Purchase vs. Renting Credit Card Machines
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Posted On :
Jun-06-2013
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Article Word Count :
677
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In many industries companies cannot function properly without offering customers access to credit card payment options. Fortunately, acquiring the necessary technology to accept plastic isn't difficult, as there are several options depending on a company's budget and needs.
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In many industries companies cannot function properly without offering customers access to credit card payment options. Fortunately, acquiring the necessary technology to accept plastic isn't difficult, as there are several options depending on a company's budget and needs. Businesses can go all-in, buying a credit card terminal, or rent one for a fee. The choice to purchase or rent a credit card machine will likely be influenced by a few different factors as each provides specific benefits.
Benefits of Credit Card Acceptance
About ten years ago the ability to accept credit cards was restricted to major stores and retail outlets that were of sufficient size to accommodate the cost of such machines. Today, however, it's much easier to rent a credit card machine and the numbers of card purchases have increased dramatically.
Because it's no longer necessary to write checks to pay for things due to the existence of debit cards, most people choose to use those cards whenever they're not using an actual credit card. This means that vendors or companies that accept credit cards are expanding payment options to credit card users and to people who want to debit their bank account.
How Credit Card Machines Work
Today's credit card machines are incredibly simple to operate and require little setup for merchants to use. Thankfully merchants no longer have to scrape the card number onto carbon paper and send off those purchase details to the card company. Today's machines are instant, electronic and provide a much faster way to get paid for purchases.
To provide a merchant with instantaneous payment authorization, the credit card machine reads the magnetic strip on the reverse of a card and translates the information into signals to be sent over the network (sometimes a telephone line) to the card company. After a few seconds, the card company's data center sends information back to the credit card machine with a message of whether the transaction was accepted or declined.
Benefits of Renting
The circumstances in which a company operates often guide the decision of whether to purchase the machine or rent it. Rental fees these days are fairly low and might be as inexpensive as $25 a month. A few advantages are offered through credit card machine rental:
Holidays are easier with card machines
If business increases exponentially during the holiday season, this is the perfect time to rent a credit card machine to allow for faster checkout times and improved customer service. Additionally, companies that operate only seasonally (i.e. farm markets) would benefit from renting a machine.
Renting eliminates upgrades
One of the best things about renting a machine is that it’s use is short term and it will never wear out or become obsolete, necessitating that a business spend money on a new one. When a new and better machine comes along, a company simply has to get a new lease and new equipment with no purchase required.
Benefits of Buying
Renting obviously comes with its own perks, but sometimes buying a credit card machine makes more sense for a company. In these cases, certain purchase benefits might apply:
Machines are affordable
Unlike the credit card machines of the past, a company can buy a credit card machine for a small amount of money, and the fees charged by the credit card companies are negligible. This means that even a small business can purchase a machine. Prices range from about $150 to several hundred dollars.
Equipment purchases are tax deductible
When a company purchases machinery and devices for business operations, some of these expenses may lower taxes. A credit card machine that is owned can be taken off taxes every year through depreciation.
People today want convenience when they make a payment, and whether it’s at a hot dog stand or at the grocery store, everyone wants access to a credit card terminal. Swiping a card is fast and easy, and benefits for merchants and customers are mutual.
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Article Source :
http://www.articleseen.com/Article_Purchase vs. Renting Credit Card Machines_268051.aspx
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Author Resource :
The author has an immense knowledge on rent a credit card machine. Know more about rent a credit card machine related info in his website http://www.truemerchant.com/products-and-services/
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Keywords :
truemerchant.com, rent a credit card machine,
Category :
Finance
:
Finance
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