What to look for in finding a merchant account, and lastly the information you'll need to obtain your retail merchant account. Let's switch gears a bit and look into choosing a POS terminal for your business. Do you need a full-featured all-in-one solution? Perhaps just a basic swipe terminal solution is all that's required. We can aid you in the decision-making process.
Determining the Features Your Swipe Terminal Needs Before you begin looking at swipe terminals, you need to come to a conclusion on what types of payment you will want to accept. POS terminals have the ability to accept much more than just traditional credit cards. Here are some of the other types of payment that can be processed, in addition to credit cards:
Debit Cards Most all POS terminals have the option of allowing you to accept debit cards. Some terminals have an internal PIN pad which your customers use to enter their PINs. Others have a port to connect a hand-held PIN pad. The biggest benefit to accepting debit cards is the fact that only a transaction fee is charged, almost never a discount rate. Choosing whether to have a POS swipe terminal with an internal or external PIN pad depends on some factors like:
1. Do you mind customers handling your terminal to enter their PIN? Or would you be more comfortable with them using a hand-held PIN pad instead? 2. There is less clutter with an internal PIN pad since it is an all-in-one unit External PIN pads usually can be purchased for between $100 and $200.
Electronic Check Conversion (ECC) Simply put, ECC will allow you to process paper checks electronically. In order to do this you'd need to have a check imager/reader. These run a few hundred dollars. What they do is scan the MICR line at the bottom of the check and take an image of the entire check to store for your records. You might see this at some bank ATM machines, where they scan your check and print a copy of it out on your receipt.
Here are some advantages to using Electronic Check Conversion: 1. Money is deposited into your account faster 2. Reduces paper check handling, like eliminating the need to deposit checks at your bank 3. Eliminates risk of losing or having paper checks stolen 4. Returned checks are reported sooner so you can collect more effectively
Loyalty Cards (gift and rewards cards) Accepting loyalty cards is great if you plan to be very promotional with your goods. This solution is good for primary cash environments like grocery, movie rental, hardware stores, etc. Accepting loyalty cards will help increase business. You've seen these at grocery stores where they scan a little card that gives you "bonus points" for shopping. They also allow you to take advantage of current promotions. Many terminals can be programmed to accept loyalty cards.
Smart Cards Smart cards are still very new. In addition to paying for goods, like a credit card, smart cards have a special chip in them that allows you to store specific information. College campuses have begun using these to keep information on students, in addition to allowing them to "charge up" their cards with money. Smart cards will probably take over the traditional credit card market within the next 5 to 10 years. It would be in your best interest to invest in a terminal that can be upgraded for smart cards, either with an internal smart card processor or the addition of a hand-held smart card reader/writer. These external units cost about the same as external PIN pads.
ATM/Check Cards These are commonly referred to as debit cards; however they are actually check/ATM cards. You can tell their difference from typical debit cards because they will have a Visa or MasterCard logo on them. These cards can either be processed the same as credit cards or you can accept them as debit cards where the customer enters in their PIN. It would be beneficial to you if you accept them like you would a PIN-based debit card, then you'd only incur a small transaction fee and no discount rate. This will save you money in processing costs.
Electronic Benefits Transfer (EBT) If you wish to cater to food stamp and cash welfare benefit customers, then accepting EBT cards is for you. EBT isn't just good for food purchases, but can include many non-food items. EBT works just like debit card processing. You will either need a POS terminal that has an internal PIN pad or purchase an external PIN pad. EBT customers need to be able to enter in their PIN during checkout.
Today’s financial market is flooded with a variety of credit card terminals. Of course, there is a credit card for every one. The user has to not only select the best but also the right credit card terminal also. The credit card terminal chosen has to fulfill the user’s needs. The credit card terminal selected must be safe and secure. After the sale is over the credit card is swiped into the credit card terminal and the processing takes place. The credit card number is typed on the credit card terminal keypad. Approval from the banker who has issued the credit card is obtained after a couple of minutes of waiting, through the terminal. A separate printer devise is attached to the credit card terminal and the printer prints the receipt for credit sale in duplicate. Signature of the credit card user is obtained in the receipts and one copy of the receipt is given to the customer. The merchant retains the other copy of the receipt till receives payment for the same the banker who has issued the credit card. A credit card terminal is also used by mail order or Internet order businesses, in which the card is not physically present. The merchant is required to punch in the credit card information into the terminal to process the payment. On the other hand, it is advisable, a better option for these businesses, is to use credit card processing software or an Internet payment gateway. The cost of the credit card terminal is also another factor, which depends upon the brand name and the life of the credit card terminal. The devices attached to the credit card terminal such as inbuilt terminal etc. also matter the cost of the terminal.
Wireless networks have advanced technologically over the last three decades. Now they offer so many comprehensive services efficiently and very cost effective way. The increasing demand of wireless credit card processing has seen a hectic competition from various service providers. They come with very competitive rates at the same time offer great customer service enabling to accept payment from any and every corner of the globe. When selecting wireless credit card processing service provider, be sure to check that they provide secure virtual terminal and point of sale capabilities. These will ensure a safer and a faster transaction, fast live authorizations, making it easy for mobile or delivery businesses to accept credit cards. This wireless credit card processing is cost-effective, easy and provides the means to accept credit cards from any part of the globe. It also enables you to acquire a real-time authorization for transactions. The credit card terminal benefits merchants with high volume sales, and merchants who need extra fast transaction speeds. Wireless networks have improved to the point where they are now very comprehensive and cost effective. The list of beneficiaries from credit card terminals is endless. A wireless terminal will actually boost your business and help you grab potential customers that might not have bought with cash on hand.
A credit card terminal must be light-weighted, handheld design makes it easy to carry. Built-in thermal printer features easy, drop-in paper loading to prevent jams. Multiple fraud-prevention features: address verification service, customer receipt truncation programs. The optional accessories of credit card terminal must include replacement batteries and carrying case with belt clip.
Both Jack C & Daniel Spivey are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.