6 Credit Processing Machines & Equipment

Credit Processing Machines & Equipment

Finding the correct credit card machine or processing equipment for your business can prove to be almost as tricky and confusing as finding the correct merchant account. There are a lot of different credit card processing options available, and there are pros and cons to each method of processing. The Merchant Council will be releasing equipment guides that talk about each option in detail, but for now we are going to give an overview of each processing method as well as some important general pointers that pertain to each.

6-1 Important Pointers About Processing Equipment

Avoid Proprietary Equipment - Certain types of credit card terminals and processing equipment will only work with a single (or very few) credit card processor. This type of equipment is called " proprietary " equipment. Once you spend hundreds of dollars to purchase a proprietary piece of equipment, you will be married to the processor that the system is compatible with whether you like it or not.

If you ever become unhappy with your processor, you will need to purchase another piece of equipment in order to switch to another processor. Stick to credit card machines and equipment that are made by major manufacturers such as Hypercom, Verifone, and Lipman Nurit when purchasing equipment for your business. These companies hold a large market share and are compatible with many different credit card processors. Most of the machines made by each of these three companies can be reprogrammed at little or no cost to you if you ever need to switch credit card processors.

Purchase Equipment from a reliable Source - The best place to purchase credit card equipment is usually directly from your merchant service provider when you setup your merchant account. Most providers will offer an equipment discount to merchants that will also be setting up a merchant account. If you do find a better deal elsewhere, be sure that you are getting what you pay for. Many merchants find that purchasing credit card machines from unverifiable third parties, like those found on Ebay, can be a total loss. Credit card processing machines and equipment can be very different even if they have the same name and visual appearance. Like any electronic device, it's what's on the inside that counts.

Credit card terminals require a certain amount of memory in order to operate on most processor's systems. Terminals that are sold second-hand often do not have enough memory to meet the demands of the new programs that processors must operate on. Also, it is always a good idea to get some kind of warranty or price protection on equipment. If you purchase your equipment through your merchant service provider, there is a much better chance that they will be receptive to assisting you with terminal issues if they arise because they stand to lose your processing business if they don't. A company that is only interested in selling you the equipment has already gotten what they wanted when the sale is made, and they will probably be tough to get assistance from after the initial sale.

Use Surge Protectors - Credit card machines and terminals are very sensitive to power fluctuations. Their circuitry is very delicate and even a small power surge can fry your terminal. Once you fry your terminal you will also lose all of the information that is stored in the current batch of transactions. Unfortunately, in a situation like this a $400 credit card machine may be the least of your worries. To avoid having your terminal fried in a thunderstorm or by a random power surge, you should never plug your terminal directly into the wall outlet. Instead, plug your credit card terminal into a surge protector.

Avoid Leasing Equipment - The option to lease credit card terminals and machines is a relic that has been hanging around since before the advent of the Internet, and the subsequent fierce competition among merchant service providers. This competition has brought the prices of processing equipment down so low that it costs as much as 5 times the original purchase price of a piece of equipment to buy out a lease agreement. Lease agreements are typically contractually bound for a four-year period or longer.

Lease terms are not negotiable, and leases cannot be cancelled before the full balance of the lease has been paid in full. For example, a popular processing terminal is a Verifone Omni 3200. This terminal can be purchased online from reputable vendors for $300-350. The same exact piece of equipment can also be leased for $19.99 - $29.99 a month for 48 months from these same vendors. The total paid for the terminal after the 48-month period will be between $959.52 - $1439.52.

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