With
so many choices, it can be hard to know what's best
for your business.
We've done the homework to
reduce the complexity and simplify your decision.
Tips for buying bankcard terminals
Begin with a professional consultation to identify the right solution for your business. If that decision leads to the need to acquire a stand alone credit card processing terminal, carefully consider the following:
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Avoid over paying, however strongly consider more than initial equipment costs when shopping. Yes, there will always be someone who will sell you something cheaper but what is the overall cost of ownership.
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Be aware that there are companies that artificially lower the price of equipment simply to lock merchants into long-term processing contracts with stiff cancellation and early termination fees.
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Consider that proper programming is key to implementation success.
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Having your equipment warranty with your processor will save you time, effort and shipping costs in the long run, so choose your processing partner and your terminal purchase as a package based on overall value - a fair deal on both.
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As you know nothing is free. Free equipment offers are laden with monthly and annual service fees, long-term contractual obligations and you never own the terminal so you can't keep it at the end of your commitment. Before you fall for “Free”, think of it as a red flag and closely examine all the fine print to find the catch.
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Equipment that was originally deployed as “Free” but was not returned to the processor can often be found on auction sites. Pay special attention to this risk because these units contain a proprietary chip so that it cannot be reprogrammed for your needs.
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Proprietary equipment that will only work on a single processing network will drive up your processing cost in the long run. Choose a unit with many network certifications.
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Is the terminal PCI Compliant? Effective January 1, 2008, Phase 1 of the Visa Payment Application Mandates stipulates that no merchant may be boarded on any processor where the payment application is non-compliant. Many units may currently work (grand fathered in) but the ability to support, change programming or reprogram may be discontinued requiring a hardware upgrade. Check with us first.
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Read the stipulations of the price agreement. Is price only valid if you process with them on a long-term 3-year contract with early termination penalty? Is the warranty based on a lease agreement? What is there a warranty/guarantee/return policy? How are shipping, handling, programming and taxes charged?
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Be careful when purchasing used or refurbished terminals. There are many changes in the industry with manufacturers discontinuing terminals and processors retiring payment applications.
- Never LEASE bankcard equipment!! The number one reason not to lease bankcard equipment is that you are upside down before you sign the personal guarantee. For example: a $39 lease for 48 months will cost over $1,800. Within months the terminal equipment rapidly depreciates to the used equipment prices of around $300 or less, but you still owe $1,700.
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