Getting Creative With Accounts Advice

Posted on Posted in Business Products & Services

The Roles of a Credit Card Reader

We use our credit cards nowadays in our purchases and we might be wondering what is that machine where our credit card is plugged in. Whenever we use our credit cards in buying and paying the products, a credit card reader is the machine that completes the process in the transaction. A credit card reader therefore is very essential to accept your purchases, and this machine can also read employee cards, customer cards and gift certificates.

Our business world has taken in the use credit cards in order to transact sales of products or services, and to complete the process, the credit card readers do the reading and processing of these credit cards so that the sale transaction is finished. The information that a credit card reader gets from a credit card will then be passed on the system and will be verified if the certain credit card has sufficient amount to pay for the purchase.

In order to understand more on how a credit card reader functions, let us briefly describe to you its features first.

Check out the back of your credit card and you will notice a shiny black stripe. Upon swiping your credit card, the information contained in the shiny black stripe is read by the credit card reader and it will validate your credit card if it contains enough funds and allow transactions.

The purpose on the swiping of the credit card is to send the data embedded in the shiny black stripe to the central tracking and billing system, then it process the information and send to the credit card company.

After getting the information, the credit card company will confirm to the issuing bank if the card is legitimate, if the amount to be purchased can be covered or if the credit limit of the card is already way below and thus sale is negated.

The simple features of a credit card reader are the magnetic stripe reader, the keypad used to enter information, and a tiny display. A credit card reader can be attached through a keyboard wedge serial port or USB, and may have a built-in printer, or attached as a separate unit.

Reader’s display part comes in several kinds and the more favourable type is the bigger display because you can view more information at one glance. There is also a reader with a backlit that proves to be advantageous when your reader is used under low lighted areas.

Keypads differ in number of sizes and keys, and generally, the bigger keypads will enhance the convenience in using. With commonly used utilities, having more keys will be a preference to set aside own key for commonly used utilities.