In today’s world of fast-paced business transactions, portable credit card readers have become an essential tool for small businesses, entrepreneurs, and freelancers. With the increasing popularity of contactless payment options, customers prefer to pay using their debit or credit cards. As a result, businesses need to have a portable credit card reader to stay competitive. In this ultimate guide, we will discuss everything you need to know about these credit card readers, their types, and how they differ from imprinters. .
Contents
What is a Portable Credit Card Reader?
A portable credit card reader is a small handheld device that connects to your smartphone or tablet and allows you to accept payments from your customers using their credit or debit card. The device reads the information stored on the magnetic strip or the chip on the card, and the payment is processed through a payment gateway, allowing the funds to be transferred to your account.
Types of Portable Credit Card Readers
There are several portable credit card readers available in the market, each with its unique features and advantages.
Magnetic Stripe Readers
Magnetic stripe readers are the most basic type of portable credit card machine, and they are capable of reading the magnetic stripe on the back of the card. These devices are affordable and easy to use, but they are becoming less common as chip-based cards become more popular.
Chip-and-PIN Readers
Chip-and-PIN readers are more advanced than magnetic stripe readers, as they can read the chip on the front of the card and require the customer to enter a PIN to complete the transaction. These readers are more secure than magnetic stripe readers, but they are generally more expensive.
Contactless Readers
Contactless readers use near-field communication (NFC) technology to allow customers to pay using their mobile devices or contactless credit cards. These readers are becoming increasingly popular due to their convenience and speed, but they require customers to have compatible devices.
All-in-One Readers
All-in-one readers are capable of reading both magnetic stripe and chip-based cards, as well as accepting contactless payments. These devices are versatile and convenient, but they can be more expensive than other types of portable credit card readers.
Portable Credit Card Reader Vs. Credit Card Imprinter
Portable Credit Card Reader | Credit Card Imprinter |
| An electronic device that reads the credit card information | A manual device that creates an impression of credit card information on a sales slip |
| Reads the information stored on a credit card’s magnetic stripe or chip | Requires the credit card to be physically imprinted onto carbon copy paper |
| Connects to a smartphone or tablet through a cable or Bluetooth connection | Does not require a distinct device to function |
| Permits merchants to receive credit card payments on-the-go | manual credit card machine used in fixed locations, such as brick-and-mortar stores |
| Communicates with the payment processor to finalize the transaction | Requires merchants to manually fill out the sales slip with transaction details |
| Payment is transferred directly into the merchant’s account | Sales slips must be processed and deposited by the merchant |
| Secure and reliable, with built-in encryption and fraud detection capabilities | More susceptible to fraud due to the lack of electronic verification |
| Widely used in mobile businesses and trade shows, as well as traditional brick-and-mortar stores | Less common in modern businesses, replaced by electronic payment methods |
The Bottom Line
While portable credit card readers and credit card imprinters are both used to process credit card payments, they function in different ways and have different advantages and disadvantages. Portable credit card readers are electronic and offer greater security and mobility, while the latter are manual and require more effort to process transactions. The choice between the two largely depends on the needs of the individual business, and the prevalence of electronic payment methods in the market.