| Purchasing a credit card terminal 101 |
| Written by Henry Johnson | |
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Credit card terminals are becoming ubiquitous as more and more businesses are taking advantage of them to offer their customers an easy method of payment. Once a rather esoteric device only available at certain high end stores, the rapid ascent of the Internet and electronic wizardry has given them a nearly 100 percent saturation rate in American's retail businesses. Smaller mom and pop operations are also catching on, as fewer and fewer Americans are carrying cash, opting instead to pay with plastic. If you're a business-owner thinking about purchasing a credit card terminal, there are a few things you should know about their use, their advantages and disadvantages and their history. The main advantage of a credit card machine is convenience. Acceptance of payment by credit card is a simple and easy means of doing business and is a lot less burdensome than dealing with a cash drawer or accepting checks. A major drawback is that many credit card payment processing companies charge a fee for the service, which can cut into your profits. There are three main formats for credit card terminals: stationary terminals, wireless terminals and virtual terminals. Stationary terminals offer security; wireless terminals offer increased portability and virtual terminals offer the convenience of doing commerce over the Internet. All meet basic, required security standards, but the stationary terminal offers the highest level of security from threats, while the wireless version is susceptible from having its signal hacked. Identity theft has become a big concern these days, but federal law makers have taken steps to protect consumers using credit cards. Federal law mandates that all store-owners using credit card terminals must have devices that meet industry security standards for handling and storing data. When choosing a credit card terminal, you'll need to purchase a device that's easy to use and isn't subject to frequent freezes. Before purchasing a credit card terminal, make sure that you can use it, that it has an intuitive interface and has plenty of training tutorials for your employees. Also, you'll probably want a model with a printer so you can keep paper copies to record transactions. For ease and convenience, also try to pick up a model with an external PIN. Customers like it because it allows them to do the transaction themselves, saving time. Make sure that you and your employees all have a good working knowledge of the device you purchase, how it works and what to do if it doesn't. Product support phone numbers should be posted in a prominent place where all employees can see them. One of the most reputable businesses with the widest variety of products to choose from is Verifone. Verifone has a large share of the credit card terminal market, and as such can offer a lot more than other companies in terms of competitive pricing and customer service and product diversity. Credit cards have come a long way from their inception in the 1920s as a means of payment for single businesses only. Luckily, technological advancement has dovetailed, or perhaps initiated their growth, as they are replacing cash money and checks as Americans' preferred method of payment. Support technology such as credit card terminals have made this growth possible, and this growth has fueled business, resulting in both increased spending and borrowing as it has become easier to do both. |
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