Retailers and merchants who need to process credit card transactions can coordinate the transaction efficiently using credit card machines and terminals. These machines are designed to support a number of different payment methods, and can be linked to a store or company's inventory and sales database system to keep track of sales.
Significance
1. Merchants that want to increase payment options for customers--online or offline--can accept various credit cards in addition to cash and check payments. In order to process the credit card electronically, the merchant will need to use a credit card machine to complete the transaction. Credit card machines vary in size and have different features depending on the needs of the business. The machines offer several benefits for both cardholders and retailers, and have become a standard peripheral device for most point of sale terminals and cash registers.
Function
2. Credit card machines are designed to capture the cardholder's credit card number, expiration date and other vital information to process the transaction. The machine communicates with the credit card company over an Internet or phone connection to post the amount of the sale directly to the cardholder's account. Retailers and business owners typically pay a fee to conduct credit card transactions using these terminals, and may rent or purchase the terminal for business operations.
Types
3. Some credit card machines are designed with encryption technology to protect the sensitive information that is transmitted from the cardholder to the retailer. Credit card machines equipped with a PIN pad are used for debit transactions. Retailers that accept checks may also have a TeleCheck Electronic Check Acceptance device added to the machine; this terminal includes an inkjet printer and check imager so that customers can submit a check directly into the credit card machine in lieu of using a debit card.
Features
4. Standard credit card machines and processing terminals are equipped with an easy-to-read LCD display, a keypad with large buttons, a receipt printer and a card swiping slot. The machines are typically lightweight and compact, and can be set atop a cash register or on a shopping counter for easy access. Some credit card machines may be installed directly onto a point of sale (POS) terminal.
Benefits
5. Security and convenience are some of the key benefits of credit card machines. Merchants can accept payment in the form of a credit card and process the transaction within seconds electronically, which reduces the need for creating carbon copies of credit card sales and limits the amount of sensitive information that may be stolen or misused by employees or customers. The variety of credit card machine styles with different types of functionality allow businesses of all sizes to make the most of the innovative technology; the processing system can be integrated with a company's inventory and sales programs to keep track of critical sales data with accuracy.
