If you deal with customers in person and would like to accept credit cards, then you’ll need an automated credit card machine. The credit card machine takes the details from the user’s debit or credit card, decrypts it, and transmits it along with the amount of purchase to the credit processor.
A credit card processor transmits the details to the bank that issued the card to the cardholder, which determines whether the transaction was accepted or rejected. If the transaction is declined, the information will be sent to the credit card machine, which prompts you to ask the client to provide another payment method. If the subsequent payment is accepted, the process of transferring the money from the customer’s account to your account will be initiated.
Since credit card machines (also known as credit card readers) are essential to the payment process, choosing the correct one is vital. This article will help businesses be aware of this essential payment processing hardware.
How to Get a Credit Card Machine
There are three ways to get a credit card machine, depending on your needs:
1. Buy a Credit Card Machine from an Authorized Distributor And Company
The credit card machine you use should be compatible with the credit processor. Because of this, the majority of companies buy their credit card equipment directly from their processor. The best credit card processors offer a range of hardware at different prices or assist you in obtaining compatible third-party equipment. You could choose one processor over the other due to the options for credit card machines.
A payment processing company could offer you discounts or free credit cards after you sign up for its services. This is a further benefit of this method.
2. Use Existing Credit Card Readers.
You can decide to change to a different credit card processor and continue to use your current card readers and other devices, such as your POS system and receipt printers, and barcode scanners, provided that they are suitable for the processor you’re switching to. For instance, Verifone, PAX, and Clover card readers can be used with different processors.
But, this isn’t always available. Certain processors are proprietary and will not be compatible with other payment processors. If you decide to switch to a processor that does not integrate with your card readers that you already have, then you’re out of luck. You’ll require a compatible piece of equipment.
Also read: 15 Mobile Payment Apps for Business
Types of Credit Card Machines
Your company’s needs and the type of credit card machine for small business. This article will provide an overview of the various types of credit card processing machines, their capabilities, and the types of businesses they’re most suitable for.
Credit Card Terminals with Wired Connections
Wired credit card terminals can be connected to the internet through Ethernet or a phone line, or to a POS system by wire. They might or may not contain a numeric pad that permits users to input the debit card’s personal identification code (PIN). They are typically about four to six inches long and 4 inches wide. They can print receipts, and some are connected to a standalone device that prints receipts.
The use of a credit card machine that has a PIN pad could be beneficial for your company. Certain processors charge lower rates for debit card transactions using PINs than debit or credit card transactions without requiring a PIN.
Wireless and Mobile Credit Card Readers
Two types of wireless credit card machines are available:
- Wi-Fi credit card readers: WiFi readers are connected to the Internet via a company’s wireless router or gateway. Some come with a wire that you can connect to the electrical outlets, whereas others are equipped with rechargeable batteries.
- Bluetooth card reader: Bluetooth credit card readers use Bluetooth technology to communicate with any mobile phone with internet connectivity or tablet. A few of these devices can make transactions offline if the internet signal is weak or not available. In this situation, the transactions are processed after an internet connection is restored.
Smart Terminals and POS Systems
Smart terminals and POS systems offer the greatest functionality. They are equipped with specially designed POS software that displays services and products and their costs for cashiers to choose from. You are typically able to add services such as warranties and shipping, record the customer’s name and other details, and enter promotional codes or other discounts and promotions.
POS system and the smart terminal are a bit different. The POS systems are stationary devices that are kept at the cashier’s counter. A smart terminal comes with POS software installed on a wirelessly connected (Wi-Fi or cellular) tablet that employees are able to use to travel to other places.
Self-service kiosks
Self-service kiosks remove the need for a cashier at each payment point. These standalone units include built-in POS systems and credit card readers. Customers can use an integrated handheld scanner to scan product barcodes.
Self-service kiosks are gaining popularity, helping retailers maximize their space and cut down checkout lines.
