A study conducted by Dun & Bradstreet found that people spend 12% - 18% more when using credit cards instead of cash. (Nerdwallet)

Credit cards have a lengthy history – dating back to the first being a cardboard Diner’s Club card in the 1950’s which operated like a charge card with the balance needing to be paid in full at the end of the month (Swipesum). We’ve come a long way – even entered the swipe, dip, tap era – and it’s interesting to look at how terminals and machines fit into the contactless world.

While contactless payment solutions are king for many businesses since the pandemic, hardware and terminals are still thriving and necessary in many cases. With the pandemic’s sudden thrust into today’s card not present, digital wallet world, some payments professionals predicted that physical card swiping would go by the wayside and with them – swipe hardware would fade out.

The payment systems that support omni-channel payment solutions are seeing merchants’ card present and card not present transaction ratios shift across every industry since 2020. Merchants that previously leaned on swipe terminals for the majority of their payment processing have branched into offering customers other payment solutions. Customers expect more payment option variety than they used to. Some don’t even carry a plastic credit card when they leave the house anymore. The most prosperous merchants are paying attention and diversifying their payment solutions in response to consumer trends.

But, have swipe terminals disappeared? Will they? No. The very nature of some business models will continue to require having the correct hardware and software to meet its customers’ needs who use credit cards. The right mix of payment hardware and software can improve not only the customer’s experience, but it can also serve to streamline operations, and ultimately result in the growth of the business.

Payment hardware is adapting and multiplying in variety along with the digital payment momentum. Most devices now have morphed from swipe terminals into swipe, tap and dip capable hardware. Now, merchants can choose from a seemingly endless buffet of machines, each with different advantages, costs, and functionality.

Some models require professional installation while others can be switched on and connected to Wi-Fi/Bluetooth in minutes. There are countertop, handheld, and mobile variations in all colors. Some models are shipped to merchants pre-integrated with POS systems. Others stand alone and can be connected to many different systems, giving merchants more freedom to select the best suited software to complement their business model and some of the more innovative payment solutions.

Some terminals today even come with features like connected cameras or power over ethernet (POE). Amazon famously rolled out terminals including the option of paying with palm signature. In August, they announced the expansion of the technology at Whole Foods stores in California. (TechCrunch)

Depending on the business model, merchants should look for payment hardware with mobility and aesthetic appeal in mind. It might make sense to install heavy duty machines that take up counter space and deter theft, while others may select a terminal model that can travel without needing to be hardwired to the building to support card-present curbside checkouts, for example.

There are many factors for a business owner to consider when deciding which payment technology will work for them and more importantly, for their customers. When it comes to deciding which terminal payment solution is the right fit, it’s important to keep in mind these factors:

• Does it come with the option to integrate with systems you use or enable features that will help you streamline processes?
• Is it affordable? Many companies will offer “free” terminals but slip in hidden fees elsewhere. Some cover shipping costs and offer device insurance plans. Some will allow you to order many devices at once at volume discounted pricing. Some will buy back devices when you're ready to move on to newer models.
• Payment method variety is crucial. Will your hardware support the payment methods your customers expect? Ensure your solution mix will allow you to accept the latest forms of physical and contactless payment to ensure customers have a diverse set of options.