Credit Card Readers: What They Are and How to Use Them

Introduction To Credit Card Readers

Imagine this: a customer walks into your business and browses for several minutes before going to the checkout counter. They’ve got a variety of items in their basket and are sure to make you a pretty penny. When the customer reaches the checkout counter, they pull back and sigh.

A sign on the counter reads, ‘CASH ONLY’.

“Sorry,” the customer says, shaking her head, “but I only use credit cards.”

You spend the next few minutes putting the items back on the shelf while the customer takes her business somewhere else.

This is a danger of not accepting digital payments in the year 2019. If your business doesn’t have twenty-first-century technology, it will be difficult to attract the necessary clientele to keep operations running smoothly. For this reason, it’s crucial that you take the time to learn about credit card readers and swipers so that you have the tools to take your business to the next level.

In this guide, we will go over the fundamentals of credit card readers and examine how you can use them to boost your business. We’ll also take a look at some of the best credit card readers on the market to give you a better idea of which brand is right for. With this being said, it’s time to jump in!

What are Credit Card Readers?

To begin with, let’s answer a simple (yet critical) question: What exactly are credit card readers? These nifty devices allow your business to accept credit and debit card payments to help modernize payment methods and grow clientele. Traditionally, these readers have been linked to stationary payment systems or point-of-sale terminals, giving businesses an alternative way to receive client purchases. More recently, these credit card readers have been linked with Android and iOS mobile operating systems to further diversify business payment options.

You might still be wondering how exactly these credit card readers work. They work to decode the specific payment information contained in a consumer’s credit card magnetic strip or chip. These machines work electronically to process payments at quicker rates and give you access to your money faster than ever.

There are several things you should keep in mind about your credit card processor before you make your purchase. Let’s take a look at a few:

Most Come with a Fee

Unlike direct cash, payments made through credit card readers often come with a fee. These come in the form of interchange or convenience fees that can range anywhere from 1.5 to 4% per sale. As such, you’ll need to plan when it comes to prices. You may find it easier to build in these fees into your prices. Still, some businesses find it best to be upfront about their pricing structures. It’s not illegal to charge more for debit and credit purchases, so long as you still allow alternative payment methods such as cash and check.

Not All Created Equal

You’ll want to pay particular attention to the type of credit card swiper you are buying. Simply put, some options accept more than others. To maximize the amount of money received, you want to make sure that you are buying a versatile machine that accepts a variety of credit card types and works through many platforms. In upcoming sections, we’ll discuss this diversity in greater detail so that you can find the credit card swiper right for you.

Who Uses Credit Card Readers?

Many business owners make the mistake of thinking they do not need credit card readers. Despite this, data reveals that technological shifts have fundamentally altered the way that millions of consumers do business. While it may seem okay at first to accept only cash payments, there are thousands of potential customers who may turn away from your business because of such a policy.

Knowing this, it’s time to make the switch to credit card swipers if you haven’t done so already. No matter your business type, you’ll want to expand your payment diversity so that you can service a wider variety of clients and maximize profits.

With this in mind, it’s time to take a more detailed look at the different types of credit card reader available for your business.

Types of Credit Card Readers

So you’ve decided to buy a credit card reader for your business. The only question that remains now is: what type? As it turns out, there are a variety of credit card readers, each with their strengths and weakness. For this reason, it’s important that you understand what’s out there so you can find the right machine for your business.

In this section, we’ll go over some of the most popular credit card readers, including mobile readers for iOS and Android. With mobile readers, we need to keep in mind micro-chip options that give you even more payment versatility and flexibility.

1. Mobile Credit Card Readers

With the growth of mobile technology has come to the emergence of mobile credit readers that work on all major platforms to provide companies with an easier way to accept consumer payments. Specifically, these readers are designed to work with both iPhone and Android systems so that you can help transactions straight from your mobile device.

How do these credit card readers work? It’s simpler than you may think: to use, simply connect your reader to your phone via USB port and follow setup instructions. Assuming you’ve bought the right device, you’ll be able to accept payments instantly.

What’s more, businesses that use mobile credit card readers can also use these devices to collect data, verify identities, access control, and timekeeping. This makes them versatile devices that can be used to perform a variety of merchant services. This means that you should consider using mobile credit card readers for iPhone or Android phones to streamline your business operations and attract more consumers.

