6-3 Credit Card Terminals and Machines

Credit Card Terminals and Machines

Aside from staying away from proprietary credit card machines as noted above, it is important to understand that credit card machines do not cost as much as people commonly think that they do .

Many merchant service providers grossly overcharge for credit card processing equipment. Sadly enough, many self-proclaimed online authorities about merchant accounts and credit card processing also seem to think that it is normal for a credit card processing terminal to cost upwards of $1,000. Truth be told, you should pay no more than $350 for an all-in-one credit terminal/printer combination that is brand new. If your merchant service provider is price-gouging with equipment costs, do some research on the Internet and let them know that you have found the terminal cheaper elsewhere. Show them where you've found the better price, and ask that they match it in order to earn your business.

Credit card swipe terminals are most commonly used in conjunction with a retail merchant account, or with basic mail order merchant accounts where the credit card information is keyed-in. Most merchants prefer to purchase a credit card machine with a built-in printer in order to save counter space.

Most credit card processing machines and terminals communicate with the processor through an internal modem that dials out over a standard phone line. Credit card machines only require a phone line when they are communicating with the processor, and they may be left unplugged any other time. Most businesses use a telephone line splitter enabling them to put their credit card machine on the same line as their fax machine, or even their regular phone. This eliminates that hassle of plugging in the terminal every time a customer wants to pay by credit card if there is only one phone line available.

High-speed Internet-ready credit card machines have just started to become popular, and many major manufacturers are starting to take notice. Verifone has already released a few terminal models that are able to communicate with the processor via a high-speed internet connection. These terminals tend to be a little faster at processing transactions, and they will not tie up your phone line. The terminal's ability to communicate with the processor via the Internet also translates to monetary savings by eliminating the need for additional phone lines.

Credit card processing terminals and machines do not currently integrate with computer accounting software or printers meant for your personal computer. Terminal integration with computers is something that would be very convenient, but has yet to be released into the marketplace. Credit card machines are strictly stand-alone applications.

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