--- layout: default_v3 language: default permalink: pos-terminal/credit-card-terminal.html i18n_link: 4262 updated: 2026-01-29 #--- article key-values ---# collection: default_topiccluster t_keyword: credit card terminal tags: business management, plum pos, credit card, credit card terminal type: supporting page_id: 4262 hreflang_id: 4262 parent_id: 4283 date_published: 2021-09-24 date_modified: 2026-01-29 #--- javascript schema ---# javascript_schema: - script: jquery_3_2_0_min - script: bootstrap_min - script: article_infinite_scroll - script: article_mix_infinitescroll - script: article_mix - script: article_mix_faq - script: article_mix_toc #--- section schema ---# section_schema: - section: nav-main_menu - section: article_body_v2 - section: footer - section: schedule_demo_cta #--- page key-values ---# meta_tags: t_meta_title: Ultimate Guide to Credit Card Terminals t_meta_description: A credit card terminal may already be in your restaurant. However, how much do you really know about it? Let our experts fill you in on everything there is to know about credit card terminals. t_meta_abstract: A credit card terminal may already be in your restaurant. However, how much do you really know about it? Let our experts fill you in on everything there is to know about credit card terminals. i_meta_image: og_the-ultimate-credit-card-terminal-guide-definition-pricing-more.png article_body: json-ld_article: v_date_published: 2021-09-24 v_date_modified: 2026-01-29 author: p_author_id: 124 t_author: Lauren Christiansen p_author_url: lauren-christiansen.html i_author: 124.jpg t_author_description: Lauren Is An Experienced Writer Who Enjoys Reading, Travelling, And Spending Time With Her Children. p_author_facebook: p_author_twitter: https://twitter.com/ p_author_linkedin: p_author_instagram: feature_snippet: p_type: text t_title: What is credit card terminal ? t_description: What is a credit card terminal? A credit card terminal is a device that swipes and stores the credit card data from the magnetic stripe on the back of the card. It's typically used to process transactions in restaurants and retail stores. The device has a card reader and a keypad that the cashier uses to enter your card information and your PIN. content: heading: t_title: The Ultimate Credit Card Terminal Guide- Definition, Pricing & More! t_description: A credit card terminal may already be in your restaurant. However, how much do you really know about it? Let our experts fill you in on everything there is to know about credit card terminals. image: i_image: the-ultimate-credit-card-terminal-guide-definition-pricing-more-1632504055-8017.png t_image_description: v_image_attribution: v_image_license: v_video: paragraphs: - t_headline: What is a Credit Card Terminal? t_text: You've probably heard the term credit card terminal before, but do you know what it is? A credit card terminal is a device that is used to swipe credit cards and debit cards. The device is then plugged into a fixed-point device, such as a cash register or a computer, for processing the transaction.

The most common ones are a credit card reader and a debit card reader. A credit card terminal can be used to process credit card or debit card transactions from a restaurant or brick and mortar store. Using the right credit card terminal is critical to maintain a successful business and optimize cash handling practices.

p_headline_type: h2 image: i_image: what-is-a-credit-card-terminal-1632504055-5084.png t_description: //pixabay.com/photos/credit-card-terminal-pay-chip-card-1727353/ v_attribution: //pixabay.com/photos/credit-card-terminal-pay-chip-card-1727353/ v_license: Creative Commons Zero callout_text: - t_headline: What to Know about Payment Processors t_text: Payment processors are the backbone of modern businesses. Some are big players with big names, like PayPal and Stripe. Others are smaller and newer processing companies with more innovative approaches.
Regardless of the type of payment processing provider, these solutions are critical to the way you do business. They provide the gateway to the credit card network, which means all your customers can pay with their credit cards. They maintain and integrate thousands of transactions and handle a plethora of essential data.

A payment processor sends a request to a customer's bank upon a payment. The bank responds within seconds to infer whether the transaction is approved or declined. This provides a quick and simple way for restaurants to perform transactions and ensure customer satisfaction.

