Credit Card Reader
Credit cards have today become an indispensable way of making payments and making purchases and have truly replaced the method of making purchases by way of cash. The important thing to note is that the credit card needs a credit card reader in order to be used. A credit card reader is a reading machine. When a credit card is swiped through the credit card terminal, it reads the data embedded in the magnetic strip of the credit card. The data on the card is then sent to the merchant/seller's account for processing the payment transaction.
The different types of credit cards can be broadly divided into three types. These are the traditional terminals,wireless terminals, virtual terminals. The traditional terminals are the most commonly used credit card readers. These terminals generally have the magnetic strip reader and have a keypad to enter the required details to complete the transactions. This type of a card reader needs to be connected to a computer which in turn should be connected to a modem to process the transaction.
The wireless terminals work with the help of a CDMA or GPRS or GSM network and do not require the computer or modem to process the transactions. These terminals are embedded with a software to process the payment over the internet through the above mentioned networks. Virtual terminals have no hardware. They are used by websites to process online payments. Though the merchant will require the required software, internet, computer and the affiliation with the banks.
Traditional terminals and wireless terminals are made by many companies. The rates for the card readers depend on the features with it. For example standard terminals are the cheapest ranging from $125 to $400. Standard terminals with attached printer range from $250 to $600. The wireless ones are the most expensive and range from $650 to $1200. The most commonly used credit card readers belong to the following companies: Hypercom, Verifone and Nurit.
There are credit card terminals which use Bluetooth technology to process payments. These terminals read the credit card details stored on certain mobile phones by way of the wireless Bluetooth frequency. Such terminals enable real time transfer of money from the buyers account to the merchants account. The Air Blue Pro is a Bluetooth enabled credit card reader developed by a company called AirCharge.
A mechant can also lease a credit car reader if he wishes to do so but the fact of the matter is that leasing a credit card reader can be an expensive affair. The cheapest credit card reader with standard features would cost as little as $250, which would be a one time expense but leasing a credit card reader for a period of more than three years could be as costly as $1500. So its advised to purchase a credit card reader than lease one.