In 2023, statistics have shown that over 30% of purchases are made by consumers using credit cards, and 90% of Americans have a debit card. Small businesses can accept credit and debit cards as payment using a credit card machine.
This can be very advantageous because it gives customers the option to pay with the card of their choice and gives businesses a way to receive payments quickly.
We researched for you because there are many credit cards available and it can be difficult to know which one is best for your company.
So this article brings to you information on credit card machines and top credit cards for businesses in 2023.
What is a Credit Card Machine Called?
A credit card machine or card machine processes and completes a transaction, such as a sale or withdrawal, by reading credit and debit cards.
To accept payment or provide cash funds, card machines are a type of hardware with integrated technology that enables it to gather the necessary data from a payment card.
Furthermore, any type of device that accepts credit or debit cards can be referred to as a card machine, but the term typically refers to terminals needed for transactions involving card payments.
How Does a Credit Card Machine Work?
Customers who wish to pay with a credit card or debit card can do so using credit card machines. To send information to the processor, they are typically connected to the internet or a phone line.
The majority of credit card processors transfer money from the client’s bank to the company’s merchant account.
In some circumstances, the credit card processor uses a merchant account to hold funds on your behalf before, at your option, depositing them directly into your checking account.
Types of Credit Card Machines
There are various types of credit card machines, with their advantages:
#1. Countertop terminal credit card machine
Countertop terminals are over-the-counter or tabletop machines that can process both credit and debit cards, and support card-not-present transactions.
The following are some advantages of using this kind of terminal:
- Countertop credit card readers are less susceptible to data theft because they are hardwired.
- Card-not-present transactions can be used when a credit card’s chip or magnetic stripe is damaged.
Countertop terminals are best for brick-and-mortar stores, with prices ranging from $100 to $350.
#2. Mobile terminal credit card machine
Mobile terminals rely on Wi-Fi, a phone, or a tablet to process card payments while in motion. This suggests that they can be moved from the checkout counter to other areas of the store or taken to events.
The following are some benefits of mobile terminal use:
- The mobile terminal increases the profitability of your business because it is portable by nature.
- Its sleek design enables portability and is lighter than countertop terminals.
Mobile terminals are best for businesses that are mobile and/or participate in events, high-demand businesses, and house calls.
#3. Virtual terminal credit card machine
With the help of these terminals, your online store can accept credit and debit cards by entering the necessary data on a secure website. The presence of a client’s card is not necessary to complete this kind of transaction.
The following are a few advantages of using virtual terminals:
- With this kind of system, you can operate your business virtually and still accept credit cards.
- No credit card processing is needed for complete mobility, so there are no additional fees attached.
- Processors may charge lower fees for B2B transactions due to the lower fraud risk.
Virtual terminals charge higher subscription fees than in-person due to fraud.
#4. POS credit card machines
These terminals link a POS system to card processing equipment. A POS system and a card processing system can cooperate thanks to their setups.
Integrated POS terminals have the following advantages:
- With POS, payment is integrated, and the right purchase amount is processed automatically. Thus, this system minimizes human error while accelerating checkout.
- Purchases are easier to track and analyze through a POS.
Can I Buy My Own Card Machine?
Yes, you can buy your own credit card or machine.
The fact that the device is yours once you have paid for it is one of the main benefits. In addition to payment transactions, there are no ongoing fees.
So You are not required to repair or replace the device if it has minor wear and tear-related scratches or dents as long as it is still functional and usable.
How to Get a Credit Card Machine for Business?
As a business owner, you might require a credit card machine in several different circumstances. You might desire an electronic terminal’s convenience or the extra services that a brand-new credit card machine can only provide.
Maybe you’re looking for a cheap replacement, a second terminal, or a merchant services machine.
Whatever the case, all you need to do to get a credit card machine is understand your company’s needs and know where to go to order one.
#1. Talk to your sales rep:
Tell your sales representative or merchant services account representative why you require a credit card machine.
Ask for a recommendation from the manager of the financial institution where you bank if you don’t already process credit cards.
Then Examine rival businesses by getting in touch with neighborhood financial institutions, and then contrast merchant processing costs and rates.
#2. What type of credit card machine do you need:
Talk over the phone or in person with your sales representative about your unique business needs.
