The basic motion: insert, swipe, or tap depending on the card reader
How you use a credit card depends on what kind of reader the store or ATM has. Most modern machines accept three methods: inserting the card into a slot (called "chip reading"), swiping it through a magnetic stripe reader, or holding it near a contactless sensor. The cashier or the machine itself will tell you which one to use, or you can try them in order until one works.
If the machine has a slot that looks like it could fit a card standing upright, insert your card with the chip (the small metal square) facing into the machine. If there is a horizontal slot on the side, swipe your card through it with the magnetic stripe (the dark band on the back) facing into the machine. If the machine has a symbol that looks like a radio wave or WiFi icon, hold your card a few inches away from that spot without touching it.
At a checkout counter, the card reader is usually built into a small terminal the cashier hands you or that sits on the counter. At an ATM, the reader is built into the machine itself, typically on the front face.
Key Takeaways
- Insert your card chip-first into a slot, swipe it through a side reader, or tap it near a contactless symbol — the machine will usually show which method it accepts.
- The chip reader is the most common method now and is more secure than swiping because it creates a unique code for each transaction.
- After the card is read, you will be asked to enter your PIN or sign your name to complete the purchase.
- If a machine rejects your card, try a different method or ask the cashier whether the reader is working.
Chip readers: the most common method today
Most credit cards now have a small metal square on the front called a chip. When you insert a card into a chip reader, the machine reads the chip and creates a unique code for that single transaction. This code cannot be reused, which makes chip reading more secure than swiping the magnetic stripe.
To use a chip reader, hold your card so the chip faces toward the machine. Insert the card into the slot until it stops — you do not need to push hard. Leave the card in the slot while the machine processes it. This usually takes a few seconds to a few seconds longer than a swipe. Do not remove the card until the machine tells you to, either by beeping, displaying a message, or the card popping out slightly.
If the machine says "card not read" or "try again," remove the card and reinsert it. Make sure the chip is facing the right direction and that it is fully inserted. If it still does not work, ask the cashier or try a different payment method.
Magnetic stripe swiping: older but still used
The magnetic stripe is the dark band on the back of your card. Swiping reads the information stored on that stripe. This method is older and less secure than chip reading because the same information is sent every time, making it easier for someone to copy your card details.
To swipe, hold your card so the stripe faces into the machine. Insert the card into the horizontal slot on the side of the reader and pull it through in one smooth motion — not too fast, not too slow. The machine will beep or display a message when it has read the card. Some machines require you to swipe in a specific direction (left to right or right to left); if the first swipe does not work, try the other direction.
Swiping is now less common at stores in the United States because chip readers are more secure. You are more likely to encounter magnetic stripe readers at gas pumps, some older ATMs, or outside the United States.
Contactless payment: tap or hold near the reader
Contactless readers use radio waves to read your card from a distance. You do not insert or swipe — you simply hold your card a few inches away from the machine. The machine will beep or show a checkmark when the payment goes through.
Look for a symbol that looks like a radio wave or WiFi icon on the card reader. Hold your card flat and parallel to the machine, about two to four inches away from the symbol. Keep it still until you hear a beep or see a confirmation message. Some machines are faster with contactless than with chip reading.
Not all cards have contactless capability. If your card does not work with contactless, try inserting it into the chip reader instead. Contactless is becoming more common, especially at fast-food restaurants, grocery stores, and pharmacies.
What happens after you insert, swipe, or tap
After the machine reads your card, it will ask you to verify the transaction in one of two ways: by entering your PIN (personal identification number) or by signing your name. The machine will display a prompt telling you which one to do.
If you are asked for a PIN, use the keypad on the machine to enter the four-digit number you chose when you opened the account. Press "Enter" or "OK" when done. If you are asked to sign, use the stylus or your finger to sign on the screen, or sign the paper receipt the machine prints out. The signature does not have to match your card exactly — the machine is just confirming that you authorized the payment.
Once you have entered your PIN or signed, the machine will process the payment and tell you whether it was approved or declined. If approved, remove your card when the machine tells you to and take your receipt.
Why your card might not work and what to do
If the machine says "card declined" or "card not read," the problem could be with your card, the machine, or your account. Try these steps in order: first, remove your card and look at it for damage, dirt, or a bent chip. Wipe the chip or stripe gently with a dry cloth and try again. If that does not work, try a different payment method or ask the cashier to try a different machine.
If multiple machines reject your card, the problem may be with your account. Contact your credit card company to ask whether your card has been flagged for fraud, whether your account is frozen, or whether there is a technical issue. Do not assume the card is broken — many declines are temporary and can be resolved with a phone call.
At an ATM, a rejected card might mean the ATM does not accept your card's network (Visa, Mastercard, American Express, or Discover). ATMs usually display which networks they accept on the front. If your card's network is not listed, use a different ATM or go to a branch of your bank.
Protecting your card while you use it
When you insert, swipe, or tap your card, keep these security habits in mind. Cover the keypad with your hand when you enter your PIN so no one can see the numbers. Do not let the card out of your sight — hand it directly to the cashier or use a reader you can reach yourself. After the transaction, take your card back immediately and put it away.
If you are using a machine in a public place, check the card reader for loose parts, skimming devices, or signs of tampering before you use it. Skimmers are small devices criminals attach to readers to steal card information. If something looks wrong or feels loose, do not use that machine and report it to the store or bank.
Chip readers are more secure than magnetic stripe readers, so use the chip whenever possible. If a machine offers both, choose the chip. Contactless is also secure because it does not transmit your full card number — only a one-time code.
Frequently Asked Questions
Do I have to use the chip if the machine also has a swipe slot?
No, but you should. Chip reading is more secure because it creates a unique code for each transaction. If the machine asks you to insert your card, use the chip slot. Swiping is an older method and is less protected against fraud.
What if I swipe my card the wrong direction?
The machine will not read it and will ask you to try again. Remove the card and swipe it in the opposite direction. If neither direction works, the stripe may be damaged or the reader may not be working. Ask the cashier to try a different terminal.
Can I use contactless if my card does not have the symbol?
No. Only cards with the contactless symbol (radio wave or WiFi icon) can be used with contactless readers. If your card does not have the symbol, insert it into the chip reader or swipe it instead. You can contact your card issuer to request a contactless card if you prefer that method.
Why does the chip reader take longer than swiping?
The chip reader is creating a unique security code for your transaction, which takes a few extra seconds. This extra time is worth it because the code cannot be reused or copied, making it much harder for someone to commit fraud with your card.
What should I do if the machine keeps saying my card is declined?
First, try a different machine or payment method to rule out a problem with that specific reader. If multiple machines decline your card, contact your credit card company. They can tell you whether your account is frozen, whether fraud was detected, or whether there is a technical issue on their end.