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
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.