According to a study conducted in 2022, 40% of the World’s population is likely to use a credit or Debit card for purchases. Yes, there was a pandemic, but this rise was a result of a longer-term pattern in which card payments were rising and cash payments were falling. That’s why it’s crucial to implement a card machine for business.
A machine for card payments is exactly that: a machine that accepts credit, debit card, contactless, mobile, and other forms of payment at a store level. Since 1960, card payment machines have been in the market. Modern card machines come in a variety of forms—offering simple card processing features at one end of the spectrum to full-blown POS (Point of sale) system functionality at the other. To get the most out of your payment processing, you need to choose a card payment solution that aligns with your business needs.
Using card machine in your store enhance your business. Customers can pay with debit and credit cards through card machines and have their payments transferred to your merchant account. A payment processor, such as an Ethernet network or Wi-Fi, receives data from these machines. A card machine is typically thought of as a traditional hardware machine found in stores. It is important to note that card machines can be either hardware or software-based, as well as they can take on other forms such as mobile payments.
In general, there are three types of card payment solutions which are, Hardware payment terminals, Virtual terminals, and Mobile credit card readers. Even small business are now using a card machine.
How Do Card Payment Terminals Work?
Depending on the types of payments you support, a card machine can accept payments in a variety of different methods. Using a card terminal, for instance, you can swipe a magstripe card to read the cardholder data stored on its magnetic strips.
Cardholders insert their cards and enter a pin at some terminals that use the chip-and-pin method. As a result, the card is more secure and EMV (Eurocard, Mastercard, and Visa) compliant. Nowadays Emv chip card readers are an essential part of most card machines. NFC (near-field communication) transmitters enable card machines to accept contactless payments. Customers simply need to tap their cards or mobile phones (for Google Pay or Apple Pay transactions) against the card terminal and the NFC transmitter sends information to it wirelessly. Contactless payments are EMV-compliant as well.
There are also card machines that accept keyed entries for card-not-present transactions. These machines have built-in keypads that allow you to manually enter card information collected from customers over the phone or by email.
The usage of card machines is simple. Anyone with basic computer knowledge can use card payment solutions. Customers insert their payment card into the machine and enter their PIN when prompted to make a Chip and PIN payment. The process is even easier if you accept contactless payments. The payment will be processed automatically when your customer taps their card against the terminal.
If you plan to accept card payments, contactless payments, or mobile wallet payments, you will need a merchant account. Contactless payments using a card reader occur using an NFC (Near-Field Communication) signal. The payment card has a built-in chip that interacts with the card machine once it’s in proximity (within a few centimetres) to start the payment process.
In spite of initial concerns, these chips and wireless signals do not make cards vulnerable to fraud. After the card is placed close to the machine, it starts the payment process, which is not complex and instant from your perspective. Card machines send payment requests to your merchant bank (where you set up your merchant account), which asks the customer’s bank to authorise the payment. Your customer’s details will be verified when the transaction is requested (even if they’re using a contactless card, they may need to enter a PIN) and their funds will be confirmed.
If all payment details are correct and funds are available, the payment will be approved and the payment will go through. You’ll receive an instant notification that your payment has been authorised from your card payment machine within a couple of seconds.
Your Card machine will automatically notify you if any issues arise. With this benefit of card machines, you can make sure you got your payment. Within a few working days of the time, you will be credited with the amount paid.
What are the Factors to Consider to Choose a Card Machine for Business?
- Security – The first and major feature to consider is security. As card payment solutions accept cards, they handle customers sensitive card details. Choose a device provider that follows the government’s regulatory standards and guidelines.
- Seamless on-boarding – Getting a card machine for business means getting on-boarded with the device provider. You should choose a service provider that offers a quick on-boarding.
- Card acceptance – At this time, many cards are available for making payments. So, choose a card payment solution that works along with maximum card varieties.
Make sure to choose a card payment solution for your business that meets the above requirements.