Are Magstripe Readers Separate Devices that Talk to POS Terminals?

Point of Sale (POS) systems are a vital aspect of any business that deals with transactions. They help businesses monitor sales, manage inventory, and importantly, process payments from customers. However, to complete the payment process through a POS, devices such as card readers often come into play. Magstripe readers are one of such devices, and in this blog post, we will be discussing if magstripe readers are separate devices that talk to POS terminals.

What are Magstripe Readers?

Magstripe readers are devices that read magnetic stripes or magstripes found on payment cards. The magstripe contains necessary information such as the customer's account number, name, and card expiration date. The reader scans the information on the magstripe to complete a transaction. Magstripe readers are commonly used in eCommerce platforms, credit card transactions, and hotel room access cards.

How do Magstripe Readers Relate to POS Terminals?

Since magstripe readers are essential in completing a payment transaction, they are often used in conjunction with POS systems. Therefore, magstripe readers are devices that talk to POS terminals to enhance the overall POS experience. In comparison to a standalone magstripe reader, the reader attached to a POS system's terminal can perform additional functions such as connecting to a receipt printer and automatically filling in the transaction total for the customer's convenience.

Magstripe Readers As Standalone Devices

While businesses can use magstripe readers as standalone devices, they do not provide the same level of functionality as the magstripe readers connected to POS terminals. A standalone magstripe reader will only be able to perform limited functions such as reading the data on magnetic stripes. However, when a magstripe reader is connected to a POS terminal, businesses can access features like detailed sales reports, inventory management, and additional payment options such as contactless payments.

Similar Devices

Other devices similar to magstripe readers include chip readers, NFC readers, and barcode scanners. They all function similarly to magstripe readers, but the technology used varies. Chip readers, for example, read data stored on a chip embedded in payment cards. NFC readers use near-field communication technology to communicate with mobile payments devices like Apple Pay, Samsung Pay, and Google Pay. Barcode scanners, on the other hand, can read the barcode on a product to collect essential information like price and SKU.

Choosing the Right Device

When choosing between standalone magstripe readers and magstripe readers connected to POS terminals, businesses must evaluate their needs. If a business only needs to accept occasional payments, a standalone magstripe reader may work for them. However, if a business needs to keep track of sales, inventory, and payments more efficiently, a magstripe reader connected to a POS system would be the better option.

Conclusion

In conclusion, magstripe readers are separate devices that talk to POS terminals. They are essential components of the payment process and enable businesses to enhance their POS experience. While standalone magstripe readers may work for some businesses, a magstripe reader connected to a POS terminal offers additional features like sales reports, inventory management, and various payment options. Business owners must evaluate their business needs and choose the right device that fits their requirements.