Swipe Card Readers: Why Should You Use Them?
No matter the size or type of your business, a card swipe reader can help you stay on top of the times.
One method for small businesses and entrepreneurs to compete is to hop on board with popular tech. This way, you can get rid of the barriers between you and your customers.
We can all agree that…
Accepting credit card payments is essential.
It is the most popular payment method, so if you only accept cash, you risk losing lots of customers.
This is especially applicable when dealing with large transactions. After all, people don’t typically carry much cash.
It is true that a conventional bank card set-up can be costly. Luckily, swipe card readers that run with marginal hardware and software can keep credit overhead to a minimum.
What Is a Credit Card Swiper?
Credit card swipers, or just card swipers, are machines that read the information from the debit or credit card of a customer. The machines are known as payment terminals, point-of-sale (PoS) terminals, or EFTPOS terminals.
Card swipers come in both portable and fixed versions, and their appearance may be significantly different.
For example, early card reading devices were big and had many buttons. They resembled calculators. Newer devices are much more simple. Think of a credit card cube for an iPhone without any buttons or openings.
Swipe readers can be used anywhere. A POS system can run on your mobile device. It uses a software application to process transactions, much like a conventional POS terminal.
How Do Credit Card Readers Work?
The process is simple. Card swipers extract information from the card of the customer. This data is then transmitted to a payment processor, which collects the necessary info from the customer’s bank. Finally, the payment is approved and processed if there are enough funds in the account or on the card itself.
Keep in mind that credit card readers do not have to be linked to a computer to work. These devices use three ways to read the card information:
- Magstripe machine or credit card reader. The magnetic strip on the rear of the card collects customer data. The card must be swiped through a machine to access the info.
- EMV card readers. They were created by Europay, MasterCard, and Visa. These cards have a metal chip instead of a magnetic stripe. They are much more secure than stripe cards. The cards can be inserted or dipped rather than swiped.
- Contactless payment or NFC. These devices do not require any physical contact with the card. They only work with cards that have more advanced chips, known as RFID chips. Payments can be processed by simply waving the card in front of the credit card reader.
Swipe Card Readers: Pros and Cons
Pros:
- Allow you to accept card payments.
- Safe way to receive credit and debit card payments.
- Portable machines are great for mobile vendors.
Cons:
- Connectivity issues might delay or prevent payments.
- You have to pay expensive monthly fees to use the hardware.
- There is a potential for software malfunctions.
Of course, everything has its strengths and weaknesses. It’s best to be aware of what you can do to prepare.
For instance, a good option for small companies is to get a fairly well-valued card swipe reader. They can buy such with a one-time payment or split the cost into regular monthly payments.
Make sure that you can charge all types of cards. It is important to accept EMV but also to support older magnetic stripe cards. Also, you can get an advanced gadget that can approve NFC (contactless) transactions. A lot of young people like to use Google Pay or Apple Pay.
What Can Electronic Transfer Offer?
We are proud to say that we’ve been in the business of credit card processing needs for over
Our Point of Sale (POS) software credit card processing platform provides a solution that everyone can use. Electronic Transfer offers:
- Multiple payment options.
- Security and compliance.
- Dedicated customer support.
- Inventory management.
- Integrations with other software.
- User-friendly interface.
With our services, the payment process will be so simple that both you and your customers will be very satisfied.
Join the ranks of over 50,000 merchants that have trusted us. We have a solution for all! Don’t believe us? Just give us a call – 800-757-5453