While it is true in life that you don’t often get something for nothing, it is also true that it pays to shop around. Free credit card machines are not in fact “free,” but may be provided at no additional charge with the purchase of merchant account services. While some credit card processing companies sell you the equipment for a steep price, others front it to you with the idea that they will earn the money back over a short time, after initially acquiring your business. When shopping for a merchant account, free credit card machines are commonly offered as a way to attract you as a loyal customer. However, there may be advantages and disadvantages to this type of promotion.
First of all, credit card machines can be expensive, retailing for up to several hundred dollars a piece. Obtaining high quality units at no charge can be a great deal. It can save your company money and help you avoid some of the large up front costs of starting a business.
However, in order to process credit cards, you must have a service agreement with a merchant account provider. Discount fees, transaction fees, and any number of additional merchant account fees apply to these services, and range greatly depending on your sales volume, number of transactions, products being sold, and the merchant account provider you choose for your business. Sometimes, merchant account providers who offer free credit card machines, compensate for that discount by charging higher fees for your card processing services.
For this reason, it is important to shop around and read the fine print. There are a large number of merchant account providers available with varying rates. Be sure to not only look at the processing fees, but also any other fees they assess for chargebacks, monthly billing statements, technical support, set up, applications, manual card processing, security features, and more. Also, some merchant account services will charge a minimum fee, if you do not reach a certain sales volume, or an over the limit fee, if you sell more than what was anticipated.
While free credit card machines sound like an enticing way to save money, there are other considerations to be made before signing a service agreement with a merchant account provider. For example, used credit card machines can be purchased to save money, and allow you to choose your merchant account provider based on their low fees. Also, many companies are switching to virtual credit card machines and processing cards online for a more economical approach. Regardless of which route you choose, be sure that you have efficiently researched your best available options.
Merchant Warehouse is one of the few merchant account providers that offer a new, top-of-the-line credit card machine absolutely FREE with their merchant accounts. They offer their customers a NEW Hypercom T7Plus credit card machine, with no hidden fees, contracts, or cancellation fees.