It then transmits this information to the payment processor, who communicates digitally with the customer’s bank or other financial institution, confirming that the funds for the purchase are available.
The card reader “reads” the credit or debit card’s information. For example, a credit card contains the consumer’s name, account number, the card expiration date, and the card’s validation code, typically found imprinted on the back of the card.Ī credit card reader is a device that decodes the personal and financial information contained in the magnetic strip or microchip of a credit or debit card. What is a credit card reader?Ī credit or debit card holds vital information on its magnetic strip or microchip (and sometimes both). Let’s jump into the world of credit card readers, giving you an ultimate guide for your business.
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With technology continually expanding consumer shopping options, understanding how to use a credit card reader is foundational to your business’s success. Additionally, chip-authenticated payments (EMV - Europay, Mastercard, and Visa) increased substantially, showing a rise of 41.6% in use in 2017 alone.Ĭredit card use doesn’t appear to be going the way of cash payments anytime soon.
Remote payments continue to multiply, as indicated by the study, showing a 22.8% increase from 2016 to 2017, compared to a growth rate of 7.2% for in-person payments. Consumers typically use credit for larger purchases and debit for everyday purchases, according to the survey.Īccording to the 2018 Federal Reserve Payments Study, in 2017, total credit card payments increased by 11.3 billion to 23.5 billion payments in all. More specifically, 54% of consumers preferred using debit cards, where 26% preferred credit. In fact, in a 2018 survey, 80% of consumers stated they prefer to use either credit or debit cards when shopping.
They can pay with cash, check, credit card, debit card, or even make near-field communications (NFC) contactless payments (Apple Pay, Samsung Pay, etc).Īlthough you don’t see many people writing a check at the grocery store anymore, you do see various types of credit card payment options - from traditional magnetic stripe payments to chip cards to wearables (think Apple Watch). Today, consumers have multiple ways to pay for goods and services.