August 2nd, 2016 by Elma Jane
Credit card machine or point of sale terminals are used for processing debit and credit card transactions and are often integrated into a Point of Sale System. Let’s take a look at the POS terminal evolution.
Manual Imprinters – although the process was time consuming and did not offer the speed or instant transfer capabilities, manual imprinters have been around since the start of a wide acceptance of credit cards. Manual imprinters are still widely used and are considered a great backup processing method.
Electronic Authorizations – Merchants had the choice of calling in for an authorization or imprinting their transactions. The first electronic credit card authorizations were done over the phone, but many businesses opted voice authorization only on larger transactions because of the long waiting time for authorizing a transaction over the phone,
Point of Sale Terminals: Point of sale terminals emerged in 1979, which was a turning point in the credit card processing industry. Visa introduced a bulky electronic data capturing terminal. This was the first of credit card machine or terminal as we know them today, it has greatly reduced the time required to process a credit card. MasterCharge became MasterCard in the same year and credit cards were replaced to include a magnetic information stripe which now has become EMV/chip and PIN.
The Future: There’s a lot of room for advancement when it comes to Credit card processing technology. Increasing processing speed, reliability and security are driving forces behind processing technology advancement. Today’s credit card terminals are faster and more reliable with convenient new capabilities including contactless and Mobile NFC acceptance. The processing industry will definitely be adapting new technologies in the near future and has a lot to look forward to.
Posted in Best Practices for Merchants, Credit Card Reader Terminal, EMV EuroPay MasterCard Visa, Near Field Communication Tagged with: credit card, credit card machine, debit, electronic credit card, Electronic Data, EMV/chip, merchants, mobile, nfc, PIN, point of sale, POS, processing industry, terminals, transactions, visa