Have you encountered the dreaded PayPal card reader error message “Damage to reader detected. Contact PayPal for assistance”? I recently discovered this frustrating issue with my PayPal card reader that had been sitting in storage since 2017. Despite being in pristine condition and stored properly in its original box, the device refused to work when I needed it for payments.
Why PayPal Card Readers Fail After Storage
After researching online, I discovered this is an extremely common problem with PayPal card readers that aren’t used regularly. The issue affects many users who only need their card reader occasionally.
The Technical Explanation Behind PayPal Card Reader Failures
I learned that the PayPal card reader is actually a rebranded Miura Systems M010 device. When I contacted Miura directly about the issue, they provided this enlightening response:
The M010 device is a secure PCI PTS payments device which utilises encryption keys. Within the device there is a main battery (rechargeable) to run the device. In addition there is a coin cell battery to support the device if the device is left to deplete the main battery, this holds the config/key encryption. Once fully depleted, the device is designed to Tamper (lock) as way of protection to the security keys. Miura informs all of our distribution partners to ensure if the device is left, it should be charged up every 6 months to ensure that full depletion does not incur.
In simple terms, the PayPal card reader contains two power sources: a rechargeable main battery and a backup coin cell battery (CR1632). The encryption keys that allow the device to function are erased if both batteries completely die. Once these keys are gone, the reader becomes permanently unusable—even after recharging.
Design Flaws in the PayPal Card Reader
After opening the unit, I confirmed the presence of the 3V CR1632 backup battery. The major design flaw is that this backup battery cannot be replaced. Once it depletes (which happens naturally over time), the device must rely solely on the rechargeable battery to maintain its encryption keys.
This explains why some users can use their PayPal card reader periodically for a few years before encountering this failure—the backup battery eventually dies, leaving the device vulnerable to complete data loss if not regularly charged.
Missing Information in PayPal Card Reader Documentation
What’s particularly frustrating is that PayPal fails to mention this critical maintenance requirement in their documentation. I thoroughly checked the Getting Started guide, box contents, and even the online PayPal card reader User Guide. None mention the need to keep the device charged every six months.
The only battery information provided states “The card reader battery should last 5-6 hours of use”—with no warning about the consequences of long-term storage without charging.
Limited Warranty Protection
PayPal’s warranty for their card reader only lasts one year, which is inadequate for this type of issue. The backup battery typically functions fine during the warranty period, with problems emerging later when the device is no longer covered.
According to Consumer Reports, this issue affects many mobile payment devices, not just the PayPal card reader. However, other manufacturers are typically more transparent about maintenance requirements.
Alternatives to Consider
If you only process payments occasionally, you might want to consider alternatives like Square or SumUp, which offer more reliable readers for infrequent users according to multiple review sites.
Conclusion: Avoid PayPal Card Readers for Occasional Use
Based on my experience and research, the PayPal card reader is not suitable for occasional or infrequent use. If you don’t plan to use it regularly and keep it charged every six months, you’ll likely end up with an expensive paperweight displaying the “Damage to reader detected” error.
| Card Reader | Good for Occasional Use? | Maintenance Required |
| PayPal Card Reader | No | Charge every 6 months |
| Square Reader | Yes | Minimal |
| SumUp Air | Yes | Minimal |
Have you experienced similar issues with your PayPal card reader? Share your experience in the comments below!