Cards are the primary payment method for many people, with 26.71 billion payment cards in circulation globally at the end of 2023. When someone pays with a debit card in person, it requires a piece of hardware such as a PIN pad terminal. The terminal reads the card, accepts the personal identification number (PIN), encrypts the data, and pushes the transaction through, often in just a few seconds.

Choosing, setting up, and maintaining the right PIN pad terminal are important considerations for businesses that accept debit card payments.

Below, we’ll explain how to choose a PIN pad terminal, from hardware options and security requirements to integration.

What’s in this article?

• What is a PIN pad terminal and how does it work?
  
• What types of PIN pad terminals are available?
  
• What hardware features should you look for in a PIN pad terminal?
  
• How do PIN pads integrate with payment software and POS systems?
  

What is a PIN pad terminal and how does it work?

A PIN pad terminal is the device customers use to enter their PINs when they pay by debit card. It looks simple (it’s usually just a keypad and a small screen), but it does a lot more behind the scenes.

The PIN pad has two jobs:

• It captures and encrypts the PIN the moment it’s entered so the actual PIN never leaves the terminal in plain text.

• It sends the encrypted PIN to the payment processor.

A PIN pad is typically integrated into a card reader equipped with a chip reader, magnetic stripe swiper, and near-field communication (NFC) capabilities for contactless payments. When a customer dips or taps their card, the terminal reads the card data, asks for a PIN if required, and sends everything off to the processor.

When integrated with a point-of-sale (POS) system, the POS software sends the purchase amount to the PIN pad, then the terminal handles the card interaction and PIN entry and returns the result. When the PIN pad terminal operates on its own, the staff keys in the amount directly on the terminal. The customer pays, enters their PIN, and the terminal sends the transaction to the processor.

Certain chip cards can verify the PIN locally by checking the PIN entered in the keypad against the PIN held on the chip. The user experience is the same—the customer enters their PIN—but the card itself verifies the buyer’s identity.

What types of PIN pad terminals are available?

“PIN pad terminal” is a broad term. It can describe anything from a simple card reader and keypad plugged into a POS terminal to a touch screen smart terminal that runs your whole checkout. The differences come down to design, mobility, and how the terminal fits into your workflow.

Here’s a closer look at the main categories.

All-in-one countertop terminals

These terminals are fixed in place and powered by outlets. They connect via Ethernet or Wi-Fi, typically include small display screens, and often have built-in receipt printers.

These are best for businesses with static checkout areas and a need for reliability over portability. They’re commonly seen at standard checkout counters in retail, salons, and small cafés.

Connected countertop terminals

These terminals are linked to a main POS system used by the cashier. They rely on the POS system to initiate and coordinate the transaction. Countertop terminals usually have larger displays for totals, branding, or digital receipts. They’re physically secured—often mounted on swivel stands—with the PIN pad sitting on the customer’s side of the checkout.

These are commonly seen at supermarkets, big-box retail stores, and pharmacies.

Portable terminals

These terminals are powered by batteries and connect via Wi-Fi or Bluetooth. Some models have only a touch screen, while others have physical keypads.

With these terminals, you can bring the payment experience to your customers on the floor, at the curb, or in line. They’re commonly seen at restaurants where customers can pay at the table, food trucks, and pop-up shops.

Smart terminals

These combine a POS system and a payment device. They’re portable devices that can connect via Wi-Fi or Bluetooth. They sometimes include barcode scanning and receipt printing, and they use touch screens for PIN entry and on-reader tipping.

These terminals are ideal for businesses that want sleek hardware and integrated apps (e.g., inventory, loyalty, ordering). They’re commonly seen in modern retail, fast-casual restaurants, and boutique stores.

What hardware features should you look for in a PIN pad terminal?

The hardware you choose for your PIN pad terminal will affect how fast payments process and how durable the device is. Here’s what to look for when you evaluate options.

Payment method support

At a minimum, the terminal should handle:

• Europay, Mastercard, and Visa (EMV) chip cards

• Contactless cards

• Digital wallets (e.g., Apple Pay, Google Pay)

Most modern PIN pad terminals support all three, but you should check. If one’s missing, you might turn away customers because of their payment preferences.

Display and user interface design

• Keypad: If it’s physical, it should be backlit, tactile, and built to withstand heavy use.

• Touch screen: The screen should be large and responsive enough for easy PIN entry, especially for older users or those with different accessibility needs.

• Privacy shield: This is a useful feature in busy environments where shoulder surfing could be an issue.

• Screen clarity: Look for sharp, legible displays. Color screens can be helpful for prompting users, but they’re not necessary if the user interface is well designed.

Connectivity options

The terminal has to reliably connect to your POS system or to the internet. Look for:

• USB (for POS connection)

• Ethernet (stable and fast for countertop use)

• Wi-Fi (for portable setups)

• Bluetooth (if pairing with a tablet or phone)

Many terminals support multiple options. Choose the mix that best fits your business. For example, if you want to take the terminal to the customer, you’ll need a Wi-Fi or Bluetooth connection.

