Which Credit Card Terminals Are Best For Your Business?

A wide range of premium credit card terminals with free placement are often offered by many of the credit card processing retail and business companies competing for your business. Accepting a free credit card terminal could be a great option for a business which wants to accept credit card payments for the first time without incurring any upfront expense. This can also be a good alternative for the merchant or business who has outdated equipment and wants to avoid the expense of buying or leasing a new credit card processing terminal.

One of the downsides to accepting a free credit card processing terminal is that most credit card payment processing services companies will ask you to sign a contract and possibly a higher credit card processing rate; be sure to read the fine print.

Several broad categories of credit card processing terminals exist: traditional terminals, wireless terminals (portable credit card terminals) and virtual or software based terminals. The merits and drawbacks for each are discussed below.

TRADITIONAL CREDIT CARD PROCESSING TERMINALS

These are the credit card processing machines you are most familiar with and are found in most brick-and-mortar businesses.

1. Most consumers expect to be able to pay by credit card or debit card.
2. Accepting credit card payments limits bad debt and improves cash flow, while reducing the need to invoice customers which in turn reduces past due accounts receivable.
3. Provides potential for larger orders and impulse buys.
4. Affordable-- Credit card rates have become very reasonable with many credit card processing companies offering free credit card terminals.
5. The newer credit card processing machines give you the option of accepting checks in addition to credit cards and debit cards.
6. Can accept gift and loyalty cards
7. Offer age verification for tobacco and alcohol.

WIRELESS CREDIT CARD PROCESSING TERMINALS

Wireless credit card processing terminals are a great option for mobile merchants such as plumbers, electricians, landscape companies as well as merchants of trade shows and flea markets who want the convenience these credit card machines offer.

Benefits

1. Small, light weight and portable
2. Saves money; no need for an additional phone line
3. Swipe rates are usually much lower than keyed in rates
4. Increased security--you will reduce the amount of cash you and your employees need to handle by accepting credit cards

Drawbacks

1. Monthly wireless fees
2. Many portable credit card machines are not capable of accepting checks.

VIRTUAL TERMINALS

As a merchant accepting credit cards online, you can expect to pay a higher rate. This higher credit card processing rate is primarily due to the customer not being physically present to sign for the purchase. Therefore, the risk to the credit card company and to yourself is increased, resulting in a higher rate. Typically, your credit card payment processing merchant will have software available that allows you to to process your transactions over the internet.

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