Finance Credit

The Truth About Free Credit Card Terminals

February 5th, 2010 |

Author: admin

I get asked if we offer a free credit card processing terminal program all the time so I’d like to expose the “real deal” behind these programs should you be considering one:

The old adage “You can’t get something for nothing” was never more applicable than with so- called “free terminal” programs. In this instance, “free” actually means no upfront costs.

What many processors often do is provide a with a terminal at no upfront cost but then charge other fees instead, such as an annual fee, a monthly minimum fee or a termination fee.

In my opinion free credit card terminal providers are doing serious injustice to merchants as they aren’t even matching the merchant with the right solution for their business. For example, many merchants are in need of an online credit card processing solution but instead of being directed to an internet payment gateway or virtual terminal solution they are instead offered the free credit card processing equipment to accept credit cards simply because it is more profitable to the service provider.

Also, you never technically own the equipment. Rather, it’s yours to use only for as long as you maintain your processing relationship with that company. In fact, the terminal is programmed in a manner that prohibits you from taking it to another service provider.

Should you decide to cancel your account; the agreement will usually specify that you return the equipment in the same condition as it was received. Of course, the definition of “same condition” is subjective, and returning equipment in flawless condition after it’s been in continual use is often impossible. The penalty for violation of this provision is usually between $595 and $795, which hardly makes it free!

The bottom line is that the excessive hidden fees and penalties free providers levy make the costs of these programs far higher than meets the eye.

I just don’t see how these types of practices form a foundation for building a lasting partnership as the underlying hidden expense far outweighs the perceived value.

So when it comes to getting “free credit card terminals & equipment” if it looks too good to be true it – It is!