dipped” by sliding them into a special slot on an EMV reader. The customer must keep the card in place for several seconds until notified that it can be removed. These readers enable the entire encrypted transaction to take place independent of the merchant, thereby reducing the chances of data breach.
• Contactless chip credit card reader. These days, most of us don’t go anywhere without our mobile phones. Furthermore, many people have embraced the digital wallet feature built into both Android and Apple devices. The wallet allows customers to input their credit, debit and gift card information into their phones where it is stored securely. When the time comes to pay for something, the customer simply places their phone near a near-field communication (NFC)-equipped reader. It accesses the wallet, prompts the customer to type in a password or provide their fingerprint and then sends the secure, encrypted data to the reader, which passes it on for verification and completion. This entire process takes only a couple of seconds, less time than the much slower EMV payments.

Whether you are old school and prefer to process customer payments via a stationary countertop terminal or you want the most cutting-edge portable wireless method, credit card readers furnish you with the all-important ability to process your customers’ payments quickly, easily and securely. Furthermore, you can connect most of the available options to your point-of-sale system, a partnership that provides you with numerous ways to enhance the scope and efficiency of your operations. Although your options when it comes to credit card readers are numerous, dedicate a few hours to selecting the best one for your business, and you will be rewarded with increased productivity and happier customers.