When our customers begin to look for an affordable wireless payment terminal, the first question they often ask is whether a device is CDMA or GPRS compatible. This is a great question, but more often than not our customers don't understand the difference, they are simply reading a requirement posed by their merchant. Since we at SaleTerminal.com believe strongly in educating our customers, we have written this short article to explain what CDMA and GPRS are and how they differ from one another.
CDMA (Code Division Multiple Access) and GPRS (General Packet Radio Services) are both wireless technologies competing against each other. GPRS is based on GSM (Global System for Mobile Communications) which is why you often hear these two mentioned in the same sentence. CDMA and GSM vary greatly in terms of technology, security, data transfer speeds, and global reach.
CDMA is the dominant standard in the United States with carriers such as Sprint and Verizon yet holds less than 20 percent of the global market; GSM technology is used by AT&T and T-mobile. CDMA uses the spread spectrum which makes the most out of the available bandwidth while GSM operates on the wedge spectrum. The difference is evident when comparing the data transfer rates. CDMA has a maximum download speed of 2 mbps while GSM only reaches 384 kbps.
Security is a major factor in wireless technologies, even more so when it comes to wireless payment terminals.CDMA offers superior security features compared to GSM. The main reason is because every user has a unique code with CDMA making it harder to detect the signal, whereas GSM signals are concentrated in the narrow bandwidth. This doesn't mean GSM technology is obsolete, it simply means CDMA offers a higher level or security.
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