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Credit Card Reader


As the name suggests here in this article we would getting to know about the basics of Credit Card Reader, working concept behind it and their types/varieties available in the market.

What is a Credit Card Reader

Credit card reader is a machine the reads the information available on a credit/debit card. Banks and Merchants use card readers in their ATM’s and Merchant Card Machines respectively. This allows customers access to their bank accounts like:

  • Money Withdrawals
  • Mini Account Statement
  • And many more services.

All without the need of physical presence of a teller.

Working Concept Behind Credit Card Reader

A credit/debit card has card owner’s personal info i.e.:

  • CardHolder’s Name
  • Account Number
  • Card Expiry Date
  • Card Validation Value (CVC) &
  • Card Validation Code (CVV)

in either its:

  • Magnetic Strip
  • Microchip or
  • Both

Card reader decodes the information present on the card and transmits the same to a payment processor for cross verification. Post successful cross verification i.e. availability of sufficient funds for clearing the transaction, the merchant completes the sale.

Some Credit Card Readers available in the market

  1. Square Contactless and Chip Reader

Those small businesses who use Square POS app, this card reader is the best choice for them. It is small and modern card reader that facilitates quick and easy payment acceptance from:

  • Credit Card
  • Debit Card
  • EMV Chip Cards
  • Apple Pay &
  • Android Pay.

2.Future Credit Card Reader

This is the best choice for businesses who want to accept credit card payments without incurring big after costs. It is a 3-track magnetic stripe reader, compact in size and compatible with both laptop & desktop systems. It has multiple uses like:

  • Credit Card Processing
  • POS Control
  • ID verification
  • And even Employee Attendance capability

It has a Bi-directional swipe feature and comes with a one year warranty.

To conclude, both merchants, banks and credit/debit card owners, combined benefit from card readers as they can do sale and purchase of products/services respectively all with the use of Credit Card Reader machine.