Credit Card Processing Equipment: What Does Your Company Need?

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Author: Zabel1

Signing up for a merchant account is a great way to grow your company and increase your customer base at the same time. But in addition to creating and establishing a merchant account, you’ll also need to consider the type of credit card processing equipment your company will need in order to conduct business in every venue possible. If your business deals strictly in retail sales, your credit card processing equipment needs will be much different than those of a business that deals primarily in Internet or phone sales. Much of the “equipment” required today involves software used for processing credit card information in a virtual environment, by Internet or phone.

Luckily, your merchant account provider should be able to provide you with valuable assistance in determining the type of credit card processing equipment that’s right for your business. But to help guide you through the selection process and to help you understand the many different credit card processing equipment options that are available to businesses today, the following list can provide you with a brief overview of some of the most popular credit card processing equipment being offered.

Swipe terminals. Best used for brick-and-mortar retail establishments, these terminals are used when the credit card is present during a transaction. Cards are “swiped” through a special slot on the terminal, which reads the encrypted information on the card and transmits it to the credit card processor for verification and processing. Swipe terminals are associated with the lowest risk of credit card fraud, and so are the least expensive of all of the retail card processing equipment options. Although some swipe terminals work via cell phones, most require a physical phone line in order to transmit data to and from the credit card processor. In addition to processing credit card transactions, these terminals can also be sued for debit and ATM transactions, as well as gift and loyalty card processing. Some cards can also be used for automatic check authorization. The purchase price for these terminals usually ranges from a few hundred dollars to more than a thousand dollars per terminal, and depends on the features included with the terminal.

Virtual terminal. Unlike a physical terminal used in retail businesses, a virtual terminal is a software-based application that is ideal for businesses accepting small volumes of orders over the phone or by the Internet. Virtual terminals still require human intervention in reviewing and, in the case of phone orders, entering card data, and in most cases, they allow merchants and customers to see instantly if transactions have been approved or denied. A virtual terminal is usually offered by your merchant account provider, or by a company recommended by your merchant account provider. The cost of a virtual terminal varies widely among merchant account providers, and involves a monthly fee in addition to the regular account fees.

Interactive Voice Response Systems. Also called IVR, this is another software-based solution, meaning no physical terminal is involved. This type of software is ideal for businesses offering sales through retail establishments, as well as via internet, mail order, telephone and wireless sources. Employing voice recognition software as well as touch-tone payment systems, IVR allows customers to pay for goods and services using their land line or cell phone.

Gateway or weblink. This is actually a service which may or may not require additional software, depending upon the merchant account provider you use and the gateway provider you select. In many cases, your gateway services are included in the cost of your merchant account services. A gateway or weblink is a service that allows credit card information to be securely transmitted, authorized, and processed by the credit card company. In some cases, the gateway provider may also tally up your daily receipts and transmit funds earned through credit card transactions directly to your business bank account.

The gateway provider allows for automatic processing of all credit card transactions, and may also facilitate the use of gift cards and debit cards for purchases. No human intervention is required when using a gateway provider to process credit card orders. However, most gateway providers also offer a virtual terminal option that allows mail order and telephone order companies, as well as some Internet companies, to process orders manually and directly oversee the transaction process. A gateway service is ideal for any business relying on sales through online, mail order, telephone and mobile sources.

This is only a partial list of the credit card processing equipment available to today’s business owners. Your merchant account provider can provide you with a much more extensive list, and may even be able to suggest ways to incorporate additional equipment to help your business grow and reach new customers. By taking your time to consider both your company’s current state as well as its potential future growth opportunities, you can ensure that the equipment you choose will continue to meet the needs of your business for many years to come.

Karen Zabel is a freelance writer who writes about Credit Card .