Portable Credit Card Reader Key Terms

Familiarize yourself with basic vocabulary about portable credit card readers

Portable credit card readers allow small merchants, home-based businesses and traveling salespeople to conduct safe and secure transactions in the blink of an eye. While in years past a portable credit card reader may have been nothing more than an imprinter, with the transaction actually being processed later, modern magnetic stripe readers allow near-instant processing and confirmation of transactions, helping to cut down on identity theft and refused charges. Use the following list of key terms to help educate yourself about portable credit card readers.

 

Demagnetization

One of the most common reasons a credit card reader will fail to read a credit card is if the magnetic stripe or magstripe on the back of the credit card has become demagnetized. Because the magstripe is in fact a series of tiny magnets, it is vulnerable to the influence of other magnets and magnetic fields, including that from some cell phones and other electronic devices.
Try: WiseGEEK gives a detailed explanation of why demagnetization may cause your portable credit card reader to fail.

Magstripe reader

A credit card reader is in fact a magstripe reader. The only thing that keeps it from decoding information from other non-credit magnetized cards is the software or services provided.
Try: TechTarget gives the history of magstripe readers and explains how modern credit card readers work.

Tracks

A credit or debit card's mag stripe is encoded with data in three tracks. The data stored in the first two tracks is standardized, while the data in the third track is not.
Try: Tech-FAQ explains the layout and content of the tracks in a plastic card's mag stripe.

Bit density

Did you know that the magnetic stripe on your credit card is basically a tiny hard drive? The information stored on it is measured and organized just as on a hard drive, and the gauge for how much information can be stored in a credit card's magnetic stripe is called bit, information or areal density.
Try: StorageReview.com explains how information density on a hard drive or magnetic stripe track works.

Wireless

As the name suggests, wireless credit card processing technology allows your portable credit card reader to communicate with the processing company without having to plug into a phone line or cable connection.
Try: The Merchant Equipment Store offers a tutorial on wireless credit card processing, with information on both the positive and negative aspects of this relatively new service.

ESD

Electrostatic Discharge, or ESD, can cause errors or even failure in portable credit card readers. Frequent cleaning is one way of reducing this problem.
Try: SiliconFarEast gives a detailed explanation of how electrostatic discharge happens.

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