Understanding Credit Card Machines

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One of the keys to maximizing your chances of closing more sales is to learn about, and utilize, technology. A great place to start is with understanding credit card machines so you can use these tools to benefit your business. Read on to learn all about these useful payment processing systems.

How Do Credit Card Machines Work?

Making it easy for your clients to pay by credit card can be a big boon for your sales prospecting, but it helps to understand the technology first. You’ve probably become accustomed to using them as a consumer, but you may not know how things work on the selling end. To process credit card payments, most businesses use a credit card terminal that is either connected to a point of sale system or one that is independent. A POS system will often communicate directly with the terminal and send the purchase total straight to the device, whereas an independent terminal requires the total to be entered manually into the machine.

Terminals may require credit card insertion, or they may be contactless. In either case, the chip in a client’s card communicates with the credit card terminal, sending data about the purchasing account to the merchant’s bank. The merchant’s bank then sends a request for authorization to the customer’s bank; this is the point at which the card is confirmed to be valid and backed by an account with enough funds to cover the purchase.

Once the transaction is approved by the customer’s bank, a successful payment will be registered and the sale will be complete. Depending on how fast a business’s internet connection is, this whole process can take a matter of just a few seconds.

How Quickly Will You Get Paid?

In addition to speedy processing, quick access to funds may pique your interest in getting a terminal. Rather than needing to remind your clients to send checks, then having to travel to your bank to deposit them, and then waiting several days for them to clear, you’ll be able to secure payment right when a sale is closed. You’ll find that most credit card funds appear in your account in just a day or two.

Of course, there are usually fees associated with operating a credit card terminal, so you should shop around to compare the rates from different companies before committing. Many salespeople find that the benefit of receiving quick and easy deposits is worth the extra cost.

How Can Credit Card Machines Help You Close Sales?

Now that you know how the whole process works, understanding how a credit card terminal can benefit your business is what may make you pull the trigger on getting one. When you are prospecting, one of the objections you may have to overcome is a client’s unwillingness to switch from the company he or she already works with. Many people find it easier to keep things as-is, even if the product, service, and pricing you are offering are all superior.

That’s why demonstrating how simple you can make it for them to move their business may encourage more potential clients to bite. Offering customers such an easy way to make payments can help close the deal. Many clients find it beneficial to handle all their payables through a streamlined means like credit card charges, as it cuts down on a lot of accounting chores. Plus, they often enjoy the perk of racking up points or miles by putting all their purchases on plastic.


Now that you understand how charge terminals work, you may want to pursue the option of accepting cards from your clients. It can make it easier for them to pay you, and you’ll have access to the funds more quickly than you would if your customers had to cut checks. In the competitive world of sales, it’s a smart move to tap into any technology that can give you an edge.

Interested in setting up a credit card machine at your location? Talk to an expert at Payline and get an order placed today!

Written by Guest Writer: Lindsey Patterson

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