Types Of Credit Card Readers

Customers increasingly expect businesses to accept debit cards, credit cards, and contactless payments wherever they shop. Credit card readers make that possible by allowing merchants to accept payments at a countertop, around a store, at events, or on the go.

Let’s look at the main types of credit card readers available and how each one works so you can choose the right payment device for your business.

Types Of Card Readers

There are several types of credit card readers. The best choice depends on where you accept payments, whether you want an all-in-one device, and how much you’re prepared to spend.

Mobile Credit Card Readers

Mobile card readers are small devices that pair with a smartphone or tablet running a mobile POS app, usually through Bluetooth. Most accept EMV chip and NFC contactless payments, while some also support magstripe cards.

Basic readers may not include a screen or PIN pad, while more advanced models support features such as PIN debit. Most are rechargeable and designed to last through a typical sales day.

Mobile readers are generally the most affordable and portable option. However, confirm that a reader works with your preferred processor, POS app, and mobile device before purchasing it.

Smart Terminals

Smart terminals combine payment hardware and POS software in one portable device, eliminating the need for a separate phone or tablet.

Most include a touchscreen and can ring up sales, display order details, collect tips, and send receipts. Some also have built-in receipt printers, barcode scanners, or cameras.

Smart terminals work well for countertop checkout, tableside payments, food trucks, and service businesses. They offer more functionality than mobile readers but typically cost more.

Virtual Terminals

A virtual terminal is a software application that lets you manually enter a customer’s card information through a web browser or payment app. It is not a physical card reader.

Virtual terminals are primarily used for phone orders and other remote payments. They can be useful for contractors, professional services, delivery businesses, and merchants that occasionally take payments without the cardholder present.

Some processors include virtual terminal access at no additional cost, while others charge a monthly fee. Manually entered transactions also tend to have higher processing rates and fraud risk than card-present payments.

What Are Contactless Card Readers?

Contactless card readers use near-field communication (NFC) technology to accept tap-to-pay transactions. Customers can pay by tapping an NFC-enabled credit or debit card, smartphone, or wearable device that uses a digital wallet such as Apple Pay or Google Pay.

Most modern mobile card readers and smart terminals support contactless payments.

Getting Started With Credit Card Readers: Other Considerations

The right credit card reader should fit how and where your business accepts payments. Before choosing a device, compare:

• Supported payment methods
• Hardware and software costs
• Processing rates and other fees
• POS compatibility
• Portability and battery life
• Contract requirements
• Available business features

Once you understand your payment needs and total costs, you can choose a reader that works for your business and gives customers a convenient checkout experience.