Credit Card Processing    Industry News

What makes up a Good Credit Card Reader?

Your Credit Card Reader Must Have These Features

What really makes up your ideal credit card reader? You know, deciding on a type of credit card to use as a merchant could be a daunting task as you will need to do a lot of research. You will find out there are many different options, and each comes with its pros and cons. Of course, the package that is good for one business may be different from that of others because of the peculiarity of industries, services offered and the management of such businesses.

For example, the business and payment model of those working in the field and accepts payment onsite may differ from those who own clothing stores. This notwithstanding, there are certain must-have features for every credit card reader, regardless of the size or category of the business:

It should be Efficient.

Go for a credit card that is both easy to operate and can capably interpret and transmit card data effectively. With this, employees and customers will enjoy the simple check-out process and your business will benefit immensely.

A job is much more enjoyable when employees understand it and the processes required in executing it. For customers, ability to complete a purchase with minimal stress improves their overall buying experience and makes them want to visit again. According to a McKinsey May 2016 global management consulting podcast, when a customer is satisfied, the cost of service is reduced and the potential of the seller having an improved customer loyalty is increased.

It Must Ensure Data Privacy

Consumers want to feel safe and secure when making purchases. They need assurance that their card and personal information are safe as they patronize you. Data breaches from a company will impact negatively on customers’ loyalty. According to a survey by Gemalto, a digital security company, 64% of participating customers said that they would never patronize a company whose security lapses affected them. 49% of the surveyed customers favored possible legal actions against companies that caused their data to be stolen. Data privacy breach will cost you money, good future business and perhaps more money on legal fees.

It should accept alternative payments.

There are several other ways to make payments besides cash and credit cards. Options such as debit cards, gift cards, Near-Field Communications (NFC) payments and mobile related payments should be available for your business. When you accept other payment methods, you give your customers more options and of course, attract customers who have these other payment options as their preference when paying for your products and services.

The result of the Pay Tracker survey carried out by Auriemma Consulting group in May 2016 showed that 27% of the participants said they have used Apple, Samsung, Android pay at some point to make purchases. 39% more of these participants are willing to use mobile payments if it becomes acceptable by more stores and apps. This should help companies realize how much more they can make if only they can diversify a little more.

It should read EMV chips.

Data privacy is very essential. When a credit card reader is able to read chip credit cards, customers feel secure. EMV technology is there to protect customers’ sensitive card information, thus avoiding data breaches. Quite a growing population of customers currently own EMV cards. 70% of US credit card owners have cards with EMV chips, according to the NASDAQ stock Exchange. Unfortunately, as of 2016, a lot of merchants haven’t adopted the EMV technology and this has been frustrating to customers. Many people use these cards, therefore businesses should upgrade to a package that includes the EMV, for the benefit of customers.