For the past few decades, credit card machines have been a staple of most merchants. They are utilized to securely accept funds from customers, and send the details to the other players in the payment process.
But now that mobile payments are gaining such prominence, you may be wondering if you can leave this equipment behind once and for all.
What are credit card machines?
Card machines are a combination of hardware and software that enable businesses to accept credit and debit card payments. They consist of a terminal or tablet, a card reader, and sometimes one or more peripherals.
The traditional credit card reader was nothing more than a terminal that connected to a telephone line. It read the customer’s card and then sent the details to the various other players in the payments ecosystem.
An answer was then returned stating whether the payment had been accepted or declined. This non-cash method proved to be more secure and facilitated the purchase of higher-ticket items.
As the years went on, however, these simple configurations gave way to what is known as a smart terminal. In addition to taking payments, smart terminals act as a hub for numerous business functions, including inventory and employee management, customer relationship development, integration with third-party software, and report generation.
In short, they have evolved from simple payment processing devices into indispensable virtual partners that streamline every aspect of a company’s operations.
Are credit card machines still necessary?
Credit card machines continue to perform vital functions. These include assisting customers unwilling to make mobile payments, allaying security concerns, and meeting the specialized needs of certain business types.
Because mobile payments are so popular and convenient, you would be forgiven for wondering if you could simply say goodbye to your clunky machine and replace it with a mobile credit card reader. Attached to your phone or tablet, the mobile card reader simply uses an app to communicate with the other entities in the payments process.
But before you make this leap, take a look at some of the things your machine can still accomplish for you.
For starters, not every customer wants to pay with their phone, wearable device, or contactless-enabled card. If you fail to offer an alternative, you will probably lose out on their business altogether.
Additionally, some customers continue to have concerns about the security of mobile payments. In reality, this technology uses tokenization and encryption to mask sensitive payment data and connects with digital wallets that have built-in precautions of their own, making it just as safe as purchasing with a standard card.
However, not every consumer feels comfortable with this method yet.
Finally, there are certain business types that particularly lend themselves to standard credit card transactions. Restaurants, for example, often use credit cards when splitting bills or adding tips. These tasks would not be nearly as easy with contactless mobile payments.
The good news is that today’s expanding payment milieu makes choices possible, including how businesses obtain funds from their customers. Most modern point of sale solutions allow you to accept both mobile and card payments on the same streamlined device.
The bottom line is that, while mobile payment use keeps rising, credit card machines and multi-functional devices continue to fulfill an important need.
Your payment processing provider can set you up with modern, secure options that allow you to furnish maximum choice to your customers, while simultaneously streamlining many of your back-office procedures.
