Selecting a well-working credit card reader – and there's a great variation in quality and capability among many different credit card readers – is important for anybody intending to accept credit or debit cards at the point of sale (often abbreviated “POS”). There are also a number of different types of readers, so understanding a little about a few of the types can also come in handy.

For example, one kind of credit card reader is able to be attached to a computer keyboard via what's called a “wedge,” while another type can be connected to the keyboard by means of a serial port (this one is known as an rs-232) and still another easily interfaces with the computer through a simple USB 2.0 connection. Some are able to ready pretty much any kind of card that has a magnetic stripe, in fact.

Generally speaking, a smart businessperson should look at having the most versatile type of credit card reader one can and in keeping with needs of the business. Usually, these readers are set up to read magnetic tracks one and two on a magnetic stripe, or can be configured to read track two, only. The decision is more a matter of just how much information a business is comfortable with reading off the card, for the most part.

There are even credit card reader types that can read all three tracks on a magnetic stripe, though a special driver (called a “HID”) will be needed to do so. Some readers are also dual-head, meaning the person running the card through the reader won't need to run the card through in one specific direction. These dual-head readers are a bit more in cost than single-head readers, but not all that much more.

Probably, the easiest reader to use are the ones that make use of today's modern USB 2.0 interface capabilities, mainly because all that's required is to just plug the USB cable into the port. The software necessary to use the reader is contained within the reader, making it almost completely “plug and play,” in a certain sense.

There are also certain types of readers of credit cards that can also act as an encoder, meaning that a blank card (for example, a security door swipe card) can be ran through the reader/encoder, which will deposit the data necessary on the magnetic stripe to enable the door to be opened through use of the card. One most often sees these kinds of reader/encoders at hotels and motels, where the desk clerk will credit a door card through such a machine.

In the end, deciding on which kind of credit card reader is most appropriate should be undertaken after looking at the kinds of transactions the business intends to conduct and the security level – when it comes to gathering data from the card – needed. Nowadays, these readers are extremely easy to hook up to a computer and can have a business up-and-running and accepting credit cards in no time at all.