Are You Getting Full Value from your Credit Card Terminal?

Better, Faster, and Cheaper – Technology has made it possible to provide greater product quality with superior efficiency at lower prices for so many products we use every day. With that in mind, why are so many retail merchants using an outdated or inefficient credit card terminal? Merchant processing technology solutions have advanced over the past few years, such that owners of small and midsize retail businesses have the opportunity to upgrade their terminals, often with a reduction in overall cost. Here are some of the options available, and considerations.

One of the best ways to leverage current credit card terminal hardware is to integrate it into a full point-of-sale (POS) solution. Often by adding a POS solution, business owners can have valuable data with client transaction histories and sales activity integrated together to make marketing much more targeted. Reporting also becomes increasingly streamlined, freeing up time to focus upon other aspects of the business. POS solutions in the past had been priced much higher than a standard credit card terminal, however that gap has closed and often a business owner will find that they are saving thousands of dollars by transitioning from a credit card terminal to a POS system.

Cardholder security tools have also advanced in some of the newer terminals, where business owners may find that their existing credit card terminal is not adequately protecting their customers' information. The severe ramifications of a security breach or compromised terminal can range from legal costs to fines and penalties, even including the possibility of the card associations eliminating a business owners' ability to accept cards at all.

Speed is also a major consideration, which many business owners overlook. When compared apples-to-apples, a savings of one-second may not seem like a lot from one credit card terminal to the next, but with the internet taking over as the primary mover of data, the time savings can be five to ten seconds per transaction. While that doesn't sound like a lot of time, the results are significant in many businesses where line-management is vital such as quick-serve restaurants or retail clothing stores. If legacy processing technology uses telephone lines versus internet connections, merchants should consider if that's the ideal solution for that specific business type – It may be, but there are differences in processing via data wires versus analog phone wires.

It truly comes down to a cost benefit analysis in order to determine if a newer credit card terminal makes sense. Merchants currently renting a terminal to process their electronic transactions should reach out to their current merchant services provider to determine if their technology is the most up to date. If the technology is outdated, the rental should cover a standard upgrade. If the terminal is owned by the merchant, it makes sense to evaluate if there are more appropriate solutions available, and what the cost would be to purchase a newer, faster and more secure solution. Terminals that are currently leased should be retained until the end of the lease term, at which time a more modern solution should be considered.

Ultimately each business owner needs to consider the combination of quality, speed and cost and evaluate how it will impact their consumers relative to efficiency at the point-of-sale, data security and the overall customer service experience that a terminal can support. If an existing terminal meets all of the available security standards, accepts all forms of cards used in the business, and it meets the needs of a business owner, there is no urgency to upgrade to a new terminal just to have the most up to date solution.