Financial

Study: My Understanding of Businesses

How to Credit Card Readers Work?

In accepting credit point of sale, credit card readers play a very important role in the business. Credit card readers are not only limited into reading and scanning credit cards, but they can also read employee cards, consumer cards and also gift certificates. The most basic role but the most crucial role done by the credit card reader is to read the credit card in order to complete a made transaction. What makes it very critical is that the credit card reader should interpret and transfer the information from the credit card of the customer and inform the business person if the customer’s credit card still has the enough credit in order to make the purchase.

A common thing that merchants ask the customers right before taking the credit card is they ask what type of credit card is the customer going to use, and there is also a black stripe at the back of the credit card and this stripe stores all the valuable information about your credit card which is important in validating transactions. Reading the embedded information in the black stripe at the back of the credit card requires swiping it through the credit card reader and there, the information goes to the central tracking and the billing system which will also pass on the information gathered from the transaction to the customer’s credit card company. The amount that is needed for the purchase is checked and validated by the issuing bank and compares it to the information that was from the credit card, if it is below or above his or her credit limit and after the issuing bank does that, the credit card company then sends a confirmation.

Almost all of the people have seen or encountered a credit card reader in the mall or while making purchase in some places and they are those things that have a magnetic stripe reader, which reads the information of your card through the black strip at the back of it, a keypad where merchants type in the information needed for the completion of the purchase and a small screen to display the information being fed into the credit card reader. In order to attach the credit card reader to a machine, you are going to need a serial port, or a usb cord, and it is also worth mentioning that some of the credit card readers used in the market today have built in printers where they print their receipts while some do not have, but can still be connected to a separate printer.

Mobile credit card readers are also now gaining popularity due to an increasing population of business people that does their business while traveling a lot, because mobile credit card readers are small in size and is also very lightweight, which makes it easy to carry around.

Resource: more info here