How Much Does a Credit Card Machine Cost?
A credit card machine allows your business to accept a credit card payment from customers with ease. With the emergence of credit cards, the methods of payment have become easy. Subject to minimum monthly repayments, a credit card is linked to an account which may be settled in full by a stipulated date or may be repaid over a period of time. Payment with credit cards would not be possible without credit card processing machines, commonly known as a credit card terminal. Over the years, these devices that do transactions with debit or credit cards have evolved from simple to sophisticated ones. Now, we can see credit card machines with touch screen capabilities – a far cry from the simple machines they were once before.
How much does it cost?
- Depending on the type of machine, be prepared to spend anywhere from $60 to as much as $600 for a credit card machine.
- Merchantwarehouse.com, for example, features a complete line of credit card processing equipment including credit card machines, wireless credit card terminals, credit card software, printers and PIN pads. Most simple credit card terminals range from around $80 to $170. The specific prices depend largely on the model and the features the credit card terminal can perform.
- The Hypercom T7Plus, for instance, is priced at $149 and is commonly used since it has more speed and transaction power than most credit card terminals. However, other high-end card terminals like the Hypercom Optimum T4210 are about $179. With almost the same price, this device has large memory capacity, rapid transaction processing and multi-application capabilities that are great for businessmen on the go.
- Other models are priced at over $200. The Nurit 8400, for instance, marks at $215. Although this is more expensive than common brands and models, this device has an advanced memory and is more resilient for business use. In addition, its security features offer capacity upgrades.
- Wireless credit card machines do not use the hassle of traditional phone lines. However, wireless credit card terminals are more expensive than their wired counterparts. Regardless of brands, the average price marks at $350 – $700. Way Systems 1581, for example, is priced at $349 while the VeriFone Vx610 costs $699.
- Aside from credit card terminals, PIN Pads are also important parts of credit card machines. Basically, this is a numeric keypad a consumer uses to enter a PIN when paying by debit card at a retail merchant or using an ATM. PIN pads also have different price ranges as well. Depending on the simplicity or the complexity of the device, these devices are priced from $75 to $140. As usual, refurbished devices cost less while other retail stores sell devices beyond the suggested retail price.
What is going to be included?
- Credit card terminals will allow you to accept major credit card brands such as Visa, Mastercard and American Express.
- Over the years, credit card machines stayed true to their purpose of securely transmitting data. This is done over a standard telephone line or through the internet. For a typical wired credit card terminal, a phone line connection is needed. The credit card terminal acts as a sort of modem, transmitting the data to the verification center. However, not all terminals work like this. Some are wireless, relying on Wi-Fi or cellular communications for data verification. Wireless credit card machines can securely transmit credit card data using either cellular networks or satellite networks.
- Current credit card machines have evolved from the simple devices they were once. Now, not only credit cards are processed but debit cards as well. In addition, these machines handle gift cards, checks and the like.
- The included features on the machine largely depend on the specific model you have purchased. This includes the memory, power, display, printer, ports, card reader, paper roll and modem, among many others. Thus, it is important for you to review the specs of the machine you are planning to buy.
What are the extra costs?
- Shipping fees. Like most of the commodities bought online, shipping fees are to be considered when you opt to buy credit card machines online. Minimal tax will also add up to the overall cost. Just do not forget to ask about these fees before you finalize your order to avoid unpleasant surprises on the total payment.
- Other things needed to operate the device. It is known that credit card machines such as the credit card terminal will not work without a phone line (if you are using traditional wired devices) or wireless internet connection (if much sophisticated models are being used.) Thus, you need to secure all the necessary connections before these devices will be fully operational. After all, the machine does not include these important inclusions.
- Necessary Supplies. Papers, ink cartridges and ribbons are needed to constantly make your credit card machine usable. These, of course, will take toll on your budget, not to mention the maintenance and parts replacement you may need in order to keep your device fully functional.
- Processing fees. Do not forget that when you start accepting credit cards, the credit card merchant will take a small percentage of the sales. SEE: “How much does credit card processing cost?”
Factors that influence the price:
- Model. As mentioned, there are differences in each of the specific model of credit card machines. Of course, models with wireless capabilities are more expensive than the traditional ones.
- Location. Like any other product, the prices for credit card machines are influenced by the location. Aside from the fact that the location is a determining factor of the shipping fees for orders done online, the prices vary from one store location to another. Staples.com, for example, sells a particular model of credit card terminal (Hypercom T7Plus Credit Card Machine) in California for $259.99. The said device can be bought at other stores at around $150 – $200.
Tips to know:
- The functionality of dedicated credit card terminal hardware can be replaced with an appropriate software and reader device using a PC or a smartphone. These terminal applications usually support manual entry of the credit card number. The applications may work with hardware readers that can transfer smart card ship information to the application.
- A virtual credit card terminal is also another kind of terminal that is a Web-based service. This way, no swiping takes place except the virtual kind. This technically eradicates the system of physically swiping cards. However, this is only applicable if you constantly buy things online.
How can I save money?
- As suggested by Wisegeek.net, a good way to reduce costs is to buy the machine outright rather than leasing. Processing fees are an unavoidable part of purchasing this type of processing equipment, so merchants should compare the cost of using their own merchant account provider and processing services offered through major credit card companies.
- Buy directly from warehouses since their prices are way too low compared to most commercial stores. The price differences can sometimes reach $50 or more. A PIN Pad, for instance, is sold at Staples at $149 while it only costs $69 when bought directly at Merchant Warehouse.
- There are many refurbished products available on the market. If you do not mind purchasing used, this can save you a few dollars.
- Purchase a credit card machine that already has a pin pad. This way you will not to to purchase this separate device.