How do credit card processing machines work?

3 comments

1. 

   Cate on June 28, 2009 at 7:10 pm

   Either one is fine. Best thing to do is shop around on what rates you can get first! Accepting cc can be costly and companies charge diff rates for diff ways you will be using them. Ex would be if the majority of your cards will be swiped vs manually punched in. Some companies will give you a discounted rate if you enter in the street address, zip and v code from the back of the card.

   Cc companies have several diff fees associated with using them. A flat fee for each purchase ran thru….this is usually 2-3.5% of the transaction total. Then some companies charge a monthly statement fee……I know Discover charged us $5 a month even if we didn't take any cards that month. Also, some companies have a year end statement that is generated and they will charge extra for that.

   You can buy a machine pretty much anywhere and can find used ones on the market. Be sure and check on the paper costs, the swiping machine and the name plate, and carbon receipts to use with them.

   If my memory recalls correctly, by the end of all the transactions and fees and such, it cost us about 4.2% of each sale. Which is alot if you do large volumes. BUT, you do get your money right away.

   We paid $400 for a used machine. You can expect to pay $500-$1000 for a new one.

2. 

   Tim on June 28, 2009 at 7:10 pm

   You can check with your bank, but they are more expensive in many situations. Be very careful with leasing a machine. I see customers all the time signing a lease for say $40 a month for 48 month. That is $1920 for a machine that should only be a $300 dollars.

   Our company offers credit card processing and credit card equipment. Check out our website http://www.godatawest.com, I'd be glad to help you out.

3. 

   siva on June 28, 2009 at 7:10 pm

   getting through your bank is tough.this company gives credit card processing machine,debit card processing machine at low cost