It’s pretty hard to run a business these days without a credit card terminal. In fact, it’s almost impossible. If you’re selling goods and/or services, it’s important that you’re able to process credit and debit cards proficiently and safely.

Credit card terminals don’t cost that much in the grand scheme of things, but are very important when it comes to keeping your business running smoothly.

You need to make sure your equipment is up to date and reading cards properly as merchant account providers generally charge slightly more for keyed-in transactions than for swiped ones.   Remember, any credit card machine can be used with any merchant account as long as it’s programmed to connect to the right provider.    

Here are seven questions to ask as you research myriad credit card terminal offers:

1-What types of terminals are available?

There are a few types on the market. These are traditional models which can come with or without printers, wireless terminals, and virtual or software-based devices. 

A basic model comes with a magnetic stripe reader, keypad for entering prices and other data, and a small display area. The printer can be separate or built into the device and the terminals work the same way with either. However, when combing hardware, you need to make sure all pieces are compatible and work together properly.

There are several types of displays available and naturally, bigger ones can show more information at once. The display areas are typically measured in lines and columns: For example, an 8 x 20 display area means it has eight lines of text that is 20 columns wide.

Credit card machines with backlit displays are ideal for use in all lighting conditions and most models come with these. 

The keypads vary in their number of keys, and the more available, means you can allocate frequently used tasks their own keys. 

Wireless terminals

Wireless machines are ideal for people who conduct transactions while they’re mobile or in temporary locations. They allow you to conduct business without the necessary phone and electrical lines needed for basic models. These units come with built-in printers. When shopping for a wireless tool, be sure to consider its battery life, range, weight, and shock-resistance. 

Virtual terminals

If all of your business transactions are conducted by phone and/or via the Internet, you don’t really need a physical machine. Ask your merchant account provider for a virtual terminal that can process transactions. All you need to do is enter the credit card number and the web-based interface does the rest.  (You can also obtain software that offers credit card processing capability.) 

2-Will my equipment accept debit cards, gift cards and other types of payment cards?

It’s a good idea to get an apparatus that also accepts debit cards. Most do, but you need to let customers enter their personal identification numbers (PIN). Some terminals have this feature built in, where others require a separate pin pad.  When using a separate pin pad, the credit card terminal does not have to move from its location. 

Being able to issue and accept gift cards is a bonus, but not all terminals have the capability. Some models also let you take payment by phone cards, electronic bank transfers (EBT), and paper checks (run through a check reader).

3-Are there any security devices available?

You need to make sure you’re protected against fraud, so an address verification system (AVS) is essential for security. This system compares customers’ ID addresses with their credit card billing addresses. The system is standard on most units and I wouldn’t buy a machine without it.  You should also be able to utilize a CVV2 check (the 3 or 4 digit number indicated on the card) to ensure that customers have their credit card in their possession at the time of sale.

4-What type of printers are there?

You need a reliable built-in or separate printer with the terminal so you can give receipts to customers. There are three types of credit card terminal printers, which are dot matrix (impact), thermal and inkjet. Make sure the one you pick is fast and dependable.

Dot matrix printers employ pins and an ink ribbon to print on regular paper. They generally cost between $200 and $400. However, they can be pretty slow as they print one to four lines per second.

Thermal printers utilize heat and special heat-sensitive paper to produce receipts. They cost a little more, between $300 and $500, but are quicker and quieter as they typically print 10 to 15 lines per second. They’re usually more reliable than dot matrix printers as they possess fewer moving parts.

Inkjet printers are pretty rare with credit card terminals and the only bonus they offer is they can print in a variety of colors. They aren’t very fast and their cost is high. 

While thermal printers and paper may cost more than dot matrix, they usually cost the same in the long run as you have to buy paper and ribbons to run dot matrix printers. 

5-How much does payment processing equipment cost?

Credit card terminals won’t cost you an arm and a leg. Basic models generally sell between $150 and $300. Terminals with printers are usually $200 to $600, and wireless devices are usually between $600 and $1,000.

It’s a good idea to buy a terminal instead of leasing one as it will definitely save you some money.  It’s also a good idea to make sure you get a reliable model that can handle all of your needs even if it costs a little more.

Please note that some merchant account providers offer equipment at no initial expense although conditions may apply.

6-Where can I buy one?

You can easily buy processing contraption from your merchant account provider and they will pre-program the terminal for you. They usually give a decent price as they hope you will be working with them for several years.

If you’d rather buy the machine elsewhere, then be sure to consider the price, manufacturer's warranty, the type of business you do and what your terminal needs are.

If you’re considering buying a machine over the Internet, make sure you are buying from a reputable seller, understand any return policies and restocking fees, along with any warranties and service agreements that come with it.

7-What else should I know?

Make sure the credit card instrument meets all of your business needs. If your device can’t connect to the merchant account provider, the unit’s memory may store transactions for later verification. A model with 256k memory can store about 1000 transactions. 

Make sure you keep the equipment clean as printers and credit card stripe readers can easily get clogged up. A can of compressed air is ideal for cleaning a credit card terminal.

Some models use flash memory to store their operating software. This means system updates can be easily downloaded and installed and can extend the life of the terminal.

Finally, make certain that your selected machine is PCI compliant, conforming to the most up-to-date Visa and Mastercard security standings.  Refurbished machines may be considered (to lower your cost), but again, ensure that any device is PCI compliant.

In summary, by raising the aforementioned questions and discovering the answers, you will be able to obtain the “best” credit card terminal.