Blog > Swiping vs. Keyed-In Credit Card Transactions: Pros, Cons, & Strategies to Reduce Your Processing Costs
Swiping vs. Keyed-In Credit Card Transactions: Pros, Cons, & Strategies to Reduce Your Processing Costs
Nowadays, there are many ways businesses can accept credit card transactions from their customers to make this process easy and adaptable to their needs.
These credit card transactions can typically be categorized into two methods — swiping the card or keying in the card. While both options are frequently used by various businesses and industries, there are key differences, advantages, and disadvantages between each.
This article will help you clearly outline the differences between swiping vs. keyed-in credit card transactions and allow you to weigh the benefits and drawbacks of each to see which will best fit your business model.
The Short Version: Key Differences Between the Two
Swipe Transactions
- Card is present at time of the transaction
- Card is either inserted, swiped, or “tapped” using a credit card reader or terminal
- Faster, easier, and provides higher security for customer payment info
Keyed-In Transactions
- Card is typically not present at time of the transaction
- Merchant manually enters card info into a credit card reader or terminal
- Slower and typically poses a higher risk of fraud and human error with customer payment info
To quickly summarize, swipe transactions involve physically presenting the card, while keyed-in transactions don’t. Swipe transactions are faster, easier, and more secure. Keyed-in transactions are slower and have a higher risk of errors and fraud.