Why Free Terminals Are Not Actually Free

Why Free Terminals Aren’t Really Free

You’ve seen the advertisements. Sign up for a merchant account with XYZ Merchants and receive a FREE* credit card processing terminal! Sign up today for FREE* Tablet POS System! Sounds like a great deal, right? Sounds almost… too good to be true! That’s because, unfortunately, it is. As any business owner knows, everything costs money. If a business were to purchase t-shirts, for example, and sell those t-shirts for less than the purchase price, they’d likely go out of business (very quickly). How does that relate to the free terminal? The processor providing the terminal for free had a cost to acquire that terminal. That cost needs to be made up in other ways if they are not charging for the device itself. With a free terminal or free POS System often comes a hefty early termination fee, strings attached via the inability to effectively switch processors (system dependence) and…

Read Full Post

Dial vs Ethernet

Let’s imagine you’re driving your car and all of a sudden it stops. You might be inclined to immediately assume the cause of the problem is a defect in the manufacturing of the car, like the engine. But what if the problem isn’t the vehicle? You could have just run out of gas. This same principal applies to your credit card terminal; while there are numerous issues that can result from your terminals hardware these are not the only issues that you should worry about. Going back to the car analogy, your terminals communication network is like the gas that powers your credit card processing terminal. The two most common communications methods is Ethernet and Dial. A Dial connection is sent over phone lines, whereas an Ethernet connection processes over high speed internet. We could delve into the specifics as to how the information is processed over each of these…

Read Full Post