“Simply put, there are five basic terminal
options: Dial up, IP, Gateway, Wireless, and Mobile. Each has its benefits, so
let’s discuss the options so you are ready to make the best choice.”
Great! You worked
hard and you got the big contract. They’re ready to make their first payment
and you’re ready to get started on the job right away. The problem is, you need
to accept their credit card information, and you need to be prepared to do it
in a way that is convenient for that ever-elusive big client.
Surely
we can all use a vacation, but when you are working so hard that you forget
about accepting payments, it’s time to take a step back. You could spend your
precious time trying to sort out available credit card processing options and
decoding all of the associated jargon and model numbers, but you’re busy. Let’s
get you ready to decide right now, in just a few minutes.
Simply
put, there are five basic terminal options: Dial up, IP, Gateway, Wireless, and
Mobile. Each has its benefits, so let’s discuss the options so you are ready to
make the best choice.
Dial
up and IP options are the ones you’re used to seeing at various retailers. They
take your card, swipe it and sign a receipt or key your pin. Some of these
terminals use phone lines. In other words, they’re dial up terminals. Others
use a high speed internet connection, and therefore, are IP terminals
You
are probably familiar with Gateway terminals as well. When you order something
online and key in your credit card number, you are using a gateway terminal.
These are generally associated with more risk than dial-up and IP terminals,
because the transaction does not happen face-to-face. What do higher risk
transactions mean for you? They generally come with higher rates. Selling on
line can increase sales which justify the extra investment.
Wireless
terminals are just that. They are terminals that look like traditional dial up
and IP terminals, but they work wirelessly. They communicate like cell phones,
but are a little more reliable, so you can take your business on the go. The
downfall here is that wireless terminals are pricey when you compare them to
other mobile payment options. They are for businesses that do not use any other
wireless devices (i.e. smart phones or tablets). However, all things
considered, if you chose another mobile option, you would save enough to buy
the mobile devices you want. So, unless you have a strong reason behind
avoiding smart phones or tablets, you probably won’t opt for a wireless
terminal.
Finally
there is a mobile option that allows you to use your smart phone or tablet to
get paid. You simply attach a card reader to your device. Generally, you can
also key in transactions using that same device as well as your PC. This means
you can receive payments in or out of your office or store no matter what. So, for very competitive rates, you can be
ready to go mobile at the drop of a hat. The drawback to this option is that
you have to be selective about your provider. You will see some big box companies
that offer free card readers or set ups. Beware of offers that seem too good to
be true and use your best judgment. It is very easy to be tempted with a “free”
start up, but as you probably already know, you will pay for that in the long
run.
Now
that we know the various types of terminals, let’s discuss how to decide which
is right for your business. Take a
moment and think about your credit card needs. Some small businesses simply
need to accept credit cards in their own location. Others need maximum payment
flexibility for multiple locations. Where will you be accepting payment? Will
you need to make sales on line? Are you
planning on expanding in the near future? What kind of phone lines does your company
use? Do you use devices like smart phones and tablets regularly? These are all
questions that will help you make a decision. Let’s discuss reasons to choose
each kind of terminal.
Dial up or IP: Smaller businesses that
depend on the additional profit they earn because they accept credit cards may opt
for dial up or IP. These terminals are
simple and easy to use. Remember, if you are using these terminals to lower
cost of credit card acceptance; be sure to swipe credit cards as often as
possible instead of keying them in.
This will help you save a little more in processing fees. If you think a dial up or IP terminal is right
for you, you are probably wondering how to decide between the two. If you have
internet access, you will probably choose an IP terminal. They process
transactions faster than dial up. Just be sure that you are aware of what kind
of phone lines your business uses. Digital phone lines generally are not
compatible with dial up terminals and most processors no longer support this
combination.
Gateway: The need for this terminal can
be obvious, but it has an application you may not have considered. If you
currently accept payments online, or if you plan to in the future, you will
need a gateway terminal. This will allow customers and clients to key in their
own credit card information on your website. Your processor handles the rest. What
you may not have considered is that a gateway can be a great way to accept
credit cards for mail orders or telephone orders (MOTO, for short). You can key in these payments anywhere, as
long as you have an internet connection. This can really add a level of
convenience and versatility to your business.
Wireless: Wireless options are great
for providing mobility. They are reliable, and they look similar to traditional
terminals. However, like traditional terminals, they generate higher fees for
keying cards in. They do not provide online reporting or a user interface, and
they can be expensive. If you are considering purchasing wireless terminals,
take a step back. By the time you purchase your terminals, you will have spent
as much as you would have if you had purchased smart phones or tablets and card readers. Unless you absolutely
cannot use smart phones or tablets, choose mobile over wireless. You will have
more flexibility and get more for your investment
Mobile: For extreme payment
flexibility, choose a mobile option that comes with a gateway. Remember, just
because you can be mobile does not
mean you must, and just because you can
key in transactions through your gateway, does not mean you must. You can still
accept payment at your location, you can accept payment on any job site, you
can accept payment for MOTO purchases, and you can accept payments
on-line. This kind of service is not
very expensive and it offers the maximum number of benefits. Start up costs
should leave you with enough money left over to invest in the devices of your
choice. Just imagine yourself with that
brand new smart phone you have had your eye on.
Once again, only
you know what is best for your business, but a comprehensive overview of
options is fundamental to making the right choice. When you are unsure, always do your homework. Very catchy deals that are
unreliable may seem appealing, but you want to invest in credit card processing
that is honest, and ultimately beneficial to the sustainability of your
company. A fair price is even fairer when you can trust your service provider.
If it means that ever-elusive big client comes back time and time again, then
your homework, and your decision to choose reliability, were both well worth
it.