We created a guideline of how to use Shopify Car readers. Read the "Tap, Chip, and Swipe card reader" part and maybe you can find a solution to your problem. If there is anything else I can help you with, please let me know, I'm happy to help!
Had you gotten on to Shopify support about it? I have not used the reader for about a year & a half but i am sure before it did the upgrades yesterday that it defaulted to tap right away so they must be able to revert to back you would think. Especially with Covid 19 and people wanting as little contact with items as possible! I am going to get on to them later on today about it