Credit card terminals are used in stores to process transactions made using a card. Most modern terminals can process credit, debit, food stamp, and gift cards. A wireless terminal shares this functionality, but is portable for merchants who have set up shop in temporary places, like a convention hall or a flea market.
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A wireless credit card reader works by using cell phone technology to transfer data over the air to credit card processors. You can learn more about how these devices work at the eHow website.