These terminals are familiar sights in many retail establishments today. Usually resting on a countertop or specially designed stand, the POS terminal allows credit cards and other types of cards, such as debit or ATM cards, to be swiped through a special, magnetic slot, reading encrypted credit card information, such as account number and accountholder name, as the card is swiped through.Unlike the virtual terminal, a system using a gateway provider performs transactions automatically, with no need of human China Wholesale Gear Rack intervention.Swipe terminals are most commonly used at retail establishments – businesses with a physical storefront operation – and because they require a face-to-face transaction, are associated with the lowest incidence of fraud and chargebacks; therefore, they are generally the least expensive type of equipment to obtain. However, because merchant services are evolving each day, be sure to ask your account provider about other options that can help your business grow and thrive. Today, merchants can also purchase swipe terminals that attach to mobile devices, such as cell phones or PDAs, allowing credit card transactions to be processed on the road.Attached to a dedicated phone line, the information from the terminal is transmitted along with information from the cash register to the credit card issuer, which verifies and validates the card and determines if the transaction may be approved or declined.