Credit Card Readers

Guide to Credit Card Readers

Being able to accept credit cards can help boost your business
By Wendy Davis

If your business wants to accept credit cards, you'll need a credit card reader — either a machine or software that can handle the purchase. Being able to accept credit cards allows customers more payment options, and helps you tap into a broader pool of customers who may live outside of your geographic region.

Traditional terminals attach to a computer, often via a USB port, and include a magnetic stripe reader, a keypad and display. Wireless terminals are mobile, which might be necessary for certain businesspeople, such as exterminators, locksmiths, trade show exhibitors or traveling salesmen.

When choosing a credit card reader:

1. Decide whether you want to rent a machine or invest in buying. Most fixed terminals are relatively inexpensive, so it might make sense to simply purchase one.
2. Ask your merchant account vendor whether the company also sells or leases credit card readers.
3. Consider whether you need special features, like the ability to accept debit cards and gift cards.

Action Steps

The best contacts and resources to help you get it done

Fixed terminals These terminals are best if you'll be making sales from a brick-and-mortar location. Consider features like size of display, ease of use and price. You'll also need a printer for sales slips and receipts. Printers can either be attached to the unit or sold separately. Basic terminals cost between $150 and $300, while terminals with printers cost up to $600.

I recommend:  For quotes on fixed terminals and printers, try BarCodesInc and NexTag. EBay offers quotes on used credit card readers.

Accept cards on the road To accept credit cards on the road, you'll need a wireless terminal. These cost more than fixed terminals, but offer the flexibility to accept payment from customers who don't have large amounts of cash on them. Wireless terminals come with built-in printers, and tend to be more expensive — up to $1,000. You can buy one from a merchant account provider.

I recommend:  Visit Yahoo Small Business for a list of some merchant account providers. You also can get quotes on new and secondhand wireless terminals at shopping sites like Froogle.

Software for phone and Internet sales If you just do business online or over the phone, you don't need a terminal. Instead, you can use software that allows you to type in a credit card number and get an authorization. Your merchant account provider can offer software that reads credit cards as part of a package. Or you can purchase software for credit card processing, often as part of a suite of services.

I recommend:  Microsoft offers a package that includes credit card processing.

Tips & Tactics

Helpful advice for making the most of this Guide

• Consider factors like display lighting, size of keypad and how easy the printer is to use.
• Buy a terminal with sufficient memory that can hold transactions even if you can't connect when the consumer is present.
• Determine whether the vendor will also offer training on how to use the machine.