Credit Card Processing Technology
Deciding on whether you want to use a credit card terminal or some form of payment processing software to handle credit card processing transactions is usually straightforward. The answer generally depends on the physical environment in which you will be accepting the charges. The choice usually boils down to whether or not you will have easy access to a computer when you need to charge cards and what kind of transactions systems you already have in place. If a computer is available then credit card payment processing software often provides numerous benefits over traditional credit card terminals. Most users love the reporting features available to them and find it helpful to go back and look up a previous transaction. Payment processing software is also usually less expensive and more user friendly than most new credit card terminals. There are logical reasons why many businesses may be better off with a credit card terminal however. To start with, many businesses already have invested in some sort of cash register or POS system. While some of these can be integrated with payment processing software, many can not. In these cases, it is usually simpler to use a credit card machine rather than cluttering your valuable counter space. Another circumstance when a terminal may be preferable is when your computer may not always be on or may be in an inconvenient location. If you need to take payments in real-time and can’t be inconvenienced with accessing a computer, then you will be better off with a credit card processing terminal.
Credit Card Processing Technology - Selecting the correct equipment
|
With so many different types of credit card equipment on the market these days, choosing the correct type for your business can be a confusing task. In order to help guide you towards the correct choices, here are some questions you should ask yourself when shopping for credit card equipment.
Will customers be using their credit or debit cards in person: If you will be swiping cards directly from your customers, your best option for credit card equipment is probably some sort of credit card terminal and printer combination. If you will not be swiping the cards manually, many merchants will want credit card equipment that is more suited to their specific needs. Software packages are available if there is a PC at the business location or a standard terminal and credit card printer may work just fine.
Is a contactless payment solution the right choice for my business: Merchants who have "quick service" retail operations, and whose average ticket is $25 or less, may benefit from Contactless Payment credit card equipment. The "tap and pay" technology has proven to be most valuable for convenience stores, fast food restaurants, pharmacies, movie theaters and other merchants who rely on faster transaction times and shorter wait times for customers. Merchants can also upgrade their existing credit card equipment to a contactless payment reader without disrupting their operations.
Is there a phone line or broadband internet access available: Most businesses have at least one phone line at their business location and, these days, most have some sort of “always on” internet connection. For these businesses, there are many choices for credit card equipment. Most credit card equipment can share a phone line with a fax, or even the main phone if calls are infrequent and some of the newer terminals can utilize broadband internet for even faster transactions. If no phone or intent is available, such as at a trade-show or for delivery companies, etc, merchants should consider either a battery powered credit card terminal or wireless credit card machines that work over the cell phone networks.
Will you be accepting PIN-based debit card transactions: For those merchants that think they will be accepting debit cards they should consider adding credit card equipment like a PIN Pad to give their customers additional payment options. As described in this article about debit card processing, accepting PIN based transactions may save you money and add value to your customer’s experience.
How many merchant accounts will you need for your business: For almost all businesses the answer is one. There are examples however where multiple merchant accounts are either desirable or a necessity. These merchants will want a piece of credit card equipment that can handle more than one merchant account. There are inexpensive terminals which handle two accounts and more robust units which can handle up to 99. A qualified merchant account sales person should be able to recommend the correct credit card equipment for your specific situation.
Which terminal brands should I consider: Since most of the major credit card equipment manufacturers are producing high quality and feature rich products these days, you really can’t go wrong whatever brand you choose. That said, some of the processors may work better with a particular brand of credit card equipment and some newer pieces of equipment are not certified at every processor immediately upon their release. Again, this is a situation where it is best to let your merchant account sales representative guide you as to the best options given your particular processor and needs.
Credit Card Processing Technology - Selecting credit card processing software
|
More and more merchants are taking advantage of the powerful credit card processing software products available to them. These are systems for virtually any type of processing environment from retail stores to websites. All have their advantages, but selecting the right credit card processing software for your business is very important. Before making a decision merchants should ask themselves a few questions:
Will you be accepting credit cards over the Internet: If so, merchants should lean towards using an online payment gateway in conjunction with their shopping cart. Payment gateways are a type of credit card processing software which is hosted by a third party on a server outside of your business. Your shopping cart, or other payment software, communicates with the payment gateway via the internet and it manages the actual transactions. Our credit card processing companies offer several payment gateways including: Authorize.net, VeriSign, and LinkPoint.
How many credit card transactions will you need to handle at any one time: For most merchants the answer is usually only one, but some merchants who have more than one user or customer running transactions at the same time will need a more robust credit card processing software solution. If there are multiple internal users and they are on a network you can use PC Charge Pro. If the users are not on a network, then a merchant can use a virtual terminal such as the one offered by of Authorize.Net. This virtual terminal will allow users to log in using their web browsers and charge cards from anywhere they have Internet access. Transaction information is centrally located and can be accessed from anywhere.
Will you be charging the same customer's cards on a regular basis: Merchants whose customers are frequently reordering or those who bill their customers on a monthly basis may wish to use credit card processing software that stores credit card information and can charge customers at specified intervals. PC Charge Pro has this feature built in and makes it easy to manage charging customers.
Credit Card Processing Technology - Reasons not to lease credit card terminals
|
Businesses often look at leasing as a viable alternative to purchasing high priced equipment. After all, not many small businesses can foot the bill for a $15,000 color copier. But would you lease a $200 cell phone or a $300 cash register? Of course not... so why do some businesses lease $150-$300 credit card terminals? Most credit card terminal leases involve a 48 month term, and at least $20 a month. That totals $960 in payments! If you buy this same terminal for $160 from one of our merchant account providers, and charge it to a credit card, you could have it paid it off in nine months, with interest, for the same $20 monthly payment.
The Games Lease Providers Play: Most merchants are given inflated costs to make them more inclined to lease. For instance, some companies will say a terminal, which costs $160 for $500. With no frame of reference, many new customers will simply assume this is accurate, but may not have the cash or credit for that amount. Also, some companies claim tax advantages to leasing. This is simply false. It is true that lease payments are deductible, but any business purchase is deductible. Would you rather deduct an expense or have the cash in your pocket?
That’s not the only bad news. Here are a few more facts about leasing credit card terminals…
1: Credit Card Machine Leasing Contracts are Binding.
2: Regardless of your circumstances, you cannot terminate the lease before the term ends.
3: You Have to Return the Equipment. After you spend your $960, you then have to return the terminal.
4: Terminal leasing companies sometimes continue to charge monthly fees beyond the contract term unless you contact them to cancel.
5: Equipment insurance is required for all leases, adding to monthly fees.
|
|
|
|
|
