Getting a credit card machine for your business is not a complex process and is usually done working hand in hand with your merchant account representative while setting up your account. There are a few things to consider when reviewing potential candidates for a credit card terminal. The first is to analyze what business needs to you have and what you want this machine to do. You should also consider whether you require a terminal to do more than simply send the transaction information back and forth. Another consideration is whether you should lease or buy the machine. Some merchant providers have a free terminal program as well. Lastly, finding the right merchant account service representative to work with may be the best thing you can do to insure your success when dealing with electronic payment processing.
types of machines: You have options for the most simple type of credit card processing machine all the way through the most complex including the touch screen multiple menu item with the embedded USB attached reader which is usually in the form of a cash register machine. The decision on which type of credit card machine to get will depend entirely on what you need it to do. A good question to ask is “what are my competitors using?” and whether or not you believe it is sufficient. You may also consider who will be using the machine the most and unless you are running the hands on day to day business operations, it will most likely be one of your employees that will be running the equipment. Is the equipment you are considering simple enough for one of your employees to use?
buy or lease: The question is a valid one as to whether or not you should buy your credit card machine or lease it. This depends on the availability of cash or capital you have to invest in equipment and may also depend on whether or not you are looking for an ongoing monthly operating expense or a one time capital expense. The also will depend on the cost. If the credit card machines you are considering are a part of a cash register system with multiple stations such as with a restaurant or grocery store, then you may not have capital available to purchase the machines. If you do lease the equipment, the reality is that it will cost more over time, but as cost is relative, this may be a question for your accountant.
free terminal program: Many merchant providers do have a free terminal program. What this means is that instead of having you purchase your credit card machine, they will instead get you a machine that you can use for the duration of the account. They may have an addendum to the contract that will include details of their free terminal program, so you should look into this to make sure you know what you’re getting into. This may be a very good option depending on the needs you have, but will at very least extend the length of the contract usually be 1 year. So if you have a 1 year, it will extend to 2, or a 2 year will extend to 3. Check with your provider for details.
merchant account rep: Finding and working with a good merchant account representative may be the best decision you can make regarding the equipment purchase and then overall working with someone who understands the industry and can give you advice on the best course of action to take with your payment processing needs as a business owner. It may be worth asking around to other business owners either in your industry or even asking around at a local chamber of commerce meeting or other business networking event to see who may be a good provider or agent for you to work with.
Credit card machines are not complicated for the most part. A good merchant account should be one that just works. What I mean by that is having a credit card payment processing situation where you don’t have to think about it too much and that you can spend a minimal amount of time on the phone with your merchant account company or with the terminal support is very valuable. As a quick example. Let’s say as a business owner, your time is worth $20 per hour. If you end up in a given month with 10 hours working to get a terminal fixed, this is the equivalent of $200 worth of your time. The question would be is the time more valuable to you than the money? If so, you may even consider a redundancy which would include a secondary machine that is also programmed in advance. If the machine breaks down, or something else happens with your credit card machine, you could swap it out, send the non-working one back, get it reprogrammed, shipped to you, and use it as a secondary. Things like this are options that your merchant provider should be able to help you with.
Good luck! You have enough going against you just to stay in business. The last thing you need is some garbage credit card machine that won’t work. Work with a good agent and you’ll be able to get the majority of these issues resolved before they ever happen to you!
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