A credit card terminal authenticates credit cards for payment. It protects retailers from invalid payments and comes in various forms, including keypad and wireless models. Data is sent to a verification center for approval, and some models allow for automatic data transmission. Web-based services also exist.
A credit card terminal is a device that businesspeople specializing in retail sales find very useful. This little machine comes in a few different forms, but they all have the same purpose: authenticating credit cards handed over by customers to pay for goods and/or services.
The main purpose of a credit card terminal is the protection of the retailer that employs it. If a retailer accepts a credit card that has expired or been stolen or is invalid as payment, that payment will never be made and the retailer will essentially deliver those goods or services. This is an eventuality that all retailers want to avoid; many find it necessary to employ at least one credit card terminal.
These days, the most commonly seen credit card terminal is one that has a keypad and a sliding slot. The retailer slides the credit card through the slot, recording the configured data onto the magnetic strip on the back of the credit card. In many cases, the retailer must also use the keypad to enter the last four digits of the credit card number as a secondary form of security.
Data is sent from the credit card terminal to a verification center, which sends a positive or negative message to the retailer. If everything is OK, the retailer can accept the credit card as payment for goods or services rendered. If the card is declined, however, the retailer has the right to refuse the sale.
The typical credit card terminal is connected to a telephone line. The credit card terminal acts as a kind of modem, transmitting data to the verification center. However, not all credit card terminals are like this. Some are wireless, relying on Wi-Fi or cellular communications for data verification.
Some credit card terminal models do not require any interaction from the retailer. These automatic models transmit data by repeating the message back from the verification center, usually in the form of a light emitting diode (LED). This type of credit card terminal is common in stores that allow customers to carry out their own payment procedures.
Another type of credit card terminal does not allow for instant verification. This model simply stores the data received from the credit card swipe, prints a receipt if the customer requires it, and can transmit all data for all credit card transactions in one batch to the verification center. This type of credit card terminal is routinely found at outdoor or mobile events where phone line availability is low or non-existent and the retailer does not have access to a wireless credit card terminal.
Finally, a new type of credit card terminal is a web-based service. Credit card verification can be performed online. If you shop online, you are accessing a web-based credit card terminal. No passing takes place except the virtual type. Verification is almost instantaneous.
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