In order to make a purchase in your store or on the go, customers need to share their credit or debit card information with you so that the payment can be processed. Credit card terminals allow you to securely capture this data, sending it on to the other players in the financial landscape for processing and approval. Because all terminals are not created equal, however, it makes sense to learn about the two major types to enable you to decide which will maximize your operations.
Connection and performance consistency
The traditional wired credit card terminals use a phone line or Ethernet cable to connect directly to the internet. This configuration type leads to a very stable connection that rarely experiences interruptions. As a result, you can expect transactions to go through with speed and consistency for the majority of the time.
On the other hand, wireless terminals rely on wifi or cellular networks. As a result, they are more susceptible to connectivity difficulties. That being said, cutting-edge wireless terminals now come with enhanced capabilities that minimize the likelihood of transaction interruptions.
Mobility
Long a bastion of brick-and-mortar retail stores, wired terminals must remain in a fixed location to continually interface with the internet. While this stationary positioning provides reliable service, it limits mobility and flexibility for the business owner.
By definition, wireless terminals allow stores to enjoy the benefits of flexibility and portability. Just as is the case with your smartphone, these terminals can travel everywhere with you, making it possible to accept payments from anywhere in your shop, across town, or even throughout the country.
Installation
Although you might not need a computer science degree, getting your wired credit card terminal up and running can take a bit of tech savvy. It requires knowledge of how to establish a secure connection and configure the system appropriately. As a result, you might need to spend extra time or money in the initial stages with your wired terminal.
By contrast, wireless versions do not need any cables or professional know-how. In most cases, you can get yourself up and running in a matter of minutes.
Security
Wired terminals must comply with the Payment Card Industry Data Security Standard (PCI DSS), a set of measures put in place by the financial industry to protect cardholder data from hackers. Additionally, the stable connections found with wired terminals reduce the chances of signal interception and associated data thievery.
Like their counterparts, wireless terminals must adhere to PCI rules. However, their less stable connection infrastructure can make them more vulnerable to cyberattack. This underscores the importance of robust security practices and regular updates and patches.
Cost
The initial investment cost of a wired terminal is relatively low. While you can expect to incur regular maintenance and connectivity charges, they are usually very affordable.
By comparison, wireless terminals will cost you more both in the beginning and on an ongoing basis. Expect to shell out money for cellular data plans, wifi subscriptions, and maintenance. In spite of this, however, many businesses opt to spend the extra money because of the added mobility and flexibility a non-fixed terminal provides.
Purchasing experience
While wired solutions lead to stable and reliable connections that foster a consistent purchasing experience, wireless hardware’s mobility and flexibility offer added advantages.
There is no doubt that the uninterrupted purchases made possible by a wired terminal can have benefits for a business. However, the fixed nature of the system can result in long lines at the register that can frustrate staff and customers alike.
On the other hand, wireless terminals can complete purchases anywhere. This enhances the in-store experience by allowing you to take payments on the sales floor. Moreover, this portable option enables you to make your products available to an expanded range of customers in their homes, at pop-up markets, fairs, and anywhere else that gives you permission to sell.
Which type of terminal you choose depends on your unique business needs and goals. For companies looking for stability, security, and cost-effectiveness at a fixed location, wired terminals might be ideal. On the other hand, wireless models are often well-suited to owners seeking mobility, flexibility, and an optimized customer experience. The choice is yours.
North is a leading financial technology company that builds innovative, frictionless end-to-end payment solutions designed to simplify and grow businesses of all sizes. From the front door, to the back office, the developer world, and partnerships that expand the payments landscape, North offers proactive, comprehensive merchant services, in-house processing, and more.
