A guide to what is a card reader?

When transitioning to a cashless society, every business will require a card reader. A card reader allows you to improve many areas of your business, however, a key area you can improve is your customer service. A card reader allows you to reduce the queuing time for customers. You can also offer your customers more options for payment, such as contactless, Chip and PIN, NFC payment, and magnetic stripe.

According to Retail Times, 83% of shoppers believe that fast-moving queues are an important part of the customer experience. This statistic demonstrates the importance of a fast card reader and how it’s essential for a smooth customer experience.

Continue reading our blog to learn everything you need to know about card readers and why your business will benefit from having one.

What is a card reader?

Card readers are electronic devices that accept card payments. It is also known as a card machine or card terminal.

Did you know that the first card payment machine was invented in 1967? It was invented by Scottish inventor John Shepherd-Barron. Card readers have advanced since then, they are now an essential piece of technology in many businesses.

How does a card reader work?

All credit and debit cards have a magnetic stripe and an electronic chip. Card readers use this to make purchases. To complete a sale, a card machine processes the information stored on the magnetic stripe or chip. Banks encoded card information on a magnetic tape laminated to the back of the card using magnetic stripes. As a result, electronic payment terminals and chip cards emerged, providing enhanced security and real-time authorisation.

Swiping the card through the card reader is how a magnetic stripe payment is made. This method of payment is becoming less common as faster card payment methods are now available. Examples include Chip and PIN or contactless.

Chip and PIN is another method of taking card payments. It is accomplished by inserting the card into the card reader. To complete a purchase, the customer enters their secure 4-digit PIN code. This method of using a card reader is faster and more secure. The card reader transmits encrypted payment information to the merchant account, which approves and processes the payment. It is more convenient and simple for customers who prefer a secure alternative to cash payments.

Another method of accepting payments with a card reader is contactless payments. RFID or NFC technology is used to power the transactions. When a customer purchases something, these radio waves exchange data with the merchant’s payment reader, such as your bank account, contactless card, or phone app. This method is very similar to the Chip and Pin method, but it is faster and more popular. “Tap and pay” is the most secure way to make daily purchases. Customers can make payments of up to £100 using contactless payments.

Why does your business need a card reader?

Using card readers to accept payments provides a number of advantages for both businesses and customers. With our credit card machine and lightning-fast connectivity, your business can accept payments in a fraction of a second.

Using a card reader to pay, is much faster, especially using contactless. It is much quicker than dealing with cash. Card payments enable you to process more transactions while reducing queues. Our card reader supports next-day settlements, which means that your earnings will be deposited into your account the following day. So, not only are payments processed at a rapid pace for customers, but you will also receive your earnings quickly.

Another advantage is that it encourages higher-value transactions, which means that customers can spend more on each transaction because they can pay with a credit or debit card. This works well for businesses because customers do not have a set amount of money to spend in cash or are likely to adhere to a budget when using credit or debit cards.

You can also present your company in a more professional light by improving customer service and providing customers with multiple fast and secure payment options. Furthermore, card readers will provide you with a variety of management data that will show your business’s sales data.

 

Like what you’ve heard so far? Then get in touch.

A card reader is a perfect solution for your business, it will allow you to keep up with the latest payment methods while also improving your customer relationships and sales. Grow your business with motto, we promise not to disappoint. Read our Trustpilot reviews to find out what our customers think.

Our card readers accept payments in a fraction of a second, with lightning-fast connectivity and security. This makes purchasing goods and services far more convenient and this is one reason why it has gained popularity. All types of businesses can benefit from card readers. Allow customers to pay in the manner of their choice.

If we’ve piqued your interest, then get in touch. Take a look at some of our other blogs and case studies to see how we’ve assisted and supported a variety of businesses.

Please contact one of our friendly and knowledgeable sales reps if you are looking for Online ordering, EPOS, Payments, or Loyalty systems. If you’re curious about how motto can assist you, fill out our form and get started on your motto journey today.

Leave a Reply

Your email address will not be published. Required fields are marked *