Jan 15

Study: My Understanding of Cards

Get to Know How a Credit Card Reader Works

Almost everybody nowadays has a credit card and related to this card is a credit card reader that we might not know its role. Whenever we use our credit cards in buying and paying the products, a credit card reader is the machine that completes the process in the transaction. A credit card reader therefore is very essential to accept your purchases, and this machine can also read employee cards, customer cards and gift certificates.

It is undeniable that the use of credit cards is already integrated in our business world, and the credit card readers become a part of this process by taking part in reading and processing the cards to finish a transaction. The information that a credit card reader gets from a credit card will then be passed on the system and will be verified if the certain credit card has sufficient amount to pay for the purchase.

In order to understand more on how a credit card reader functions, let us briefly describe to you its features first.

Check out the back of your credit card and you will notice a shiny black stripe. When your credit is swiped on the credit card reader machine, that shiny black stripe is being read, and the valuable information that is stored there is important in validating the sale.

The act of swiping your credit card will trigger the reading of information embedded in the shiny black stripe, and then the information is sent by the reader to the central tracking and billing system that process the information to the credit card company.

When the credit card company gets the information and has verified, it will then confirms to the issuing bank that the card is legitimate, and notify if the card has reached its spending limit or purchase is still acceptable.

The simple features of a credit card reader are the magnetic stripe reader, the keypad used to enter information, and a tiny display. A keyboard wedge serial port or USB is where the reader can be attached, and can have a printer that is either built in or separate unit.

The display part of the reader comes in various types, with the bigger display as more favourable since you can view more information. Having a backlit feature in a credit card reader is favourable also especially when the reader is used under low light surroundings.

There are various sizes and keys in a keypad of a credit card reader, with more advantage if the bigger keypads are used. The more keys available, the more preference given to the commonly used utilities to use their own key.

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