What is a card reader?
A card reader is a hardware device that accepts credit and debit card payments at the point of sale. It reads payment information from a card’s magnetic stripe, EMV chip, or contactless NFC signal and transmits it to a payment processor to authorize the transaction.
Card readers are also commonly called payment terminals or credit card terminals. In casual use, the terms are interchangeable.
Integrated vs. non-integrated card readers
The most important distinction between card readers in a resale context is whether they are integrated or non-integrated with the store’s POS software.
An integrated card reader communicates directly with the POS system. When a sale is completed in the software, the payment amount is automatically sent to the terminal — no manual entry required. The transaction result flows back into the software automatically, and receipts, reporting, and records stay in sync.
A non-integrated card reader operates independently from the POS software. Staff enter the payment amount manually on the terminal, and the sale must be reconciled separately in the software. This introduces more room for error and requires more manual steps at checkout.