Which Card Reader For Small Business Is The Most Beneficial?

card reader for small business

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You’ve done your market research and purchased supplies. Although you may think you’re ready to open your business, one item remains, your payment processing company. When looking for a card reader for small business, choose Lifelong Merchant Services.

Business Options For Accepting Payments 

Today’s consumers only pay with cash for about 20% of all sales transactions. Thus, businesses must accept a variety of payment methods: cash, credit cards, debit cards, or digital wallets. While cash transactions are straightforward, plastic cards and digital wallets are a bit more complex. You must check available funds, credit limits, and other important information. To check this information, you’ll need a terminal or card reader with applicable software that can pull and verify information.

However, cashless transactions may involve one of 3 formats: magstripe, EMV, and contactless. Furthermore, the industry continues to evolve. Thus, your payment processing technology must be able to accept both new and old forms of payment.

1. Magstripe

Since the 1960s, magstripes helped make credit card purchases faster by using computers to complete the transaction. The magstripe holds information about the cardholder including the account number, expiration, and other data. A terminal reads information on the magstripe with a single swipe. However, growing security concerns and fraud-related card skimming have led credit card companies to begin phasing out magstripes.

2. EMV Card Chips

To stem fraudulent credit card purchases, the financial companies, Europay, Mastercard, and Visa (EMV), created the card chip. Chip cards are more secure than magstripes because they don’t transmit the card number during a transaction. Instead, the EMV card creates a unique code for each transaction that fraudsters can’t replicate, fake, or use repeatedly.

3. Contactless Payments

The newest trend is to pay for goods and services using contactless payments. This technology is available with certain credit cards and digital wallets. When it’s time to pay, you tap your card or smartphone near the terminal to transmit your information.

Not all credit cards offer contactless payment. Only those with an illustration that looks like a WiFi signal turned on its side will work. Typically, contactless cards are EMV with the same encryption technology offering secure transactions.

Comparatively, digital wallets allow consumers to store payment information securely and allow access to any connected device.  Apple Pay and Google Pay are examples of popular digital wallets that you can manage through a smartphone. Like a contactless card, consumers wave their device near the terminal to complete a transaction. With enhanced encryption technology, paying with digital wallets is safe and secure.

Incorporating A POS With A Card Reader

The importance of having a card reader for small business is pretty obvious. It offers flexibility and mobility in accepting payments. While it can be a part of a POS system, it can also stand alone. However, incorporating it into a more powerful system can open up time and money-saving possibilities.

A POS system consists of both hardware and software. The hardware includes components like a card reader or a cash register with scanner. Combined with the software, a POS becomes a powerful tool for running your business:

  • Inventory management
  • Track best-selling items
  • Log sales data to detect trends
  • Maintain product information
  • Collect information on coupon usage
  • Gather marketing data on customers
  • Manage information across multiple locations

Furthermore, the POS provider can customize the features and functions specific to your needs. With detailed analytics and reporting tools, you can generate valuable and actionable insights.

FAQs About Finding The Right Card Reader For Small Business

Choosing the right card reader for small business involves sifting through upfront costs, transaction fees, setup, and ease of use. Often, your business’s needs and budget will help narrow down the options. Below, we answer a few commonly asked questions to guide you in your decision.

Which Company Offers The Best Card Reader For My Needs?

Many companies offer card readers with different capabilities. Ultimately, you want one that can accept the various methods of payment while protecting your customers’ data. Additionally, you want a solution that’s easy to use with an efficient payment process while meeting your business needs.

Lifelong Merchant Services are experts in finding payment processing solutions for your company. We’ll help you choose a reader compatible with your company’s environment. Especially, this is true if you are in the vape or smoke shop industry. Our team is experienced with navigating the rules and regulations intrinsic to vape stores and will guide you through the process.

What Fees Are Associated With A Card Reader?

Just like companies offer different features on their card readers, their fees also vary.  For example, transaction fees, the amount it costs to process the payment, change with each company. Also, some companies will give you a free reader to process through their platform while others have a cost.

However, you need to weigh the security and customer service against the fees. The cheapest option isn’t always the best solution.

Can A Card Reader Accept Gift Cards?

Many businesses offer gift cards as a way to attract new customers, build brand awareness, and grow business. Usually, card readers will accept gift cards for payment. This is something Lifelong Merchant Services can help you set up.

Why Should I Choose Lifelong Merchant Services?

One of the most important characteristics in choosing any POS system company is their support. When you encounter a problem, your business can’t wait until Monday morning for a solution. That’s why Lifelong Merchant Services offers 24 hour/7 days a week technical support. 

Additionally, our incomparable payment solutions and innovative POS systems prioritize your business needs to foster growth and success.  Let’s begin a conversation. Call us at (678) 201-0911 to book a demonstration of our powerful systems.

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