2. Chip Readers

To accept more payment options and better protect your business against fraud, it’s recommended that you invest in a credit card reader that reads both the magnetic credit card strip and the micro-chip imprinted into the card. This will allow you to service more clients and make your business transactions more secure.

Fortunately, there are a variety of options on the market that work with both traditional point-of-sale terminals and with mobile devices. You should be able to find a reasonably priced reader that will upgrade your business’s payment structure—opening you up to more profits.

Best Credit Card Readers on the Market

Against this backdrop, let’s take a brief look at three of the best credit card readers on the market. These readers work both with mobile devices and traditional payment systems to give you the ultimate versatility for your business. If you’re looking to expand your merchant services, make sure to check out these amazing credit card swipers!

1. Osayde Credit Card Reader

What makes this moderately-priced option from Osayde the top of our list? For starters, it’s one of the most versatile for its price. You use this superior device to accept a variety of credit and debit card payments, and you can also use it to create and erase magnetic strips. This means that it’s the perfect tool for creating secure employee badges for your organization. With twenty blank cards included, you’ll be able to use this device for a variety of purposes.

The Osayde Credit Card Reader is a great option mid-sized business that has a moderate volume of credit card transactions. This device comes with a USB connector so that you can connect it to your point-of-sale device and start any credit or debit card transaction. The Osayde is compatible with Windows and requires a computer for proper setup. Take advantage of this superior option to give yourself a leg up over the competition.

2. Square Credit Card Reader

Looking for an option that won’t break the bank? If you’re the owner of a small business that looks to manage only a small number of credit card purchases, the Square Credit Card Reader is perfect for you. This budget device is compatible with iPhone and Android phones and can be plugged into tablets to give you the ultimate versatility.

The Square Credit Card Reader comes free with a Square Point of Sale app that allows you to track key transaction data. This app gives you the flexibility to monitor your sales and keep an eye on your finances. What’s more, due to its small size, it makes the perfect device to take with you if your business runs on the go.

Customers love Square Credit Card Reader because it comes with no monthly subscription or recurring fees. Instead, merchants are only asked to pay the 2.75% rate that comes with each credit card transaction. This makes the credit card and services associated with it one of the cheapest in the market. It’s no wonder, that both small and mid-sized businesses use this mobile credit card reader to cover their electronic transactions.

3. PayAnywhere

PayAnywhere offers a cheaper way to process electronic transactions. Working with both Android and iOS phones, this incredible mobile credit card reader comes with absolutely no recurring fees. Instead, users pay only the 2.69% flat rate that’s associated with each credit card transaction. The best part about this credit card swiper is that funds are deposited into your account the next day. This gives you quick and timely access to your business profits.

PayAnywhere is a perfect option to expand your merchant services and give you the that competitive edge.

Should You Use a Credit Card Reader?

Still not sold on using a credit card reader for your business? Let’s take a moment to review a few of the major benefits of using a credit card reader for your organization. Keeping the following information in mind, credit card readers can help you grow your business and your brand loyalty.

Specifically, a credit card reader can help you to:

1. Gain the Competitive Edge

If your primary competition is other local small businesses, credit card readers can help you to gain that necessary upper hand. It’s as simple as this: the business that can attract the most customers wins. For this reason, it’s crucial that you take steps to grow your clientele and enhance your brand image. By doing so, you’ll be able to make your business a local hotspot and grow your profits like never before.

2. Expand Merchant Services

Against this backdrop, you’ll be able to use this extra cash to expand your merchant services. Business upgrades and more diverse goods and services are the results of greater profits, and you can use this as leverage for even more business. Take advantage of credit card readers to channel new growth into your business and increase your profit margins.

The Bottom Line

The right credit card reader can do wonders for your business.

If you’re looking to get out of the cash-only prison, it’s time that you use this article as your ultimate guide to finding the credit card reader that’s right for you. By understanding what a credit card reader is and what it can do for your business, you will finally be able to grow your merchant services.

Don’t waste any more time! Grow your profits today by finding the credit card reader that’s right for you. With both computer-based and mobile options available, you are sure to find something that works for your business. A credit card reader can open your business up to more profits than you’ve ever imagined, so use this guide to take that next leap today!