Merchant Account Guide for New Businesses (part 2)

Credit Card Processing Equipment

You will have several options for selecting processing equipment. The most common method for retail businesses is to use a credit card processing machine. Other methods are online virtual terminals, and PC based processing software. There are also wireless credit card machines for mobile businesses. Credit card machines are the easiest way for a small merchant service organization to gain money. They will offer you two options. The first option is to lease the credit card machine, and the second option is to purchase the machine. Unless absolutely necessary, do not lease a credit card machine. You will pay several times the value of the machine, and you will be stuck in a non-cancelable lease for 3 or more years. The small provider will also quote you an outrageous price for a very cheap terminal. Do some research for terminals on the Internet, especially if you know the model that you are looking for. Stay away from ebay terminals, although cheap, they often have service requirements associated with them. The average price for a simple terminal with an attached thermal printer is about $300 - $400, for a new terminal. For a model without a printer, expect to pay $200 - $250 for a new terminal. And, for a wireless model expect to pay $800 - $1000 for a new wireless terminal. If you have an online store, or are planning on processing over the internet, expect to pay an additional $10 - $15 per month, and a $40 - $100 setup fee. If the price for equipment seems excessive or the company keeps pushing a lease, take your business elsewhere. This is one of the first signs of a business you don't want to deal with. Look for a provider that will assign you an account manager, and make sure you have a second contact if your account manager is not available when you need them. No one can be available all the time, so have a backup person you can talk to.

Once you have found what seems to be a good company that has good equipment prices and friendly helpful sales persons, ask for them to fax or email you an application. The sales person will send you the application for a processing bank that will underwrite your credit card processing. By this time they should have asked you a lot of questions about your business, and offered to answer any questions that you might have.

Merchant Account Guide Part 1
Merchant Account Guide Part 2
Merchant Account Guide Part 3