A credit card terminal is a tool used by a merchant to input a consumer's credit card information and receive authorization. If a merchant accepts a credit card that has been stolen or processes a transaction when the consumer has insufficient funds or an invalid account, they are at a lose. Therefor, credit card terminals act as a source of protection to the merchants who use them, by accepting credit cards in a way that better ensures payment.
Merchants in physical stores almost always use a credit card terminal that appears as a small machine with a keypad and a sliding slot. The card is swiped through the slot, which reads credit cards numbers from a magnetic strip. They accept debit cards in this same manner, allowing the consumer to enter their pin number for verification. However, as ecommerce grows rapidly in our world, new types of credit card terminals have developed.
In web-based credit card machines, no card swiping takes place. Instead, card numbers are entered at the point of check out and authorization is almost instantaneous. Credit card numbers and other sensitive data is encrypted as it travels through a payment gateway for authorization purposes. Additionally, many web-based credit card terminals require vin numbers, the 3-4 digit security code on the back of the card, or address verification. These measures are used to fight against the growing crime of identity theft.
Virtual terminals are another type of credit card processing machine used in ecommerce. They allow you to manually process a credit card over the internet. Phone, mail, or fax orders that are received by online merchants can be processed this way. They are beneficial for completing transactions in which the consumer requires assistance.
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