The Advantages And Disadvantages Of Using Smart Cards And Smart Card Readers

  • June 30, 2017
  • Blog

credit card reader

If you’re a business, chances are you have a credit card reader. Whether that be magnetic card readers or a smart card reader, you likely have some form of card scanner to conduct transactions. After all, statistics show that seven in every 10 Americans have at least one credit card. You’d be missing out on a lot of business if you didn’t have a card reader.

But what’s the difference between a magnetic card scanner and a smart card scanner? Why should you use one over the other?

A smart card scanner works just as well as any credit card reader but may actually be more secure compared to it’s competition.

However, they’ve taken a little time to catch on, and there are several reasons for this. So, to help you figure out if you should have one of these smart credit card scanners, here’s a list of their advantages and disadvantages.


  • More Secure
    Smart card readers are more secure than their counterparts as they use encryption and authentication technology. This is more secure than previous methods associated with payment cards.
  • Adaptable
    Smart card readers can be plugged into machines using a USB supported system, which can operate seamlessly with sales and inventory software. They also allow an easier time tracking customer purchases if you’re interested in starting a loyalty program. Smart credit card readers can be linked to customer databases to do research on customer purchases and help figure out what items are the most popular in sales.


  • Slow Adoption And Cost
    Not every store or restaurant has the hardware to use these cards, and the readers are more expensive due to the added security. Of course, this should change over time as more and more businesses make the switch.
  • Security Concerns
    Because the smart card is so new, Americans have been slow to trust them. These devices store a vast amount of sensitive information, which some people see as a security risk. However, as previously mentioned, evidence has shown that they are more secure than traditional cards.

Smart credit card readers may be a little more costly, but they make a great investment in the long term as technology changes and progresses.

So if you’re ready to make the change from a credit card reader to a smart card reader, you should contact us. We’ll be glad to answer any questions you may have.