Scott Greczkowski said:
I was just offered from my bank a credit card terminal for $20 a month and a 2% processing fee which means I could directly take credit cards.
Do you think its worth me getting one of these units?
I used to work for V/MC/Discover reseller.
There are a few things you need to find out before jumping on this.
Equipment Lease: Some places require up to 48 months and it isn't negotiable. You are locked in. Buying the terminal is always cheaper. Especially if you plan on taking CC for 3-4 years+.
Application Fee: Some are waived. I've seen some up to $149.00
Per Transaction fee: 35¢ or more per transaction on top of the 2%. I'd negotiate for a better rate. I've seen as low as 1.55%. The bank is getting a residual on anything above 1.5%. It is a form of double dipping that few people know about.
Keyed In Fee: Internet/phone transactions where you don't physically have the card to swipe and you have to key in the numbers usually adds another fee.
Monthly minimum: You have to estimate what your monthly minimum is and if you don't make that minimum, you still have to pay a certain fee.
Statement fee: Monthly fee (Used to be an additional $12-20 per mo.) Usually waived if you hit your monthly estimated minimum.
AVS: Address verification. Sometimes included. Sometimes not.
Time to clear bank. Most are deposited within 24-48 hours. Internet transactions used to be held longer to avoid fraud & chargebacks.
Checking account. Tie your CC machine to a non-essential checking account just in case you are faced with a disputed charge. The bank WILL take the money out and hold it until the dispute is resolved.
AMEX and Discover: Can be taken on most all machines but you have to fill out a seperate application for each additional service.
Check Verification: An add-on that allows you to key in checks. Can be done manually or with a check reader. This service is another chunk of money. It doesn't 100% guarrantee the check is good and if it isn't, the collection service may or may not get your money for you.
That is all I can think of at the moment. IMHO you should pass on it. It would be different if you were a store.
Things may have changed in the last 6 years, but they don't tell you everything, so make sure you find out before agreeing to sign up.
