Set Up a Merchant Account with a Wireless Credit Card Terminal

When you are ready to accept credit cards with your business through a wireless credit card terminal, the first thing you need to do is make sure you have a merchant account. When you have a wireless credit card terminal, you will be able to accept credit cards for your business anywhere and everywhere that has a cell phone connection. The possibilities are endless when you use a wireless credit card terminal, but there are things to keep in mind as you got through the process of getting one and setting up a merchant account.

One of the first things you should keep in mind is there are at least two generations, so to speak, of wireless terminals. Though they are not labeled “generation 1” or “generation 2”, technology has gotten a lot better over the years and when these terminals were first released, they were CDPD type technology. This type of technology is almost extinct, but many retailers will try to sell these terminals to you for a nice discount. Don’t buy one, no matter how much money you save. In fact, the AT&T network, which is one of the cell phone networks that sends and receives this information, has stopped using CDPD, so you could have a difficult time finding coverage. You should be able to ask for a coverage map or information before making your purchase.

Setting up your merchant account with a wireless credit card terminal can be quite easy, but you will have many options. You can choose to go through a local bank, but many small businesses will be denied an account, as this is just too much of a risk for them. The other two options is to go with a third party processor or with an independent credit card processing company. Most small businesses will go with an independent credit card payment processor as they usually will offer package deals, for instance you can get the wireless credit card terminal and the merchant account from the same company. This is really nothing more than convenience. You can certainly get your terminal and account from two different companies if you want.

The final things you should focus on are costs and fees. You will have to buy or lease your wireless credit card terminal and in addition pay monthly for different merchant account fees. Buying a wireless terminal, usually at a minimum will set you back about $800. You should plan for closer to $1000. It is understandable that this can be a huge amount of money to a small business, so you may be tempted to lease. Leasing, in the long run, will cost you $5000 or more for the same terminal that you can buy for $800-$1000. Unless you are only using the wireless terminal for a short time, such as a weeklong visit to a tradeshow, always buy them. You can find deals if you buy used or perhaps buy one from eBay. The fees for these terminals are usually fairly consistent with other types of terminals, and in some cases, are even cheaper.