Knowing how credit card readers work will make you a much more informed small business owner. ![]() You process transactions with them every day, but do you really know how credit card readers work? What’s actually happening from swipe (or dip, in the case of chip cards) to the completion of a sale? Below, we explain the credit card processing system and take you through how credit card readers work for magstripe cards, chip cards, and contactless payments.
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