In the process of opening a merchant account, you will need to consider whether to obtain a manual imprinter.  The following hypothetical question and answer session between a merchant and a credit card processor may prove instructive in determining whether to obtain one.

Merchant: What is a manual imprinter?

Credit Card Processor: A manual imprinter, A.K.A., “knuckle buster,” is a device that enables you to make a physical imprint of your customer’s credit card.  The imprint will reveal the customer’s name, card number, and other information on a sales slip.

Merchant: Will my business’s name appear on the sales slip?

Credit Card Processor: We offer an encryption plate that allows up to 4 lines of information.  Your business’s name, address, and phone number can be listed, and even your Visa/MasterCard merchant identification number may be indicated.

Merchant: How much does the unit cost?

Credit Card Processor: The device may be typically purchased anywhere from $20 to $50 – a one time expense.

Merchant: I’m a retail merchant and plan to use a physical credit card terminal.  Why would I need a knuckle buster? 

Credit Card Processor: Consider the scenario where the customer’s card cannot be swiped because the magnetic strip in the back is worn or demagnetized.  You’re going to need proof that the customer authorized the transaction should he/she attempt to dispute the charge at a later time.  Think of this device as a backup insurance policy against chargebacks.

Merchant: Do I have to use the knuckle buster if a customer’s card successfully swipes into the terminal?

Credit Card Processor: No, it’s not necessary.  A signed receipt by the customer should help to win any possible dispute pertaining to a given transaction’s authenticity.  Some merchants, however, still take an imprint of the customer’s card if the transaction amount is very large to have 2 pieces of documentation to defend against chargebacks.

Merchant: Should the customer also sign the sales slip?

Credit Card Processor: Yes, absolutely.  Taking an imprint of a customer’s card is only one step of a multi step process.  You should fill out the sales slip fields (e..g, the amount of the transaction and date) and get the customer to provide his/her John Hancock.

Merchant: My wife has an e-commerce business?  Does she need to obtain a manual imprinter?

Credit Card Processor: As she will not have face to face interaction with her customers, there is no reason for her to purchase the device.  In contrast, any business owner who sees customers at the point of sale should obtain a unit.  For example, we have merchants who participate in trade shows, and later input the customers’ credit card information into a virtual or physical terminal.  It is imperative for them to get this device as they must have some documentation that the customers authorized the sales.

Merchant: Can the knuckle buster replace a physical credit card terminal to process transactions?  It seems much cheaper than buying a terminal.

Credit Card Processor: No, unlike a physical credit card terminal, the manual imprinter cannot facilitate the transfer of funds into your account.  It just aids the merchant in keeping a paper trail about the transactions that have taken place, and serves to provide proper documentation to help merchants win chargebacks.

Merchant: Obviously, I need to keep sales slips in case of future chargebacks?  How long should I save the slips?

Credit Card Processor: The merchant typically has six months to dispute a charge a charge after a transaction has transpired.  It then seems imperative that you hold these slips for at least six months, and preferably up to a year.

Merchant: Thanks for providing this feedback on knuckle busters.  I’m going to order one as soon as possible.

Credit Card Processor: I’m happy to help.  I’m glad that I made an impression on you regarding the importance of the manual imprinter.