MERCHANT ACCOUNT THAT OFFERS FREE CREDIT CARD PROCESSING EQUIPMENT - READ THIS BEFORE YOU SIGN UP FOR IT

One of the concerns of a merchant who wishes to accept credit card payments is the cost of any hardware or software he or she needs to invest in when signing up for a merchant account. This hardware or software is basically necessary to process the credit card transaction.
For a retail merchant, a point-of-sale terminal is necessary to swipe the credit card or manually key in the credit card details. Printers are also added on in order to print the receipts for customers to sign. Software can be bought for additional cost to enhance record keeping and processing the transactions.

For merchants accepting credit cards over the internet or the telephone, suitable software becomes a necessary credit card processing tool. For online ventures, the software must be compatible to the shopping cart software. Magnetic strip readers and printers can be an add-on for merchants processing credit card transactions over the phone.

Refer to the following websites to understand more about credit card processing equipment:
http://www.merchantcouncil.org/merchant-account-information/credit-card-processing-equipment.php
http://www.100best-merchant-accounts.com/articles/merchant-account-equipment.html

These software and hardware can cost merchants quite a deal. Brand new, sophisticated hardware is known to have cost merchants anywhere between $150 and $1000. Hence, it is no wonder that merchants seem to flock to merchant account offers that promise free credit card processing equipment.

However, is the equipment truly ‘free’? Can merchant account providers afford to provide such expensive equipment for free? Why would they be willing to give up the profits they’ll make on the equipment?

Free equipment – An investment for the provider

Of course, the merchant account provider will only provide the free equipment if you sign up with them for a merchant account. So if you wondering why the providers would actually give up the profits on the equipment, the answer is simply that the free equipment is viewed upon as an investment. The providers are looking to make more from you in the long run by doing business with you. 

Furthermore, the market is so competitive with the number of merchant account providers increasing almost by the day. Offering free credit card processing equipment gives the provider an edge over the competitors.

Beware of contracts

Although, many merchant account providers may be sincere in their promise of free equipment, they are those who use it to bind you contractually. To be eligible for the free equipment, you may have to sign a contract with them that stipulates a period of time that you should stay with the provider.

Never sign up for such merchant accounts. Why would any company that provide good service and support need to bind you contractually? You might be better off with another provider who would be willing to earn your business on a daily basis. Don’t be lured by free equipment offers that are nothing short of baits to trap you. You must have the freedom to switch to another provider if you are dissatisfied.

Beware of hidden costs

There are also providers who claim to offer you ‘free’ equipment but actually make you pay for them through other hidden costs or arbitrarily added-on costs that are not mentioned outright. Read through the contract conscientiously. Ask questions about anything that you are not sure about and be fussy if need be. Don’t fall for such offers.

Beware of old or out-dated equipment

There have also been cases of merchant account providers giving away used or out-dated equipment for free. You will have to request to check or find out more about the equipment. If the provider doesn’t allow that, you know something is wrong.

Merchant account with free credit card processing equipment is worth signing up for if it is genuine

Let us look at a list of thing to do before you can decide if the offer of free equipment is legitimate:

• First find out if the merchant account provider offering free equipment if reliable and has good referrals from current and ex-clients. Compare the solutions, policy on fraud and chargebacks, terms, rates and customer support offered by the provider to select the best merchant account suitable for your business needs.
• Next read through the contract to ensure there’s no contract to bind you to their services for any period of time.
• Also be sure that there are no hidden costs.
• Check that the equipment is up-to-date and of good quality.

If you ensure the above, then you know you have probably found yourself a genuine free equipment offer. You can then proceed to sign up for it. It’ll definitely help you save costs especially if you just starting your business.

You may wish to refer to yet another article on free credit card processing equipment at http://ezinearticles.com/?Free-Credit-Card-Machines-and-the-Fine-Print&id=1786852