Card reader read card error chip

[dainraydevon]

I tried to used my magnet strip reader on a card with a chip. It read, "Sorry card reader error, chip card". Do I have to order a card reader that is only used for chip readers.

[ryanwanner · Accepted solution]

Hello @dainraydevon !

Square should be able to recognize that the contactless reader isn't connected and allow you to swipe a card. If there is a contactless reader connected (or if the software thinks there is), then you can not swipe a card until the chip fails three times.

First thing I'd recommend is to make sure your software and device's operating system are up to date. Also try signing out of the app and signing back in to sync data. That should clear this error unless your reader is really erroring out. If it is, you can always reorder one from your dashboard.

I do highly encourage you to consider getting one of the contactless readers. A few years ago there was a liability shift for processing cards. If you swipe a card instead of using a chip or contactless reader and the customer files a chargeback, you automatically have to repay the funds. Swiped cards are seriously insecure anymore. With a contactless reader, you at least have the chance of winning the dispute.