A card reader involves using technologies to detect the cardholder information, account number, and the authorization code found in a credit card. These details can be found on the card’s magnetic strip or in the microchip embedded in chip-enabled cards. Credit card scanning is essential in today’s modern payment processing system and is commonly used in point-of-sale terminals and automated teller machines in banks.
Using card readers, businesses can accept debit and credit card purchases from customers faster than traditional payment methods. Here are the benefits of using automated credit card scanning.
1. Simplifies credit card payments
While on many sites and apps, users have to feed in their credit card details to complete transactions, a credit card scanner quickly decodes the card information such as the cardholder’s full name, card expiry date, validation code, and account number, and passes it onto the issuing bank. The issuing bank determines if the customer has sufficient cash or credit to complete a purchase then transmits its response to the POS system for the authorization of the transaction. Thanks to technology, the whole process takes a matter of seconds, simplifying payments.
2. Enhances digital customer onboarding
Trading and online payment platforms require customer credit card data when signing up. Businesses have to verify that the trader owns the credit card and also its validity. Using credit card scanning and optical character recognition (OCR), you can easily read the credit card, verify the holder’s identity by comparing their card details with identity documents, then safely onboard customer details on your site.
3. The international bank account validation
International bank account numbers (IBANs) are used in domestic and international payments. Since the number and digit details are usually long, filling them in manually may result in errors. Using credit card scanning software, businesses can verify the IBAN and identify individual bank accounts. By matching IBAN details and credit card data, companies can provide proof of IBAN account ownership.
4. Facilitates age verification
Businesses can conduct identity checks to ensure the correct customer age for restricted goods and services during the customer onboarding process. Using methods such as card verification value (CVV) and address verification system (AVS), businesses can prove that a cardholder owns the credit card, binding ownership to the buyer. Also Read – 10 Quick Cost-Saving Ideas for Small Businesses
5. Eases record keeping
Business growth and success rely on proper records and bookkeeping. The use of credit card readers records transactions so that they can be easily tracked and retrieved when the need arises. With a merchant account, you can also receive periodic online statements and reports of your transactions, making it easy to manage book and recordkeeping.
6. Improved transaction security
The evolution of technology has seen credit cards evolve from magnetic stripe cards, which were more vulnerable, to card fraud to EMV chips which are more secure. With a credit card chip reader, you can ensure transaction security as the process is encrypted to protect customer data while keeping hackers and other cybercriminals at bay and eliminating fraud.
Automated credit card scanning has many benefits for businesses. Consider investing in credit card scanning software for streamlined business processes.