Ask about optional services like PIN debit, check to process, and gift card processing, as well as various non-proprietary credit card terminals.
For instance, if you own a bar or grocery store, let the representative know whether you prefer servers to use wireless machines at the tables or a cash wrap to handle transactions.
Finally, discuss the terms of the equipment warranty and replacement as well.
#3. Follow the legal procedure:
Request copies of any agreements you will need to sign to obtain a machine, any equipment information, the purchase, lease, or rental pricing you discussed, as well as any applicable shipping costs.
Once you have the information, carefully go over it, ideally with a lawyer, to choose the kind of machine you want and make sure you didn’t miss anything.
#4. Complete your order:
To order a credit card reader, get in touch with your sales representative and complete the order.
Contact your merchant services provider to activate the machine after you wait for it to arrive or a representative to bring it to your place of business.
Furthermore, Request a demonstration of how the processor operates from the on-site salesperson or the processor’s help desk.
How Much Does a Credit Card Machine Cost?
Depending on what features you need and where you buy them, credit card machines can cost anywhere between $200 and $1,000.
At the most basic level, you can get a magnetic strip, display screen, keypad, and chip card capabilities. You shouldn’t spend more than a few hundred dollars on credit card hardware if you only intend to offer basic services.
The hardware you require is frequently determined by the quantity and nature of your transactional requirements.
When you include features like a built-in printer, wireless capabilities, etc., prices increase significantly.
If you do not wish to purchase an expensive, higher-end type of credit card machine, there are some businesses (like Tidal Commerce) that use all-in-one smart terminals to find more affordable solutions.
These are typically portable, have a built-in printer, and have a sleek, contemporary feel.
How Much Does a Credit Card Machine Cost Per Month?
The cost of a credit card machine doesn’t stop at the hardware. There are fees, always. It is the main source of income for processors. Transactional, flat, and incidental fees make up the bulk of the fees.
Transactional Credit Card Machine Fees
This fee is charged each time a credit card is swiped, as would be expected. Companies typically offer two different pricing models:
- Simplified pricing: These are prices based on a percentage of transaction value and a flat rate,
- Interchange pricing: These are prices on monthly transaction revenue and interchange fees.
#1. Flat fees
Flat rates are frequently percent-based and include a fee for each transaction.
Depending on the processor, the rates typically range from 2% to 4% per transaction, while the per-transaction fees can be anywhere between $0.00 and $0.50.
#2. Batch fees
This is the cost associated with batching your transactions, so to learn more about the various fees connected to your merchant account and current terminal, contact your payment processor.
Additionally, while most processors charge between $0.10 and $0.50 per batch, some may charge as much as $1 per batch.
#3. Software fees
Most businesses use some form of app integration and software that is more specialized to their niche, but many terminals run a straightforward POS system. So when estimating your costs, consider the software fees.
Depending on the type of POS system you have, there are different software fees; typically, the software fee is included in a support contract.
How to use a Credit Card Machine
The highly portable devices typically come with a mobile app that is Bluetooth-connected. You can track your income because all sales you accept are reflected in the mobile app, where your account is connected to the card reader.
Card machines should accept credit and debit cards for payment via the following processes:
- Chip and PIN: Chip and PIN cards allow customers to insert their credit cards into the machine and make payments with a four-digit PIN.
- Contactless: In many parts of Europe, the swipe-and-sign method has quickly fallen out of use because it is difficult to authenticate and leads to higher levels of fraud.
- Swipe and sign: They are popular because they speed up a transaction. The majority of contactless payments, however, have a limit on the total sale amount.
Best Credit Card Machines for Businesses in 2023
You have a wide range of options when selecting a credit card machine for your company. To make it simpler, we have reviewed the leading service providers in the sector and selected the top options.
- eHopper
- Clover
- Toast
- ShopKeep by Lightspeed
- PayPal Zettle
- Stripe POS
- Square
- BAR MANAGEMENT IDEAS: 5 Great Ways to Improve Your Bar Business
- Financial Capital: Overview, Sources, Examples, Types (+free tips)
- ATM MACHINES: Cost, What to Know When to & After Buying One
- WORKING TOGETHER: Complete Guide to Becoming a Team Player & Free Tips
- WHAT’S ACH: What You Need to Know.
References:
