As more and more people use their credit and debit cards when shopping, businesses that have a credit card swiper offer a convenient shopping experience. But if you business does own credit card readers for your customers, you could easily be losing more business everyday.

The pricing and costs of credit card readers typically range from $100 to $500. The variation in costs is a attributed to the main features of the credit card scanner, some of which include:

1. Portable credit card machines for easy use anywhere.

2. Wireless credit card readers for better placement in a retail space.

3. Swipers that can handle multiple forms of payment processing.

Action Steps
The best contacts and resources to help you get it done

Choose credit card reading software to turn your computer into a credit card reader

When it comes to getting a credit card reader for your business, the least expensive option is to turn your computer into credit card reader with credit card reading software. This software sets up any computer to read any card, and still offers the protection from chargebacks that are important to businesses.

I recommend: Advanced Merchant Services provides software for as low as $99 that works with any retail or merchant account. USA ePay offers a complete system, including a card swipe for instant processing from any computer.

Purchase credit card scanners with portability

A portable wireless credit card machine can help many businesses that do not have one particular point of sale in their retail space. This can also help those businesses that need to process payments for customers outside the main retail store. The prices on these models range from the low $100s and up, depending on the speed of wireless modem you choose.

I recommend: 1st National Processing offers many types of portable wireless credit card machines for your business. USA Merchant Solutions is another company that offers many types of portable, wireless readers with features like quiet operation and easy paper loading.

Buy high end credit card machine models for the best performance

If you need to move a lot of people in and out of your retail space fast, choose a credit card reader that can quickly authorize and process your payments. Your choice should also include a reader that can take multiple payment options including debit, credit and loyalty program cards. High end models can easily cost $250 or more, but are worth it for those who need payment processing efficiency.

I recommend: Merchant Warehouse offers a high end model credit card reader that provides multiple payment processing and quick receipt printing. Flagship Merchant Services offers a card reader that can take checks and also offers touch screen capability for easy use.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  If you are buying a credit card swipe machine online, check out product reviews for any models you consider before you make your purchase.

If your business wants to accept credit cards, you'll need a credit card reader — either a machine or software that can handle the purchase. Being able to accept credit cards allows customers more payment options, and helps you tap into a broader pool of customers who may live outside of your geographic region.

Traditional terminals attach to a computer, often via a USB port, and include a magnetic stripe reader, a keypad and display. Wireless terminals are mobile, which might be necessary for certain businesspeople, such as exterminators, locksmiths, trade show exhibitors or traveling salesmen.

When choosing a credit card reader:

1. Decide whether you want to rent a machine or invest in buying. Most fixed terminals are relatively inexpensive, so it might make sense to simply purchase one.
2. Ask your merchant account vendor whether the company also sells or leases credit card readers.
3. Consider whether you need special features, like the ability to accept debit cards and gift cards.

Action Steps
The best contacts and resources to help you get it done

Fixed terminals

These terminals are best if you'll be making sales from a brick-and-mortar location. Consider features like size of display, ease of use and price. You'll also need a printer for sales slips and receipts. Printers can either be attached to the unit or sold separately. Basic terminals cost between $150 and $300, while terminals with printers cost up to $600.

I recommend: For quotes on fixed terminals and printers, try BarCodesInc and NexTag. EBay offers quotes on used credit card readers.

Accept cards on the road

To accept credit cards on the road, you'll need a wireless terminal. These cost more than fixed terminals, but offer the flexibility to accept payment from customers who don't have large amounts of cash on them. Wireless terminals come with built-in printers, and tend to be more expensive — up to $1,000. You can buy one from a merchant account provider.

I recommend: Visit Yahoo Small Business for a list of some merchant account providers. You also can get quotes on new and secondhand wireless terminals at shopping sites like Froogle.

Software for phone and Internet sales

If you just do business online or over the phone, you don't need a terminal. Instead, you can use software that allows you to type in a credit card number and get an authorization. Your merchant account provider can offer software that reads credit cards as part of a package. Or you can purchase software for credit card processing, often as part of a suite of services.

I recommend: Microsoft offers a package that includes credit card processing.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Consider factors like display lighting, size of keypad and how easy the printer is to use.
• •  Buy a terminal with sufficient memory that can hold transactions even if you can't connect when the consumer is present.
• •  Determine whether the vendor will also offer training on how to use the machine.

