News For This Month: Accounts

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. A credit card is the important component part of the process in transacting our businesses using credit cards. Aside from reading your credit card to complete a sale, a credit card reader also reads employee cards, customer cards and gift certificates.

It is undeniable that the use of credit cards is already integrated in our business world, and the credit card readers become a part of this process by taking part in reading and processing the cards to finish a transaction. The credit card reader’s purpose is to get the information from the credit card, pass on this information in order to check if the credit card has enough money to cover the purchase of the owner of the credit card.

By understanding the features of a credit card reader, we will be able to understand how it works and we will describe it briefly here.

When you use your credit card, you will notice at the back that it has a shiny black stripe. That shiny black stripe contains important information that is being read by the credit card reader, and this information will confirm or not the transactions.

The act of swiping your credit card will trigger the reading of information embedded in the shiny black stripe, and then the information is sent by the reader to the central tracking and billing system that process the information to the credit card company.

When the credit card company gets the information and has verified, it will then confirms to the issuing bank that the card is legitimate, and notify if the card has reached its spending limit or purchase is still acceptable.

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.

The display part of the reader comes in various types, with the bigger display as more favourable since you can view more information. There is also a reader with a backlit that proves to be advantageous when your reader is used under low lighted areas.

There are various sizes and keys in a keypad of a credit card reader, with more advantage if the bigger keypads are used. With commonly used utilities, having more keys will be a preference to set aside own key for commonly used utilities.