What You Need to Know About Point-of-Sale Terminals?

If you are a small business owner planning to set up aenterprise goes belly-up? Perhaps the only way to
merchant account, you will be using Point-of-saleanswer this is to point out that your business will no
(POS) terminals-that is, debit card (Interac) and creditdoubt have many assets it will have to dispose of if it
card machines. There are several things you shouldfails, and that risk is a fundamental unchanging fact of
know about POS terminals that can help minimize yourentrepreneurship. Any smart business owner plans
costs of doing business and can maximize therealistically for the future, but maintaining an optimistic,
efficiency of your day-to-day business operations.can-do attitude is also essential for success. People
First, is it more in your interests to rent aintuitively sense the value of owning assets: would you
terminal-usually from a bank-or to buy one outright?choose not to buy a house if you could simply
The financial benefits of ownership are considerable.because you feared the fluctuations of the housing
Aside from providing your business with a tangiblemarket over time?
asset, ownership will save you a lot of money in theAnother important thing to consider: owning your POS
long run. If you can afford the up-front cash, a POSterminal gives you far more flexibility in choosing-and
terminal may set you back somewhere in the area ofchanging, if need be-your merchant account provider. If
$1000. Renting from a bank, which typically chargesyou are renting from a bank, you are also stuck with
between $30-$50 a month, will end up costing youthem as your provider, and if you are dissatisfied with
possibly double that amount within four or five years. Aincreasing rates or poor service you will have to return
compromise would be to lease-to-own from a privateyour POS terminal and overhaul your system. Most
company, which would still cost more money thancompanies that supply POS terminals will allow you to
buying the machine outright.choose your provider, and switching providers is a
It is worthwhile to ask whether it is worth investing in arelatively simple process in this case.
POS terminal, given the rapid pace of technologicalRenting a POS terminal does give you the peace of
change one would expect from this type of machinery.mind of knowing it will be replaced at no cost to you if
However, change in payment processing technologyit needs replacing. However, companies that provide
and methods has been-and will likely continue toPOS terminals for sale will typically provide some kind
be-hampered by regulations in place to protectof warranty. Be sure to ask what kind of warranty it is
consumers from credit card fraud. It is reasonably safeand what it costs you, if anything. A lifetime all-inclusive
to say that debit and credit card processingwarranty may be built into the purchase price of the
technology will move at a slow enoughmachine. Also remember to ask if the machine is
pace-compared to, say, personal computers orcompatible with Smart-card technology, which will be
high-definition televisions-to merit the investment in aimplemented in the next few years.
POS terminal. Such an investment will be usable forThe last thing to consider is the type of machine. Do
many years, maybe decades.you want a simple dial-up system (which operates
Many people starting out a small business are nervousthrough a regular phone line) or one with a high-speed
thinking about such long-term considerations. Will myInternet connection? The answer to this depends on
little shop even be around in four or five years' time?the volume of customers you expect, and the speed
you may be asking yourself. Do I want to be stuckwith which you will need to process their transactions.
with another expensive asset to unload if my