How exactly does a card reader work? It boggles my mind :0
Kiriska: A reader collects card information when you swipe a card or read its chip. It transfers this information to your card reader service (Square, Paypal, etc) through your phone. The service processes the information, charges the customer, and collects the money. Depending on your service, the money is then either held for a period of time (1-2 business days usually for Square) or transferred to your account immediately (Paypal). You never actually have access to the customer’s full card info.
Some basic information on Square’s magstripe and chip readers are on their site. Here’s Paypal’s info. I don’t have an extremely technical explanation of how a reader works though, so if that’s what you’re looking for, you may wanna google around for it. :o
These days, my average con is 20-40% credit card transactions, with higher rates on Sundays. It’s definitely worthwhile to try out card reader since the (regular magstripe) reader is free and there’s just a fee per transaction, so you don’t lose anything if you don’t end up using it. And for Square, if you use someone’s referral link, you don’t even have fees for the first $1000 worth of transactions.