A prospective retail merchant called me earlier in the week to ask me whether it was worth it to purchase a pin pad so that she could facilitate debit card processing.  This blog entry is dedicated to her. 

With the economy the way it is at the moment, a lot of people are wary about going into debt, or going deeper into debt.  Consequently, many people have cut up their credit cards or have hidden them away for the time being, and prefer to pay with cash.

However, you can still technically pay for items and services by cash without having to actually carry the money around with you. The simplest way is to pay by a debit card. A debit card is just as easy to use as a credit card as it can be swiped through a terminal, but the funds are taken directly out of your bank account instead of being added up on a monthly statement.

This way you can’t get carried away on a shopping spree and pay for things you can’t afford, as you need enough money in the account to cover the bill. I guess the simplest way to describe a debit card would be by calling it a plastic check, but without the aggravation of actually having to write one out. In fact, debit card processing is becoming the fastest growing method customers are using to pay for orders.

Debit cards are a lot more convenient than carrying around cash or checks and are also secure as a PIN number is needed to use the card to pay for a transaction. If you happen to lose a $100 bill, you’re out of luck, but if you misplace your debit card, it can easily be replaced and can’t be used without the proper PIN number. In addition, statements are itemized with the location and time of the debit card transaction.  Check cards are also available from companies such as Visa and MasterCard and they are similar to debit cards, but you don’t have to use a PIN number with them.

Because so many shoppers are using debit cards to pay for purchases, it goes without saying that businesses should be equipped to handle debit card processing. By accepting debit cards with a PIN pad, you can also save quite a bit of money on processing costs.. 

If you process debit/check cards as a regular credit card transaction you may end up paying twice the amount for processing. If you use a PIN pad for debit card processing, you only pay a per-transaction-fee and no discount rate of any kind.

But you need to make sure your customers input their PIN number during the transaction, if not, the per-transaction and discount rate will be charged for people using check cards who don’t enter their PIN numbers. Since entering a PIN number with a check card is optional for shoppers, it’s a good idea to encourage them to do so.  

If you run your business over the Internet, you typically have to pay the same fees for debit card processing as you do with credit card processing.  (Some merchant account providers provide a discount for the online use of debit cards.)  However, you can also save money by using an electronic checks system for your website sales.

Because the costs are so low using the debit card processing method using a PIN pad, (usually 50-95 cents) per transaction, you can save a substantial amount of money per order.

There are also several other benefits to using debit card processing, including the following: 1) There are no charge backs; 2) You have the option to offer cash-back to customers; 3) Your revenues will increase; 4) Sales are deposited into your account quickly; 5) All transactions appear on your statements; and 6) There’s no risk of accepting a bad check.

While it’s easy to see that using a PIN pad will save you money in debit card processing, you need to decide whether to use an internal or external pad. An internal pad is ideal if you want an all-in-one unit and it will also save you space. With an external PIN pad, it’s usually easier for the customer to access and enter their number on a hand held unit and there’s less strain put on electrical cables.

If you’d like to make money and save money at the same time, set up a system where you can accept pin-based debit cards.  The only caveat is if your average ticket is less than about $20-30.  In that scenario, the average credit card processing rate should be less than the flat debit card processing rate.

Retail merchants with higher tickets would be pennywise to employ debit card processing.

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.               

Many merchants who are selling products and services while on the road are equipped to handle cash transactions only as they don’t have the phone lines and electrical outlets needed for credit and debit card sales. However, if you’d like to do your business electronically and conduct credit and debit card sales while you’re mobile or in a temporary location, there’s a simple solution for you: the Nurit 8000.

The Nurit 8000 wireless terminal is ideal for merchants who are always on the move and who conduct their business from locations that don’t have the necessary phone and electrical capabilities. This portable POS terminal allows you to conduct credit and debit card transactions from just about anyplace at anytime as its wireless modem accesses the AT&T GPRS cellular wireless network. 

The Nurit 8000 terminal can complete a transaction as fast as two to five seconds and is Payment Card Industry PIN Entry Device (PCI PED) approved so it meets the latest standards set for security and fraud protection. If for some reason you’re conducting business in an area with no or limited wireless cellular coverage, the terminal has a store-and-forward feature which lets you upload the transaction later. 

With a built-in PIN pad, the mobile Nurit 8000 terminal accepts PIN and signature debit cards, credit cards (including American Express, Discover and Diners Club) and checks.  It also allows for gift and loyalty card transactions.

The terminal processes your sales transactions via a wireless connection that has dial backup. The unit has a high-quality backlit keyboard and large LCD on it which makes it simple to read in all lighting conditions. The device also comes with a built-in rechargeable and replaceable lithium ion battery that lasts for about 12 hours at a time. 

If this compact and lightweight hand-sized device sounds like it’s the answer for your business needs, then you’ll be glad to know that the Nurit 8020 has since been released, which is the updated version of the 8000 model. It’s basically the same as the 8000, but has a new sleek design, making it even easier to carry around and use.

The Nurit 8020 offers an easy and quick way of completing transactions when you’re away from the office. The unit has 18 programmable keys, a dual-track bidirectional magnetic card reader, and comes with a built-in, high-speed graphical thermal printer which allows your customers to sign for the sale and have their receipts printed instantly.

The terminal also comes with enough memory to support several applications simultaneously and has a large removable memory card for extra data storage. It’s also a very secure system to use as the internal PIN pad and advanced encryption features protect you against credit and debit card fraud.

If you’re looking for a small, flexible, handheld payment terminal to take with you when out in the field conducting business, the Nurit 8020 is one of the best deals around as you pay the lower swiped rate instead of the higher keyed rate. And because you can complete the sale immediately with the card reader, you don’t have to worry about accepting bad cards.

It’s a great little state of the art unit for all types of businesses such as limousines and taxis, mobile vendors, delivery people, stadium and arena sales, tradeshows, tow trucks, plumbers, and electricians etc. The terminal is also usable with external landline modems. 

Several merchant account providers are offering the Nurit 8020 at no initial charge.  (Ask about conditions that pertain to any "free terminal.") Any mobile merchant with 2020 business vision can now obtain the affordable, durable, and useful Nurit 8020.