Free Terminal, Lease or Buy

With the expenses in running a business, many business owners opt not to accept credit cards for their businesses, claiming that they cannot afford the expenses in leasing or buying a credit card terminal nor can they afford the expenses involved in processing credit cards. Because of the many opportunities to transact business with customers, and the competition for customers, business owners cannot afford to be without a terminal. There are several options to consider: one can acquire a free terminal from a reputable merchant service provider with an option to upgrade to a new terminal in one or two years. One can purchase a refurbished terminal at reduced cost or one can lease a terminal with the option for buyout of the terminal at the end of the lease. Any of these options would be a cost savings to the business owner and allow more cash flow for operating the business.

Many merchant services providers are offering the Hypercom T7P terminal for free. This terminal can process approximately 400 transactions per day, while the Nurit terminals can process up to 450 transactions per day. For most small business owners 400 transactions per day are adequate.

This landline terminal does not have wireless communications, nor does it have an internal PIN pad for debit card processing. Instead, the business owner has the option of purchasing an external PIN pad which can be purchased for as little as $150.00. Additionally, if the merchant chooses to provide check verification services, he can purchase a check reader and attach it to the terminal. Gift cards and loyalty cards can also be processed on the Hypercom T7P. It can handle multiple applications such as credit card processing, debit card processing, and check verification all on the same terminal, however it cannot handle credit card processing, debit card processing, check verification and gift cards all on the same terminal. In this case, the Nurit terminals are recommended.

Leasing a brand new terminal involves paying a monthly payment with an option to buy the terminal at the end of the lease period for a lump sum. For most companies, four years is the popular contract term. Monthly payments can be as low as $25.00. Lease payments qualify as an income tax deduction. The business owner will be able to operate the terminal for several years after the lease period.

Purchasing a refurbished HypercomT7P at reduced cost would be an option for a business owner who has limited cash. These used machines have a shorter life span, but may fulfill the short-term need for a terminal. For the business owner who prefers to pay cash in full rather than monthly payments over four years, this would be an option.

In conclusion, there are options to purchasing a credit card terminal when the budget is tight. If the business owner fails to act, he may miss out on sales.

Reference

Central Payment Corporation, (2008), Your partner for sucesss, Retrieve4d April 22, 2008 from http://www.centralpaymentcorp.com