Build quality

Durability matters. These devices get handled all day, every day. Buttons shouldn’t stick, screens shouldn’t crack easily, and ports shouldn’t loosen after a few months.

If it’s going to sit on a counter, check whether it works with swivel stands or security mounts and whether it can be easily handed to customers, if needed. Portable units should be light but solid, and countertop models shouldn’t take up more space than they need to.

Power and battery life

Wired devices usually draw power from a wall outlet or USB port, while wireless devices run on batteries. Look for specs that cover at least a full day of active use, and check whether the battery is replaceable or rechargeable and how long a full recharge takes.

Receipt printer and barcode scanner

Some terminals include a built-in printer, which is useful in stand-alone setups. Others rely on an external printer connected to the POS system. Decide what your workflow needs: if customers want printed receipts and you’re not using a full POS system, a printer in the terminal helps. You might also want the ability to connect a barcode scanner, particularly in a retail setting.

Not all PIN pad terminals offer ports or software support for these so check compatibility if any of them are in your setup.

Security features and certifications

Look for the following:

• PIN Transaction Security (PTS) certification: This verifies that the terminal meets global hardware-level security standards for PIN payments.

• Tamper resistance: Devices should wipe keys and shut down if they’re physically breached.

• Point-to-point encryption (P2PE): The terminal should encrypt card data and PINs instantly.

• End-to-end encryption (E2EE): The terminal should encrypt payment data from when it’s entered to when it gets to the payment processor.

• EMV Level 1 and Level 2 certification: This ensures the terminal handles chip cards securely.

You want a device that meets payment industry standards and works securely without additional setup.

How do PIN pads integrate with payment software and POS systems?

A PIN pad terminal needs to communicate with your POS system and your payment processor. Here’s how integration generally works and how it can vary depending on your setup.

POS-driven integration (off-the-shelf compatibility)

Many businesses use POS systems that already support specific PIN pad terminals. In this model, the POS software controls the transaction flow. It sends the total amount to the PIN pad terminal, the terminal asks for card and PIN entry, and the result is sent back to the POS system once the payment is approved.

This kind of integration is common in multilane retail, grocery stores, or anywhere a cashier operates the main POS system while the customer interacts with a separate PIN pad. It enables:

• Syncing of payments with receipts, inventory, and customer records

• Real-time updates to the POS system as the transaction progresses

• Reduced manual entry or reconciliation

But you’re limited to whatever hardware the POS vendor supports.

SDK- or API-based integration (for custom or embedded systems)

If you’re building your own POS system, you’ll likely be working directly with a payment provider’s software development kit (SDK) or application programming interface (API).

This typically gives you:

• Control over the checkout experience

• Programmatic access to the reader (pairing, connecting, and collecting payment)

• Secure, encrypted communication with the payment network

For example, Stripe Terminal supports an API-based integration and SDKs for iOS, Android, JavaScript, and React Native that let you communicate with the reader using Stripe and your server.

This model is ideal for businesses that want a fully customized flow. It requires more up-front development but gives you long-term flexibility.

Cloud-based integration

In some setups, the PIN pad communicates directly with the processor through a cloud-based platform. Your POS system sends a payment request to the cloud service, the cloud-based platform routes the request to the appropriate PIN pad on your network, and the terminal handles the transaction and sends the result back via the cloud.

This can reduce your compliance scope since the POS system never touches card data. It also enables:

• Decoupled hardware and software environments

• Centralized transaction management

• Easier integration for browser-based or lightweight POS systems

These setups are especially useful in environments with many registers or terminals, or where direct pairing is complex.

Device provisioning and remote management

Especially at scale, you’ll need tools to manage a fleet of devices across locations. These include:

• Provisioning and registration (linking devices to specific locations or merchant accounts)

• Remote diagnostics (checking battery levels, reader status, and connectivity)

• Firmware updates (pushed automatically or on demand)

• Labeling and inventory management (knowing which reader is where)

Stripe Terminal simplifies fleet management by allowing you to group readers, monitor their connectivity status, and modify your settings based on physical location.

This layer of integration is important if you’re working with more than a handful of terminals. It’s especially valuable for multilocation businesses or platforms that manage hardware on behalf of businesses.

Setup and testing

Integrating a PIN pad usually involves:

• Connecting the hardware (via USB, Bluetooth, Ethernet, or Wi-Fi)

• Configuring the POS system to recognize and pair with the device

• Loading merchant-specific credentials or encryption keys

• Running test transactions to validate the connection, reader behavior, and data flow

If your system supports dynamic amount entry, digital receipts, or tip prompts, you’ll test those too. It’s also common to simulate failed transactions to ensure error handling works correctly.