When choosing a credit card acceptance provider (merchant), do you usually have to buy the equpment?
Posted on October 2nd, 2009 by admin
I am in the process of buying an existing retail store. The current owner is trying to get me to buy the current credit card machine. I was under the assumption that when you signed up with a credit card acceptance company, they provided the machine at no charge… am I right? She is trying to get me to pay $400 for this credit card swiper.
Please no answers like "you don’t know anything about business if you are asking such a stupid question, why are you buying one"…. this is just a simple question that is a small part of the grand scheme of buying this business..
Wow is this a perfect question for me to answer… I actually sell credit card processing, and I can give you all the info you’ll ever need, but…
Plain answer is that one processor might "loan" you a free terminal, but at the end of the day, we all know what "free" is – there’s some catch, be it in higher fees or minimums, etc. I offer free terminals too, but as I just said, you’re simply subsidizing the cost of the machine you’re borrowing from me, but over time.
These machines do cost a lot of money, but depending on the machine the old owner has, it might not even be worth $25, let alone the $400 she’s asking for it.
If you need more help in figuring this out, please feel free to contact me off-line.
Good luck!
J
October 2nd, 2009 at 10:47 am
There’s competition everywhere. Call another banka nd see what they offer. 3 competitors=good research
References :
October 2nd, 2009 at 11:04 am
Wow is this a perfect question for me to answer… I actually sell credit card processing, and I can give you all the info you’ll ever need, but…
Plain answer is that one processor might "loan" you a free terminal, but at the end of the day, we all know what "free" is – there’s some catch, be it in higher fees or minimums, etc. I offer free terminals too, but as I just said, you’re simply subsidizing the cost of the machine you’re borrowing from me, but over time.
These machines do cost a lot of money, but depending on the machine the old owner has, it might not even be worth $25, let alone the $400 she’s asking for it.
If you need more help in figuring this out, please feel free to contact me off-line.
Good luck!
J
References :
October 2nd, 2009 at 11:24 am
Not a dumb question at ALL…
Most organizations (including mine) offer free to use terminals while processing through us. The offset to this is typically monthly minimum charges of $25 (irrelevant if you process more than $2000 per month – as it will never impact you), and a contract term with cancellation fee (typically 36 months – $295 cncl fee in first 12 mo, $195 thereafter), with return of equipment required upon cancellation or termination of the agreement.
As to the necessity of a terminal – that depends on what type of business – what type of product/service – and where you do business. Both wireless/mobile and PC based solutions have gained much popularity.
There are way too many options to list all here – but understand, there is always options available – some costly, some not, which would allow you to accept payment cards.
As to the likeliness the terminal is worth $400 – unless it is wireless on GPRS – the answer is NO. Most terminals can be had for between $200-$275.
And just so you know – you will need to get your own merchant processing agreement, as they are not transferable. Hope this helps..
References :
BrettMansdorf(888)700-7153