How Credit Card Machines Work with Different Payment Types
Before you decide to buy a credit card machine for small business, it’s important to know which payment methods you want to accept. The goal is to create sales and make it easy for customers to make payments. Different payment options can increase customer satisfaction and improve their experience.
Credit card machines are designed to handle multiple payment methods securely and efficiently:
- Chip (EMV) Cards: Inserted into the machine to read the embedded microchip for encrypted data.
- Magnetic Stripe Cards: Swiped through a reader to access stored card information.
- Contactless Payments: Utilize NFC technology to enable tap-to-pay transactions with mobile wallets or cards, such as Apple Pay or Google Pay.
- Manual Entry: Card details can be entered by hand for phone or online orders.
The machine sends payment info to the processor, verifies the transaction, and returns an approval or decline message within seconds.
Also read: Pros and Cons of Using A Credit Card to Finance Your Startup
Top 5 Credit Card Machines
Check out the following credit card hardware options when you negotiate with prospective credit processors:
1. Square Terminal
- Best for: Versatile all-in-one solution
- Features: Built-in receipt printer, touchscreen interface, Wi-Fi, and offline capabilities
- Pricing: $299 hardware; 2.6% + $0.10 per transaction
- Ideal for: Retailers and service providers seeking a reliable, portable terminal
Square Register is an integrated POS system that features two screens: an item selection screen that faces the cashier and a payment screen that is aimed at the customer. It’s stylish and sleek and can accept debit and credit cards via swipes, dips, and tapping.
2. SumUp Air
- Best for: Budget-conscious mobile businesses
- Features: Bluetooth connectivity, supports chip, swipe, and contactless payments
- Pricing: $35 hardware; 2.75% per transaction; no monthly fees
- Ideal for: Freelancers and vendors needing a simple, cost-effective solution
A portable, lightweight device that can be connected via Bluetooth to your tablet or smartphone. Accepts chip, swipe, and contactless payments. Best for small businesses, pop-ups, and on-the-go sellers due to its affordability and ease of use.
3. Clover Mini
- Best for: Retail environments requiring advanced POS features
- Features: 8-inch touchscreen, built-in receipt printer, and inventory management
- Pricing: Hardware costs vary; transaction fees start at 2.6% + $0.10
- Ideal for: Businesses needing comprehensive POS capabilities
A compact smart POS terminal with an 8-inch touchscreen, built-in receipt printer, and app-based tools for inventory, employee, and customer management. Designed for businesses and retailers that need more than just payment processing.
4. Payanywhere Smart Flex
- Best for: Businesses needing a portable terminal with a customer-facing display
- Features: Dual screens, barcode scanner, receipt printer, offline mode
- Pricing: $549.95 hardware; 2.69% per transaction; $24.95/month POS software
- Ideal for: Mobile vendors and businesses requiring customer interaction during transactions
Investopedia
A mobile payment terminal with dual screens, a barcode scanner, a receipt printer, and offline mode. It supports chip, swipe, and contactless payments. Perfect for mobile businesses or retailers who want a customer-facing display.
5. Zettle by PayPal
- Best for: Businesses integrated with the PayPal ecosystem
- Features: Bluetooth connectivity, supports all major card types, instant fund settlement to PayPal
- Pricing: Hardware costs vary; transaction fees start at 2.29% + $0.09
- Ideal for: Small businesses and pop-up stores are looking to integrate seamlessly with PayPal.
A sleek, simple card reader that seamlessly integrates into PayPal. Supports the majority of major card types or portable wallets. Ideal for small businesses looking for a fast, easy setup and direct PayPal fund transfers.
Final Thoughts
Using a credit card machine is easy. But choosing the best provider and the right machine for your business is essential to maximize efficiency while keeping costs down. If you choose to go with the basic device for mobile cards or a more advanced POS system, the most important thing is to ensure that your payment method is safe, easy, and safe for you and your customers.
Leave a comment