Which Credit Card Reader Is Appropriate For You?
When drafting about your business out it’s likely that deciding which credit card machine you’ll use is not at the top of the list. However, credit card machines play a very important role in your business apart from the payment processing potential. Whether you call it a credit card terminal, credit card machine, we’re discussing the device that permits to accept credit card payments.
This world is too big in terms of products and their successive offerings. The purpose of this article is to help you make a decision when picking the appropriate credit card machine which is suitable for your business. We’ll direct you through credit card terminal features, options, and so much more. Tie your knot and get ready to run, because this is your crash course to all things credit card machines.
Credit Card Reader Characteristics
Setting your business up with the correct credit card terminal is one of those important steps every business owner should take. 70 % of consumers choose to use a credit or debit card for daily transactions. The requirement is unmistakably there for your business to offer the payment method customers prefer.
There is much more to a credit card machine than easily allowing you the ability to accept credit cards. The design, the link in between, and ease of use all play a factor when it comes to credit card machines.
There is a cause more outdated models are being replaced, namely, look and efficiency. Credit card machines play into your business’ branding and customer experience. This is why it’s foremost to select the right credit card terminal for your business.
Not to mention there are various types of credit card machines out there to select from. Choosing the right and correct one for your business can improvise your operational process, amplify the user experience, and help in the increment of sales. Let’s talk about the different credit card terminals out there and consider the advantages that could make it the perfect remedy for your business.
Varieties of Credit Card Readers
Technology has assisted a lot and brought new innovative credit card machines in addition to those traditional devices. Whether you run a small business or a large operation, you need a credit card terminal to direct your business.
The most common and famous type of credit card machine that you have commonly seen is the traditional version. This credit card terminal needs to have a tangible connection to your phone or internet to process payments. These terminals are huge and old-fashioned so they usually stick to one spot, most commonly spotted on a countertop.
The advantages of this sort of credit card terminal consist of the capability of processing multiple types of payments including gift cards, handing card-not-present transactions, and high levels of security. You can add additional layers of security by adding a PIN terminal or other equipment to help protect an infringement or fraudulent activity.
As discussed before, these machines are much huge than other credit card machines so their shifting is limited. You may also need another phone connection or easy and fast access to the internet which means a new additional cost to your business.
Having a mobile terminal that processes payments on one go and this could be a better fit for your business needs. Wireless or mobile payment terminals are not necessarily to be physically connected to a landline or internet. They need assistance from Wi-Fi or 4G to connect wirelessly and process payments.
Having the ability to process payments is beneficial for businesses that operate mobile or if you want to have more free access to take payments in your retail store. Some security issues come initially because of wireless connectivity. Following data security best practices and connecting to a private network will ease out this risk.
Integrated POS Systems
Putting together your POS hardware and software provides another direction to process payments. An integrated POS system is typically more efficient and effective because your POS is integrated with the payment processor you have allotted with. This leads to quicker checkout times and decreases the number of human errors that could occur in the process.
If you have an amazing relationship with your payment processor, this is an amazing, elastic option. Your choices are constrained when it comes to providers. Your rates and terms are determined by the processor so if another payment processor offers a more suitable processing rate, it’s difficult to switch at the moment.
This type of credit card terminal is especially good for handling card-not-present transactions. Online virtual terminals are protected web pages where payment information can be entered into the application itself. The payment is then processed automatically electronically. This enables your business to take payments over the phone and online when linked with a shopping cart. There’s no hardware required or paper involved in these sorts of transactions which saves on costs and reduces waste. Merchants who support B2B payment processing may also give an advantage from potentially lower rates from using a virtual terminal to manually enter information.
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The disadvantage of a virtual terminal is for businesses that process card-present transactions. Retail stores that handle in-person interactions with customers would have to manually enter their customer’s card information. Cash, checks, and debit cards are not able to be accepted physically using virtual terminals.
Credit Card terminal Cost In Your Business?
The costs of a credit card machine differentiate by the type of terminal the merchant chooses. The processing fees can also be different between credit card terminals since some are constructed specifically for accepting certain types of payment methods like for CBD merchants and for the high-risk business owner. For example, CNP transactions cost can be increased more for business owners to process.
Lastly, payment processors may use different pricing models to control your rates. Let’s discuss what to expect below.
There are four, primary pricing lists that payment processors use to determine the types of credit card processing fees you will be charged :
1. Tiered pricing: Typically there are three tiers – Qualified, Mid-Qualified, and Non-Qualified. Fewer fees are charged for transactions that fall into the Qualified category. This is generally where debit and non-rewards credit card transactions come under.
2. Blended pricing: Charges a flat rate for all transactions. Therefore, credit cards, debit cards, reward cards, etc. all have almost the same rate.
3. interchange-plus pricing: Your rate is divided into two components: the interchange that is set by the credit card networks (Visa, MasterCard), and in addition is the mark-up charged by the processor.
4. Membership-based pricing: You pay a monthly or annual membership fee that is completely based on the interchange rates that the card networks set.
The other influencers in your rates may include:
- Whether the credit card is swiped or key-in: “Card-Present” transactions where the card is swiped tend to incur cheap fees because they have moderate risk associated with them.
- Type of card that’s used: Credit cards that have rewards or are considered a business cards have heavy fees when used.
Just like the processing fees, hardware rates can differentiate between terminal choice and provider. However, here’s a range to provide an idea of what to expect to pay for different types of credit card machines.
- Traditional terminals: $100 to $300
- Mobile/Wireless: $100 to $350+
- Integrated POS: $400 to over $1000
- Virtual terminals: No hardware costs are charged, there’s typically a subscription fee or percentage rate for processing payments using this credit card terminal
Choosing the Right Credit Card Reader
When selecting the right credit card machine, you important factor in certain variables and consider your regular business activities. For example, if you run an online eCommerce store then you would benefit most from a virtual terminal. A retail bakery business might find proper and amazing use to a traditional terminal. Especially, if all your purchases are card-present transactions.
Renting vs Buying
You might have the option of renting your credit card terminal. This is generally a very bad idea. Renting a terminal can cost anywhere from $30 a month to over $100 for several years. Futuristically, that’s going to cost you more than just buying your credit card machine. It’s better to pay in advance and own the machine straight away and save yourself the money.
Unless you want to start from the beginning, consider the hardware and software that you already pursue when choosing the right credit card machine. Ask your payment processor which sort of technologies your existing hardware supports. Likely, you won’t need new equipment even if you’re switching providers because they reprogram your hardware to work with their system.
The Types of Payments You Accept
Not necessarily all credit card machines can accept all the types of payment forms out there. Consider what forms of payment your business needs to accept. This could include cash, debit, mobile wallets, and EMV cards. Digital payments are at the boom and it’s ruling the market with business owners, will you pursue them?
Your credit card machine should be able to handle all of your payment expectations.
What Payment Guru Says on Credit Card Readers
Accepting credit cards is a must in today’s world. But there is much more thing to do. Your business must have the correct credit card terminal to securely and efficiently process the forms of payments that your customers want to use. Payment Guru will provide the merchants with an amazing credit card terminal for all sorts of business in their nature. Payment Guru is always ready to help their merchants any time anywhere.