Credit Card readers and other new era payment methods

Do you still make payments via cash? Well, if you do, I have a bad news for you: you might be a bit outdated! There are hundreds of payment processing systems now that can relieve you from carrying cash along with you while you are going to buy something. Carrying cash is an irksome job and quite dangerous too; therefore, let’s discuss some of the newer forms of payment procedures in practice these days around the world.

Credit cards are the primary forms of payments people use around the world apart from cash. The payment processing system involving credit cards dates to the 1950’s when the American express issued its first charge card. Since then, the system has evolved and has got much better and advanced now, and the growth is persistent.

Payment

Methods

Readers

Credit card readers have made it possible for the customers to make payments and the sellers to receive payments by simply swiping the card through the reader or scanning the card on the reader. There are no complexities involved whatsoever neither are there any security threats as banks have evolved secure ends to eliminate any chances of fraudulent conduct.

Another new phenomenon of e-commerce is the online payment using your credit cards. This is done via several payment gateway companies of which Shopify is a very popular one. Shopify allows the businesses to accept payments from its customers online via their websites. This is usually practiced on online stores and Shopify provide its services to many well known online stores all around the world, prominently in India, United States, United Kingdom and Australia. Shopify is not only beneficial for the businesses that are accepting customers’ money online, but it is also very useful for the customers who are the ones paying online. Without it, people would be visiting banks’ branches or local cash transfer agencies to pay the seller but now, all they have to do is input the credit card number and a few details on their phones or computers and make the payment, in a matter of seconds. Even the laptops these days have a credit card scanner on them placed along with the keyboard so that the customers can make payments easily and quickly through their laptops.

Apart from this, another related advancement in technology has come with the mobile credit card readers that have now become widely available and are very useful and time saving. The mobile credit card reader is a device that connects to your smartphone and scans the credit cards and accepts payments through it with the help of mobile point of sale (mPOS) software. These mobile point of sale software are available in almost all smartphones as applications and can easily be obtained from Appstore or Playstore. This mechanism helps the sellers as they can accept payments through credit cards using the Mobile point of sale in case they do not have a credit card terminal available. In fact, businesses can now choose to buy a mobile credit card reader instead of a credit card terminal because the former is much cheaper and more efficient than the latter.

A newest procedure of payment these days is the QR code payment. This even eliminates the need to carry a credit card along with you. While making a purchase, all you need to do is scan a QR code displayed at the shop or a restaurant and make the payment via your bank account through a mobile application. The businesses no longer need to buy the point of sale terminals to process the credit card payments. Although this method of payment is not that widespread common around the world, but it is gaining popularity and has been in use for a couple of years now at several places. Few more years down the lane, and it will surely be at the top amongst other payment methods of similar sort.

The smartphone companies have come into the field too and have launched their own systems of making payments using their manufactured devices. Some of these applications are Apple Pay, Android Pay and Samsung Pay. These applications use credit card(s) saved in their wallets by the users to make payments online or at physical shops. Using these applications, customers do not have to input card details again and again to make purchases; all they need to do is to hold the smartphone over the payment reader or the QR code of the seller and proceed with the payment. A pin code or touch ID can also be used as an added feature of security.

The advantages of such payment systems are numerous. First of all, the threat attached to carrying cash is completely eliminated and you can roam around the city with no fear of theft or misplacing your cash. Furthermore, a wallet full of cash is also very difficult to carry around and it does not even fit well in your pockets. Secondly, a credit card payment system allows you to make purchases even if you do not have the money available with you at that particular time; hence the name ‘credit’ card. Therefore, you no longer need to wait for your pay cheque to arrive if you want to buy something.

These electronic payment systems also relieve the businesses from the stress of holding too much cash physically at their premises. The payments they receive are directly transferred to their bank accounts and are safe there. On the other hand, if they receive hard cash, there is a potential threat of theft.

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