When it comes to choosing a credit card reader for your business, there are a few things you’ll need to take into account. First and foremost, you’ll need to decide which type of reader you need – whether that’s an all-in-one solution or a simple card reader that plugs into your existing point-of-sale system.
List of Types of Credit Card Readers Available
There are a few types of credit card readers out there, and each has its unique benefits. Here’s a quick rundown of some of the most popular options:
- Magnetic stripe card reader: This type of reader reads the information stored in the magnetic stripe on the back of a credit card. It’s fast and easy to use, making it a popular choice for many businesses.
- EMV chip card reader: This type of reader reads the information stored in the EMV chip on the front of a credit card. EMV chips are more secure than magnetic stripes, so this is a good option for businesses that process high-value transactions or store sensitive data.
- Contactless card reader: This type of reader reads the information stored in the contactless chip on the front of a credit card. Contactless cards are more convenient than traditional credit cards since you don’t have to swipe or insert them into a reader.
- NFC-enabled mobile device: This type of device can read the information stored in an NFC chip on a credit card. NFC (Near Field Communication) is a newer technology that’s becoming increasingly popular.
- Keypad: A keypad is a simple way to read credit card information. You’ll need to enter the card number and expiration date manually, but it’s a good option if you don’t want to invest in a more sophisticated reader.
- Biometric reader: This type of reader reads the information stored in a fingerprint or iris scan. Biometric readers are more secure than traditional credit card readers since they’re less likely to be fooled by fraudulent cards.
- Optical character recognition (OCR) reader: This type of reader reads the information stored in an optical character recognition (OCR) image. OCR images are created when you scan a document or take a picture of it. The information from the image is then converted into text that can be read by the reader.
- Magnetic ink character recognition (MICR) reader: This type of reader reads the information stored in a MICR code. MICR codes are used on checks and other documents where accuracy is important.
- Barcode reader: This type of reader reads the information stored in a barcode. Barcodes are commonly used to track inventory, and they can also be used to store credit card information.
- QR code reader: This type of reader reads the information stored in a QR code. QR codes are two-dimensional barcodes that can be scanned with a smartphone or other mobile device.
- Smartphone: Many smartphones have built-in credit card readers that can be used to read the information stored in a credit card’s NFC chip. These readers are usually faster and more convenient than traditional credit card readers.
- Tablet: Some tablets have built-in credit card readers that can be used to read the information stored in a credit card’s NFC chip. These readers are usually faster and more convenient than traditional credit card readers.
- Laptop: Some laptops have built-in credit card readers that can be used to read the information stored in a credit card’s NFC chip. These readers are usually faster and more convenient than traditional credit card readers.
- Desktop computer: Some desktop computers have built-in credit card readers that can be used to read the information stored in a credit card’s NFC chip. These readers are usually faster and more convenient than traditional credit card readers.
- Kiosk: Many businesses use kiosks to process payments, and these kiosks often have built-in credit card readers. Kiosks are a convenient way to accept credit card payments since they’re typically located in high-traffic areas.
- Payment Gateway: A payment gateway is a type of software that allows businesses to accept credit card payments online. Payment gateway providers typically charge a monthly fee, but they offer a variety of features that can be helpful for businesses.
- Point of sale (POS) system: A POS system is a type of software that allows businesses to accept credit card payments in person. POS systems typically include a credit card reader, barcode scanner, and receipt printer.
- Virtual Terminal: A virtual terminal is a type of software that allows businesses to accept credit card payments over the phone or by email. Virtual terminals typically charge a monthly fee, but they offer a variety of features that can be helpful for businesses.
- Mobile credit card reader: A mobile credit card reader is a small device that plugs into a smartphone or tablet. These readers are typically used by businesses that accept payments on the go, such as delivery services or taxi cabs.
- Portable credit card terminal: A portable credit card terminal is a small device that allows businesses to accept credit card payments anywhere. Portable terminals are battery-powered and can be used without an Internet connection.
- Credit card processing company: A credit card processing company is a type of business that helps businesses accept credit card payments. Processing companies typically charge a monthly fee and a per-transaction fee.
- Merchant account: A merchant account is a type of bank account that allows businesses to accept credit card payments. Merchant accounts are typically set up through a credit card processing company.
- Payment processor: A payment processor is a type of software that helps businesses accept credit card payments. Payment processors typically charge a per-transaction fee, but they offer a variety of features that can be helpful for businesses.
- Credit card terminal: A credit card terminal is a device that reads the information stored in a credit card’s magnetic stripe. These terminals are typically used by businesses that accept payments in person.
Another thing to consider is compatibility. Make sure that the reader you choose is compatible with the devices you’ll be using it with. For example, if you plan on using it with an iPhone, make sure that it’s compatible with Apple Pay or other mobile payment platforms.
You’ll also want to consider any additional features that might be useful for your business, such as the ability to track sales and inventory or accept mobile payments.
Finally, consider the fees associated with the reader. Some readers have monthly or yearly fees, while others charge per transaction. Choose a reader that fits your needs and budget.
The list above is a long list of the different types of credit card readers and can leave a small business owner more confused, so it is important to reach out to a credit card processing consultant to discuss your business needs and help you decide on the best credit card reader for your business and budget.
To learn more Balanced Processing Partners is a leading credit card processing consultant that works with many partners to give you options. Please feel free to call us at (800) 354-6256 or via email at [email protected] to discuss further.