A merchant terminal that reads and writes a credit or debit card that contains a microcontroller chip. To make a payment, the card is inserted into the reader and removed when the transaction is completed. See smart card.
Contact and Contactless
This Verifone reader accepts chip-based credit and debit cards (arrow) as well as contactless payments via NFC. (Image courtesy of Verifone Systems Inc., www.verifone.com)
Insert and Wait
Unlike the magnetic stripe which is quickly swiped through the reader, the chip card is inserted and only removed when the transaction is completed.
A Wireless Terminal
Also accepting payments via chip cards or NFC, the Square reader is a portable unit that transmits via Wi-Fi to a tablet or smartphone. (Image courtesy of SQUARE INC., www.squareup.com)