Card Reader

A card reader is a specialized device that interprets data from a magnetic stripe or chip embedded in a credit or debit card. These devices form an integral part of the point-of-sale systems used by merchants to process card payments from customers.

When a card is swiped (for magnetic stripe cards), inserted (for chip cards), or tapped (for contactless cards) on the reader, it reads the card’s encoded information and transmits it securely to the merchant’s bank for processing.

The merchant’s bank then forwards the transaction request to the card issuer for approval, marking the commencement of the transaction process.

Modern card readers are becoming increasingly sophisticated, also accepting mobile payment methods like Apple Pay or Google Pay, thereby facilitating diverse and convenient customer experiences.