Partner Content

Why all businesses should have a card reader

on


What is a credit card reader and how does it work? To better understand how card readers benefit today’s businesses, it is important to learn how these devices work.

A card reader is an electronic device used to read information stored in another object. These are used to process credit card transactions during point-of-sale. Card readers can also be used to read customer cards, employee cards, and gift certificates.

More and more customers are using credit cards for purchases so businesses must be ready to accept and process this cashless form of payment. Card readers are, therefore, essential instruments to help businesses conveniently and effectively process credit card transactions.

How card readers work

“Will you be using MasterCard, Visa, or American Express?” is the usual question that you will hear when someone is paying at a retail store with a credit card. The store clerk asks for the credit card and swipes the card to start processing the payment transaction.

If you have a credit card, you will notice a black stripe at the back of the card. This stripe is the most important part of the credit card since it holds the information necessary to validate payment transactions.

When the credit card is swiped through the card reader, the information embedded will be sent to the credit card processor. The credit card processor will then transmit the data to the network and system of the credit card company. Once the card company verifies from the concerned financial institution that the customer has enough funds or available limit, the payment transaction will be validated and completed. The process may seem complicated but the entire payment transaction usually takes mere seconds to complete. 

Types of card readers

You will find a variety of card readers on the market that will suit your business requirements.

  • Mobile Card Readers: Connected via 3G, the mobile card reader is small and lightweight so it’s very suitable for mobile businesses such as couriers, and sales representatives.
  • Countertop Card Readers: Uses the store’s Internet connection or phone line to connect to the merchant service provider. This type of card reader is suitable for businesses with a reception counter.
  • Portable Card Readers: Connected via Bluetooth, it transmits the information to the base unit. The Sumup card reader is a good example. This type of card is suitable for restaurants, bars, and catering businesses.

Benefits of card readers for businesses

The age of cashless and virtual payments is here and there’s really no turning back. Card readers are beneficial to your business for different, yet important, reasons.

Growing and serving a bigger client base

Because more and more people are using credit cards to buy goods and services at physical and online stores, a card reader can help you expand your customer base. Many people nowadays prefer cashless transactions, especially the tech-savvy, younger generation. A card reader is an asset to your business because it helps you grow and serve more customers.

  • Better Security For Transactions – Many people were wary of credit card transactions in the past because cards back then were vulnerable to hacking and fraud. Now that most credit cards have the EMV (Europay, Mastercard and Visa) chip, transactions are more secure. It’s beneficial for businesses to have the latest EMV-compliant credit card reader since customers are protected with the best encryption technology for credit card payments and transactions.
  • Saves You Money – Card readers, the ones that are EMV compliant, can save you money especially where liability issues are concerned. The liability shift gave retailers and businesses the responsibility in handling card fraud cases. While the initial cost of high-tech card readers may seem like a big amount, it can protect your business from losing more in the long run.
  • Tracking and Record-Keeping – Having a card reader helps you monitor transactions and makes record-keeping easier. You will also be receiving monthly reports from your merchant service provider which you can use in managing your business records.

Improves your business’ reputation

It’s very comforting for credit card shoppers to know that they’re dealing with a business that is concerned with their safety and security. All businesses should have a card reader because it helps boost their reputation and makes the company more reliable and trustworthy.

The right tools can help your business succeed. A credit card reader is one of the most valuable tools that you can use to grow your business and improve your reputation.

About Business Woman Media

Our women don’t want to settle for anything but the best. They understand that success is a journey involving personal growth, savvy optimism and the tenacity to be the best.We believe in pragmatism, having fun, hard-work and sharing inspiration. LinkedIn

Recommended for you

What Do You Think?

Your email address will not be published. Required fields are marked *