Credit card readers are an easy-to-use payment solution for your business, and they're also important to your customers. With a credit card reader, you no longer have to turn away customers who prefer to pay with credit cards or debit cards.

You can also get credit card reading software to turn an ordinary computer into your own credit card machine. This is a cheaper option and can also be very convenient in retail situations. To stay up to date on credit card readers news and trends, you have a few options. Some of these options include:

1. Online resources that provide product reviews.

2. Industry trade publications.

3. Blogs and newsletters that explain the latest technology in portable credit card machines.

Action Steps
The best contacts and resources to help you get it done

Choose the right credit card swiper with the help of online guides

There are many guides online you can turn to when choosing the best products, and finding the right credit card swiper for your business is no different. There are many guides that will help you choose the right machine. Some can even narrow your options based on your price range, the amount of business your receive, and which machines are easiest to operate.

I recommend: The Point of Sale System Buying Guide put out by eBay takes you through all the steps of evaluating your retail space so you can find the right machine for your business. BuyerZone provides a guide on how to choose the right credit card terminal.

Find online reviews of credit card scanners

Online reviews can be very helpful when it comes to choosing wireless credit card readers or other types of readers. Online reviews are usually written by those who have purchased the item, so these users can give you the pros and cons of their experience with the product.

I recommend: Wholesale and retail suppliers of credit card machines, such as National Barcode, provide product reviews from both experts in the field (usually found within the product description) and data sheets to get all the specs. Mac World can give you information about credit card readers for POS solutions that work with Mac systems.

Explore forums that provide news and reviews of credit card reading software

Researching hardware and software on your own can be a daunting task. If you want to know about a product first hand or get recommendations from other business owners, forums and interactive blogs are the best places to check. This way you can ask questions that retailers may not be able, or willing, to answer.

I recommend: Lockergnome provides a forum where you can ask questions about credit card reading software and equipment and get answers from those who know about or use the software themselves. USBSwiper's community forum lets you interact with those who use USB card swipers in their business.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  If your current credit card swiper is out of date or you think your business would be better served by a new system, contact someone who has implemented the system you want to switch to. This can give you a first hand perspective of how the system works, and if it is right for your own business.

Credit card readers come in all shapes and sizes. They may be plugged directly into a computer or cash register, or they can be a stand-alone unit. A reader that only assesses credit cards is a rarity. Usually card readers will also read debit cards, and may be called upon to read benefits cards, gift cards, ID cards and almost anything with a magnetic stripe. Use these key vocabulary terms to make the right choice for your business needs.

Action Steps
The best contacts and resources to help you get it done

Credit card reader

The term 'credit card reader' has developed into a bit of a misnomer, because the magnetic stripe readers originally designed to read credit cards now read a much wider variety of magnetic stripe cards than those simply used for credit.

I recommend: wiseGEEK explains how magnetic stripe readers developed and what purpose credit card readers serve today.

Magstripe

A credit card reader functions by decoding information from the magnetic stripe or magstripe on the back of a credit card.

I recommend: AIM Global explains in detail how the magnetic stripes on your credit, debit and other magstripe cards work and how they're created.

Tracks

In the context of credit card readers, tracks refer to the three separate areas for storing information in the magnetic stripe on a credit card. All credit card readers gather information from the second track. Some read information like the cardholder's name from the first track, but use of the third track has not been standardized by banks.

I recommend: HowStuffWorks explains how information is stored in the magstripe tracks on your credit card, and what information is stored where.

ISO/IEC standard 7811

The ISO/IEC standard 7811, followed by banks that issue credit cards and debit cards, dictates the size and capacity of each of the tracks on the magstripe.

I recommend: The International Organization for Standardization offers the full text of the relevant standards as they relate to bank card magstripes.

American Bankers Association

The American Bankers Association (ABA) standardized the use of track 2 on a credit card's magstripe, thus standardizing much of a credit card reader's function.

I recommend: American Bankers Association explains its role in unifying and enhancing the banking industry.

Coercivity

Coercivity refers to the permanence of a magnet. It's harder to accidentally demagnetize a high coercivity magnetic stripe card than a low coercivity card. Most credit card readers can read either high or low coercivity magnetic stripe cards.

I recommend: ID House explains the difference between high coercivity and low coercivity encoding on cards.