About Credit Card Terminal Systems
Credit card terminal systems provide a measure of convenience for both merchants and customers. From reading credit card information to processing transactions and even keeping financial records, these systems handle many aspects of commercial transactions.
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Card Readers
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When a customer presents a credit card for payment, magnetic read heads on the terminal system interpret thousands of tiny magnets on the card’s magnetic strip. These magnets use binary code to indicate important information such as the card number and expiration date.
Network Interface
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After reading the customer’s card data and accepting sale information input from the merchant, credit card terminals use telephone lines or the Internet to connect with a merchant account provider’s payment gateway. This gateway relays the transaction information to the cardholder’s bank for processing.
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Records
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After a period of processing transactions, credit card terminals can print a record of all transactions, provide tax records and, depending on the specific terminal, handle a number of other accounting tasks.
Benefits
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Credit card terminal systems largely automate the process of accepting credit card payments. The terminals also speed transactions to keep customers moving and allow merchants to accept a wider array of payment types.
Considerations
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Some credit card terminal systems require dedicated telephone lines, and some may require periodic software updates from merchant account providers.
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References
- Photo Credit credit card terminal image by Igor Zhorov from Fotolia.com
