what are the benefit of having a wireless credit card machine?
Jul 18, 2009
in
Credit Card Machines
I just started a small business and im not sure how is going to do. so i want to go with a wirelss credit card machine. any suggestions?
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5 comments
brettmansdorf on July 18, 2009 at 2:37 pm
First, there are only two wireless networks in the US… GPRS and TDMA. GPRS is provided by Cingular (AT&T) and T-Mobile, while TDMA is provided by Sprint, Verizon, and Alltel. In almost every case – with a wireless credit card machine (Lipman Nurit, Verifone, or Hypercom), the service is provided by Cingular and Sprint. There are also several cell phone based solutions – which reduce costs as they do not have a fixed monthly fee associated with the terminal’s access to the wireless network.
Things to consider…
First is coverage – if your are opting for a wireless credit card machine – you need to understand that the wireless networks have improved drastically, but the coverage is NOT 100% - regardless of what their marketing firms claim. In fact – GPRS is know for better in building penetration, while TDMA is know for better coverage. However – I have both types in the form of wireless internet cards – and their coverage tend to migrate towards urban areas, and even there, they are not always the most relaiable.
Second is cost – My company (and many more) offer these units free of charge for your use (you do not get to keep the terminal in any case), but there is monthly costs associated with the service which relate specifically to the ‘wireless’ function. Access fees, statement fees, and transaction charges account for approx $25-30 per month additional for the wireless, plus a $.05 per transaction fee.
Third – and most importantly – how do you do business that requires a dedicated wireless terminal? If you have or can have internet access (wifi) in the places you do business, you can often accept through a PC or laptop on either a browser based solution or a Java/PC resident program. If you happen to have a data plan on your cell phone and can link to a laptop (direct plug / Bluetooth / etc…), you can again accomplish the same. You can also facilitate the processing through the use of certain cellular telephones with add-on magstripe readers or printers. Knowing exactly how you do business – and what your are selling, allows for a much more detailed solution list.
Finally – many will tell you of a function know as store and forward – this is where the machine will store the transaction (card info and transaction’s data) when it doesn’t have a signal, and holds them until it does… This is a function that is expected to be removed or terminated by the PCI rules (PCI is a collaborative group between all the card issuers who set standards for compliance with card holder data security – remember the TJMaxx fiasco and all the fraud associated). They currently forbid the storage of such data – they just have not proceeded to implement fines and rules associated with store and forward – but its only a matter of months… And those fines start in the thousands and go up from there.
All in all wireless credit card terminals are a great product – if they fit your style and area of doing business – and your business necessitate the need for swipe rates for financial reasons (the cost between a swiped transaction and a keyed transaction must be significant enough to justify the additional cost of the wireless).
Hope this helps.
Cheta K. on July 18, 2009 at 2:37 pm
it’s probably a lot faster meaning it would save on time and maybe money too
Keirsten B on July 18, 2009 at 2:37 pm
do it then
smart E on July 18, 2009 at 2:37 pm
I have a friend in New Mexico who sells Native American Pottery. She sells it right out of the back of her pick-up and the only way she can accept credit cards is with her cell modem credit card machine.
Ethan W on July 18, 2009 at 2:37 pm
There are many different ways to use a "wireless credit card machine" If you have a laptop computer and a broadband access card, you can use that as a wireless credit card machine.