Credit card readers explained, and how they can grow your profits.

If you want to run a successful brick-and-mortar or online business these days, you simply must offer your customers a variety of ways to pay. In other words, cash-only retail is fast disappearing from the commercial landscape. Credit card machines come in many shapes and sizes, and if you’re a merchant, you should carefully examine your unique business and customer needs before deciding on the best model.

How do credit card readers work?

“Just what is a credit card reader?” you might be asking. Simply put, it is a device that decodes the customer information that is contained in a credit or debit card’s magnetic strip or microchip. In the case of contactless or “touchless” options, it communicates with the consumer’s smartphone or wearable device using near-field communication (NFC) technology. This allows the reader to obtain and securely transmit payment details to the processing company. Although at one time card readers were connected to stationary terminals, they are now also available as devices that can easily attach to a tablet or mobile phone, making it possible to accept payments from anywhere.

Advantages of credit card readers for your business.

If you are one of the rapidly shrinking percentage of business owners who only accept cash, it’s time to become attuned to the many benefits of incorporating card readers into your retail operations. 

• Customers will spend more money. These days, many shoppers have little or no cash in their wallets. Instead, they carry a card or two along with their smartphone. After all, bills and coins are cumbersome and easy to lose through both carelessness and outright theft. With a card reader on board, you can accept purchases that go well above whatever small amount of bills and coins someone might have rattling around in their pockets.
• Make record-keeping easier. When purchases are made using a card reader with a point of sale system, each one is recorded, with the data available for later use. Customers can receive a paper receipt or have one emailed to them, and information about the sale can easily be retrieved in case of a return or dispute. This system also makes general financial and tax-related tasks much easier.
• Boost the security of your transactions. Your card reader or full POS solution is mandated to comply with the Payment Card Industry Data Security Standard (PCI DSS). This set of requirements set forth by the major players in the credit card universe helps to minimize risk to the cardholder information you get from your customers. Although no system is fool-proof, digital security is much more robust than what you experience with cash.

Integration with other business systems.

When sales are made via your card reader, they can be recorded in your payments software. This instantly synchronizes your inventory management so that you know exactly what has gone out your door, what items are running low, and what should be re-ordered. Furthermore, your accounting and financial systems are also in the loop. When it comes time to reconcile your books and keep track of expenses, the details are already laid out for you and can be accessed with just a few clicks.

Adding credit card readers to your business is one of the most transformative steps you can take for your business. Once you do, you will instantly appeal to a whole new segment of modern customers for whom payments flexibility and choice are important. At the same time, your internal processes will run much more smoothly. Most likely, your profits will experience significant gains as well. There is no time like the present to incorporate credit card readers into your operations.