If you don't use an effective payment processor, there will be breakdowns and errors. Customers may be forced to pay in cash for certain chunks of the day until it is fixed. This not only frustrates customers but can lead to a lot of profit loss if customers don't have cash on hand. This is why it's so essential to purchase the right type of device that integrates with a POS system. It will help streamline the remaining business processes.

p_headline_type: h3 image: i_image: what-to-know-about-payment-processors-1632504055-1319.png t_description: //pixabay.com/photos/terminal-payment-slot-device-4439375/ v_attribution: //pixabay.com/photos/terminal-payment-slot-device-4439375/ v_license: Creative Commons Zero callout_text: - t_title: Fun Facts on Payment Processing and Processors t_text: call_to_action: p_type: signup t_title: Restaurant credit card terminal tips t_text: PLUM point of sale has decades of reliable restaurant industry experience t_button_text: Start my free trial p_button_url: p_button_color: ff7a59 v_form_id: 138 v_product: plum-pos background: type: image i_image: https://wp.altametrics.com/assets/images/cta/24-Download_Your_Free_E-book!_copy.png p_video: p_color: - t_headline: How Payment Processors Determine Rates t_text: The rates for different types of transactions can vary depending on the type of card, the type of business, and the type of transaction. You'll be charged for any payment processing service based on the size and scope of the restaurant, the card reader system, and whether it is a debit or credit card. Different credit card companies also charge different rates for different types of cards. Plus, there are different rates for different types of transactions.

Most companies use a tiered model to determine rates. Each transaction is grouped into a tier level, and that particular tier level has a set fee rate. Typically, the lower the transaction amount the higher the rate. This is why some quick restaurants and retailers refuse to take credit or debit cards unless the customer pays a fee. There is no point in processing a transaction for very little money when the transaction is at a high-tier payment level. Generally speaking, credit card processing fees are roughly 1.7% to 3.5% per transaction.

p_headline_type: h3 image: i_image: how-payment-processors-determine-rates-1632504055-4254.png t_description: //pixabay.com/photos/analytics-charts-business-woman-3265840/ v_attribution: //pixabay.com/photos/analytics-charts-business-woman-3265840/ v_license: Creative Commons Zero callout_text: - t_headline: What is Involved in a Credit Card Transaction? t_text: A transaction is simply an exchange of goods or services for payment. A credit card transaction is an exchange of goods or services for credit. A credit card transaction is initiated with the swipe or insertion of the card into the card slot of the terminal. The cardholder then enters a PIN code or signs a receipt to complete the transaction. The processor immediately sends the data to the customer's bank, which then uses AI to approve or disapprove the transaction.

Remember that the terminal always prompts the cardholder for the total cost of the transaction, the amount of cash back, or the amount of the tip. This entire process transpires within a few seconds, especially if you use a high-quality terminal.

p_headline_type: h3 image: i_image: t_description: v_attribution: v_license: video: v_video: lz48kkmVP1k v_video_language: default t_name: How to Choose a Credit Card Processor For Your Fine Dining Restaurant t_description: Visit //transactionexpert.com for more great tips to grow your business. How can you select the right credit card processing company to handle your transaction services safely and efficiently? Watch this video as James shares specifically what a fine dining restaurant needs to look for in a processor that will meet their needs. v_url: //youtu.be/lz48kkmVP1k i_thumbnail: //i.ytimg.com/vi/lz48kkmVP1k/default.jpg i_thumbnail_1x1: //i.ytimg.com/vi/lz48kkmVP1k/default.jpg i_thumbnail_4x3: //i.ytimg.com/vi/lz48kkmVP1k/mqdefault.jpg i_thumbnail_16x9: //i.ytimg.com/vi/lz48kkmVP1k/sddefault.jpg v_upload_date: 1-7-2015 v_length_minutes: 8 v_length_seconds: 8 v_view_count: 159 callout_text: - t_headline: Important Variables to Watch For t_text: There are several variables to look out for when determining which credit card terminal to purchase. Always research and compare processing fees and hardware fees. Companies may either offer tiered pricing, blended pricing, interchange-plus pricing, or membership-based pricing. Blended pricing is where all transactions have the same rates. Interchange-plus pricing is where rates are broken into separate components, such as Master card rates vs. Visa rates.

A membership-based pricing model enables the owner to pay a monthly fee depending on the interchange rate. Cards that are swiped or chipped typically incur lower fees because there is less potential for fraud. If the card is punched into the system, the fee may be higher.
There are also traditional terminals, mobile/wireless terminals, integrated POS terminals, or virtual terminals. Virtual terminals have no hardware costs, while integrated POS systems will have higher fees. However, an integrated POS system will be much more effective in the long run, as it integrates with other data and facilitates in-depth data analysis.

p_headline_type: h3 image: i_image: important-variables-to-watch-for-1632504055-7296.png t_description: //pixabay.com/photos/money-cards-business-credit-card-256319/ v_attribution: //pixabay.com/photos/money-cards-business-credit-card-256319/ v_license: Creative Commons Zero callout_text: call_to_action: p_type: signup t_title: Want to learn more about credit card terminals? t_text: Let our experts be your guide to innovation in restaurant industry tech t_button_text: Start my free trial p_button_url: p_button_color: ff7a59 v_form_id: 138 v_product: plum-pos background: type: image i_image: https://wp.altametrics.com/assets/images/cta/24-Download_Your_Free_E-book!_copy.png p_video: p_color: - t_headline: What are Pricing Models? t_text: Credit card processing terminals come with 3 types of pricing models. The restaurant business will need to find a provider whose model aligns with the type of customer transactions. This will help to save money and avoid unnecessary fees. The primary pricing models within a pos terminal should include-
p_headline_type: h3 image: i_image: what-are-pricing-models-1632504055-3051.png t_description: //pixabay.com/photos/payment-terminal-card-business-2846140/ v_attribution: //pixabay.com/photos/payment-terminal-card-business-2846140/ v_license: Creative Commons Zero callout_text: - t_title: Other Consideratons When Choosing a Processor t_text: - t_headline: Best Practice Tips for Choosing a Processor t_text: Processor choice is a personal one. There are a lot of factors to consider, and the processor that is the best for one person may not be the best for another. Here are some best practice tips to help you choose the best processor for your needs.
p_headline_type: h3 image: i_image: best-practice-tips-for-choosing-a-processor-1632504056-4129.png t_description: //pixabay.com/photos/credit-card-master-card-visa-card-851506/ v_attribution: //pixabay.com/photos/credit-card-master-card-visa-card-851506/ v_license: Creative Commons Zero callout_text: call_to_action: p_type: signup t_title: The best in credit card terminal technology t_text: Intelligent, cloud-based reporting meets enterprise-class reliability t_button_text: Start my free trial p_button_url: https://altametrics.com/schedule-demo.html?utm_source=plumpos.com%2Fpos-terminal%2Fcredit-card-terminal.html&utm_medium=cta&utm_campaign=The+best+in+credit+card+terminal+technology&utm_term=credit+card+terminal&utm_article=18043 p_button_color: ff7a59 v_form_id: 138 v_product: plum-pos background: type: image i_image: https://wp.altametrics.com/assets/images/cta/24-Download_Your_Free_E-book!_copy.png p_video: p_color: event_body: json-ld_event: t_name: Employee Scheduling for Restaurant Managers t_description: Attendees will learn how create excellent schedules. The class teaches managers how to estimate the number of employees they need to staff their locations; how to accurately forecast their customer demand; how to quickly and accuaratly write and communicate schedules to employees; and how to evaluate the accuracy and optimization of their schedules to make adjustments. v_start_date: 2022-08-08 i_image: p_location_name: Altametrics Online Webinar Course p_address: webinar.altametrics.com?site=altametrics v_price: 10.00 t_offer_description: Priority Registration v_registration_url: webinar.altametrics.com?site=altametrics faq: t_faq_title: Frequently Asked Questions faq_ask: - t_question: What are credit card terminals called? t_answer: In the business world, a credit card terminal can refer to a physical device, a software application on a mobile device, or a Web-based credit card acceptance system. What do credit card terminals do? A credit card terminal is a device that a salesperson can use to swipe a customer's credit card and process a credit card transaction. In addition, some terminals can also be used to accept debit cards. What are the parts of a credit card terminal? A credit card terminal is composed of a card reader, a display, an input keypad, and a printer. - t_question: Can I buy my own credit card terminal? t_answer: If you own a business, you have two options for accepting credit card payments- a credit card machine, or a merchant account. A credit card machine is a device that you plug into your phone jack, then attach a credit card reader to the machine. You can then enter in a sales amount and swipe a credit card, and the machine will process your payment. A merchant account is when a business pays a company a percentage of sales to process credit card transactions for them. These two options have their pros and cons. - t_question: How does a credit card terminal work? t_answer: A credit card terminal is an electronic device, usually a small computer or a point-of-sale (POS) system, that enables a merchant to accept credit card and debit card transactions and provide a receipt to the customer. A credit card terminal works by connecting to a payment network, such as VISA, MasterCard, or American Express. ---