You, as a business owner must ensure that transactions are processed in the most efficient manner possible. It is important to understand the differences between keyed-in and swipe credit card processing transactions.
There has been a debate about keyed-in and swipe credit card transactions for quite some time. Each method has its pros and cons. It all depends on what your business needs are. Let’s have a closer look at each option:
Swiping Credit Card Processing
Swiping is one of the most popular types of credit card transactions. Simply insert your customer’s credit cards into a reader and follow the instructions on the screen. This is the fastest and most efficient way to complete a transaction.
Swiping has its limitations. It can be very difficult to process a transaction if the magnetic stripe on your customer’s card is damaged. Swiping can also slow down transactions if there are many of them.
Businesses have many advantages to swiping credit card transactions. It’s an easy way to make payments. Customers simply need to swipe their cards to make a payment.
Swiping credit card transactions also helps to reduce fraud. Businesses can verify the identity of customers by scanning their cards to prevent unauthorized charges.
Businesses can also benefit from the data gleaned by swiping credit card transactions. Businesses can track customer spending patterns to better understand which products and services are popular, and adjust their offerings accordingly.
If you are looking for an efficient, secure, and convenient way to make payments, swipe credit card transactions are the best option.
Swiping may take longer if you have many transactions. Because each swipe must be authorized individually, this can slow down the process.
Scanned transactions are more vulnerable to fraud than keyed-in transactions in which the cardholder’s details are verified by the credit card company.
Keyed In Credit Card Processing
If you are a business owner that takes credit card payments, you will be familiar with the term “keyed in credit card processing.” What exactly is keyed in credit card processing?
Keyed-in credit card processing is the manual entry of credit card information into a point of sale (POS) system. You can either use a physical credit card reader to do this, or you can manually enter the credit card number and expiration date into the POS system.
Let’s look closer at each one of these benefits.
- Security. You give the merchant your account number, expiration date, and card number when you swipe a credit card. This information could be used to charge fraudulent charges against your account if the merchant’s security is compromised. The only thing that the merchant has when you enter your credit card information is the account number. It’s difficult for merchants to charge unauthorized fees because they don’t have access to your security code or expiration date.
- You don’t need a physical card. You can make transactions with your keyed-in credit card processing without the need for a physical card. This works well for online transactions, orders placed over the phone, and mail-order purchases. Keyed-in processing can be used to accept payments from customers without a credit card. This is useful for those who pay by check or cash.
- Higher approval rates. The processor will perform a “preauthorization” before approving the transaction. The pre-authorization gives processors more information so that they can approve more transactions. You’re likely to receive higher approval rates if you use keyed credit card processing.
When it comes to credit card processing, there are many reasons to be keyed in. Keyed-in processing is more secure and allows you to process credit cards without having to present a card. It also helps you obtain higher approval rates for your transactions. Keyed-in processing is a great way to process credit cards. But what are the drawbacks?
Keyed In’s Disadvantages:
Businesses should be aware that there are some potential drawbacks to key in credit card processing.
- Human error is possible There is always the possibility of human error in entering credit card information. Incorrect charges can result in customer dissatisfaction.
- Time-consuming. It can be tedious to manually enter credit card information. This can cause customers to wait longer and create more lines.
- Swiped Transactions have higher processing fees. Third, keyed-in transactions usually have a higher processing cost than swiped transactions. Keyed-in transactions are more susceptible to fraud.
While key credit card processing is a convenient way for businesses to process payments it is important to be aware that there are potential drawbacks. To decide if keyed in credit card processing is right, businesses should weigh the pros and cons.
Key Differences Between Keyed-In and Swiped Credit Card Transactions
Keyed-in credit card transactions are those where the customer enters their credit card information manually into a terminal or website. This is in contrast to a swiped transaction where the customer swipes their card through a reader.
These two types of transactions have some key differences. Businesses generally pay more for keyed-in transactions. Credit card processors charge higher fees for keyed-in transactions because they are considered riskier than swiped transactions.
Keyed-in transactions take more time to process than swiped transactions. The manual entry of credit card information can lead to errors that can slow down the process.
Keyed-in transactions might require additional verification measures such as entering a CVV code. This is another security measure that can help businesses avoid losses and reduce fraud.
Businesses of all sizes need to understand the differences between keyed-in and swiped credit card transactions. It is important to know which type of transaction you are dealing with so that you can make informed decisions regarding pricing, processing times, and security.
How to Get the Lowest Credit Card Processing Fees
You want the lowest possible credit card processing fees if you are like most business owners. Every penny counts when it comes to running a successful business.
There are several things you can do to get the best credit card processing deal. Let’s first look at the two major types of credit card transactions: keyed in and swiped.
Swiped transactions involve physically scanning the customer’s credit cards through a reader. Keyed transactions are when you manually enter credit card information into the point-of-sale software.
Swiping transactions generally have lower processing fees than keyed-in transactions. Keyed-in transactions are more susceptible to fraud.
If you want to reduce credit card processing fees, encourage customers to swipe their cards rather than keying them in. This is not always possible.
Restaurants, for example, cannot control whether customers enter their credit card information. In these cases, you will have to accept the fact that processing fees might be slightly higher.
There are still some things you can do, even though you cannot control whether your customers swipe their cards.
First, ensure you are using a trusted credit card processor. Many credit card processors that operate out of nowhere charge outrageous fees. Make sure to do your research and only use a well-respected credit card processor.
Second, check to see if your processor offers discounts or incentives for businesses that process many credit card transactions. Numerous processors offer volume discounts. The more transactions you make, the lower your fees.
You should also be looking for ways to improve the credit card processing processes of your business. Your fees will drop the more efficient and simplified your process.
These tips will help you ensure that your business is charged the lowest credit card processing fees.
Contact a Credit Card Processor Consultant
Once you have learned the differences between keyed-in and swiped transactions, it is time for you to speak with a credit card processing consultant who can help you choose the right option for you and your budget. Balanced Processing Partners is a top credit card processor consultant who can help you choose the best credit card processing system to suit your business.