A Chip and Pin Machine Is Crucial To Any Retail Business

17th May 2010

A chip and pin machine is a necessary part of any business that

wishes to succeed. In the retail and service sectors, giving your

customers an easy way to pay for their goods is a fundamental part of a

good business plan. However, there are a lot of things that you need to

keep in mind if you are intending on acquiring these machines for your

business. In order to make the system work, you will need some

infrastructure in place. This infrastructure includes a way for the

machine to communicate with the banks in charge of the cards you are

processing and an account for your funds to be transferred to. Without

these things, your new machine will not be able to function.

A chip and pin machine commonly uses a telephone line to communicate

with banking services to process payments. When you are setting up your

machine, you will need a dedicated phone line for your machines. This

is necessary, as it is important that you avoid interference on the

line as you are processing payments. If the communications are

interrupted, payments may not go through or the connection with the

bank may be lost. In addition to this, by separating your business

lines from your payment processing lines, you ensure that your

customers can call your business whenever necessary. If you share a

line, you cannot process payments if someone has called your business

and your customers cannot call you if you are processing a payment.

The next thing you will need for your chip and pin machine is a

merchant account that allows you to process the payments. This is the

account that is used with your machine and deposits the money received

from the payments. When you are first setting up your machine, you will

need to pick the type of account that allows you to process the type of

payments that you want to receive. It is important to understand that

the merchant account can dramatically influence the number and type of

payments that you receive. Take your time when you select your merchant

account. This will ensure that you do not have to modify your account

later. Fortunately, if you decide to expand your business, it is

possible to modify most merchant accounts to allow for your new

processing types.

Understanding what types of payments that you can process with a chip

and pin machine is very useful. There are several primary types of

machines that you can invest in. First, you can invest in a machine

that is capable of reading data chips from both debit and credit cards.

This is the most flexible type of payment machine that you can use.

These machines come with a swiping mechanism for cards that do not have

chips. However, as many cards now include chips, this is a better way

to process payments securely. In addition to this, there are chip

machines that are meant for only debit cards. As many credit cards do

not use chips, the most common types made are for debit cards. These

machines draw money directly out of checking and savings accounts and

deposit into your merchant account. When you invest in your machines,

make certain you take the time to select the ideal one for your needs.

Sometimes, it is much more efficient to buy a more expensive machine

planning for the expansion of your business.