Frequently Asked Questions (FAQs)
1. What type of connection do I need to have?
There are two main connection types: a dedicated “dial-up” telephone line, or a high speed internet connection (also called Ethernet), which is considerably faster. There are a lot of myths out there about what a business does and does not need. One of those myths is that they must have a telephone line and/or an Ethernet line. The fact is, you can have either, both, or you can even do business without either one.
2. What types of systems are in use today?
There are many types of systems available to most merchants: external terminals (credit card machines), electronic cash registers (ECRs), smart phone processing, POS (point of sale) systems, Web Access Processing, and many more.
External Terminal
An “external terminal” or “credit card machine” is a system that operates solo or can communicate with a register depending on the system in place. The external terminal is about the simplest system in use. An external terminal can also be run with a pin pad as one of its peripheral devices. It’s an easy, straightforward approach that a lot of business owners use and are comfortable with.
Electronic Cash Registers
Next in line, and somewhat more advanced technology, is the Electronic Cash Register system. There has been a lot of movement from business owners going from external terminals to the ECR system. These systems have more capability and can be custom programmed to each business.
Smart Phone Processing
Smart Phone Processing is becoming more popular by the day. The merchant actually uses a smart phone (with the use of a Bluetooth “swipe” device) to perform the transaction. IPhone, Android, and certain other smart phone platforms have the capability to handle this type of processing. The swiping device can even be used with a tablet (such as iPads and other similar devices). Whether using a smart phone or a tablet, all that’s needed to make the device a mobile credit card processing machine is a downloadable app.
Point-of-Sale Systems
Finally, there is what we call “Point of Sale” or “POS” systems. These are the most sophisticated systems currently used in the marketplace. POS systems mostly make use of touch screen technology. With POS, the clerk touches an item displayed on the terminal screen, depending on the item chosen, a new window may open up for various options. For instance, if the system were in use in a fast food restaurant, the clerk might touch “hamburger” on the screen and then a menu of options would appear like what vegetables ,condiments, or whether to add cheese and what type to the hamburger. The clerk could select each of the amenities just by touching the corresponding selections on the screen.
In addition, these systems can be comprised of a single terminal or multiple terminals that are connected via Ethernet connection and are integrated. They communicate with each other constantly, as long as they are powered on. They’re capable of doing numerous functions, such as inventory, bookkeeping, payroll, time clock, reports, etc. However, some functions may require a back office software package on a separate computer.
3. Will I need to sign a contract?
With most purchases, contracts are not needed. With the more sophisticated and complex POS systems, where significant amounts of money and more equipment are involved, contracts may be a necessity.
4. Are leases necessary with credit card processing systems?
No. There are many programs available with a lease option, but it is not mandatory. Be careful though! Some lease programs are set up to be non-cancellable, and you overpay for a machine that may never be owned. At the same time, if the machine is damaged, the contract must still be fulfilled (otherwise you may be charged an exorbitant amount to get out of the contract). Plus, you will need to replace the machine out of your pocket.
The bottom line is to be careful and do your homework. Check your options, and then make the decisions that are right for your business. If we can help you with information on the different types of Credit Card Processing, Electronic Cash Registers, or Point of Sale Systems, please do not hesitate to call. We look at it like this, as one of our clients, if you’re not making money, neither are we.