How Much Does a Credit Card Machine Cost?

Different Businesses Demand Different Machines 

There are really three types of credit card processing machines when it comes to carrying out in-person transactions. Determining which credit card reader is right for you is crucial.

For a small business such as a barber shop that is only processing a payment every 15 to 30 minutes, a card reader that requires a connection to a smartphone could potentially be enough. However, for a liquor store that is processing dozens of transactions during a busy weekend rush, a fast machine compatible with Apple and Android Pay probably makes much more sense.

Furthermore, what you need to start your business might not be the same as what you need as you expand and grow. Hence, there are a variety of different types of credit card machines to suit different companies’ needs and compatibility with payment processors and POS systems.

Here are the three main types of credit card terminals:

1. Credit Card Readers

The cheapest type of credit card processor on the market is called a credit card reader. These readers require connection via an app to a smartphone or tablet to function and are best for new small businesses with small inventories, few transactions, and mobile operations. While they are cheaper and more convenient, they come with a slower, less seamless transaction experience, and lack features such as touchscreen, contactless (NFC) payments, and enhanced security.

2. Credit Card Terminals 

These countertop terminals can be wired or wireless and perform the function of processing payments. They vary greatly in price, size, and features such as touchscreen, built-in printer, QR code scanning, contactless payments, signature capture, and more.

3. All-in-One Credit Card Machines 

Finally, there are credit card processing machines that are built into POS systems. These often feature EMV credit card readers that are built into the actual POS hardware terminals.

Many such built-in terminals have non-negotiable credit card processing and subscription fees that come as part of the contract with the POS/merchant service provider. These fees are often higher than what you would find if you independently shopped around for the best available transaction rates through a third-party provider.

Built-In POS vs Agnostic Processing

To be sure, POS systems with built-in credit card machines, such as Square or Clover, are a great option for companies such as mom-and-pop stores and food trucks. Such a system is all that’s needed for simple operations with fewer transactions and small retail spaces. However, if you use Square, for instance, then you use Square’s processing. These processing fees can add up to substantial amounts by the end of the year, especially for higher-volume retailers.

Other point-of-sale systems are credit card agnostic, meaning that they will work with any credit card processor. This ability to shop on the open market gives business owners the opportunity to negotiate and drive down the final price, potentially saving a company thousands of dollars throughout the course of the year.

Payment Processors

When choosing your credit card machine you should first consider which payment processor (also known as a “merchant services provider”) you will be using to facilitate transactions. Like most services, different providers come with different pricing and different pricing structures.

These companies also have specific credit card machines with which they are compatible. Therefore, it makes the most sense to first compare different credit card processing companies’ fees and then assess what features and support these companies offer when choosing your actual machine.

Different Types of Credit Card Processing Fees

It’s essential to out for these processing fees when choosing a payment processor. Ask questions to find out if and when you will be responsible for these charges.

Transactional

These transaction rates are set by credit card companies, issuing banks, and payment processors and gateways, and they vary depending on multiple factors. Risk is one of these factors; for instance, debit cards with pin entry cost less per transaction while purchases made as “card not present” cost more per transaction. There are a whole host of factors that go into the final cost per swipe rate.

Batch Fees

Batching is when the credit card authorizations of a particular business day are finalized and submitted to the payment processor. Some card processors charge fees for each batch. It’s worth finding out if your processor charges them and what amount they are. Typically, these are avoidable.

Software Fees

In order for your credit card machine to function properly with your POS, your payment processing company might also charge a monthly software fee. If so, ask the company to explain what you’re paying for and how it helps your business.

As for machines, here are some that we recommend:

     DejaVoo QD4 – $250 – $450

• Built In NFC Contactless Reader
• Quad-Core @ 1.1GHz
• Ethernet, WiFi, USB
• 50 ft. paper roll

     DejaVoo Z11 – $250 – $450

• Built In EMV and NFC Contactless – EMV 4.x L1 and L2 certified
• Tri-Comm capability (Dial, IP & WiFi)
• Touch Screen Signature
• 2.4’’ Color LCD Screen with backlight
• 192 MB of Memory
• NFC Reader
• SPIn integration
• 32bits 400MHz high-speed microprocessor

     Cayan Genius $300 – $1000

• Online payment gateway
• Near-field communication (NFC)
• EMV Payment Processing
• P2PE Validated PCI
• HSA and FSA Card Compatible

     Pax S300 – $150 – $300

• • • EMV®, MSR, and NFC/Contactless
    • EMV & PCI Compliant
    • Large Memory Capacity
    • User-friendly Interface with Powerful GUI
    • Color Touchscreen
    • Signature Capture
    • USB and LAN connectivity options

Features of Credit Card Machines 

Familiarizing yourself with credit card technology features and safety standards is a must. Assure that your business is equipped to function optimally and securely now and in the future as your business grows.

PCI Compliance

This is a must for all merchants when choosing their credit card machines. Payment Card Industry Data Security Standard (shortened to PCI DSS, and often just PCI) assures that your credit card machine is following all of the safety protocols to ensure that your transactions are protected from fraud and data breaches. All major credit cards require PCI compliance and failure to comply with regulations can result in major penalties.

EMV Chips Readers

These are the small square metallic chips on credit and debit cards that are “dipped” into credit card machines. The EMV chip functions in a similar way as the magnetic strip, relaying information about your credit card account to the payment processor. However, the EMV chip differs in that it creates a single unique code for each transaction that helps prevent fraud. While EMV readers can cost more money upfront, they generally save the merchant in the long run through reduced processing fees and fraudulent transaction penalties.

NFC and Contactless 

Some of the tech features that are available now, such as Apple Pay and Google Pay, allow customers to use their smartphone or credit card to simply hover over a credit card processor to complete transactions. This “near-field communication” technology is growing steadily as the preferred choice since it offers a no-touch solution that is fast and easy.  Since more retail experts expect consumers to use more and more of these types of payments in the future, it pays to buy a machine that offers NFC capabilities now.

Rely on smart and updated restaurant POS software and the right people to manage your business operations smoothly while you prepare for the next steps of your business.

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