What Determines the Price of a Credit Card Machine?

What Determines the Price of a Credit Card Machine?
Choosing a new credit card machine can be confusing - especially when it comes to paying. Our guide explains what you’re paying for when purchasing a new credit card machine.
by Alise Bailey Oct 18, 2018 — 3 min read
What Determines the Price of a Credit Card Machine?

Taking payments is important to keep your business running smoothly. But when it comes to paying for the systems you use to take credit cards, things can get expensive — and confusing. Credit card machine prices vary from $200 to well over $1,000, but there are often additional fees that contribute to how much you pay to use them.

Associated fees for credit card machines

Beyond hardware costs, credit card processing fees are likely to factor into the credit card machine price. Fees you might have to pay to process credit cards include:

Hardware costs

The amount you pay for your actual credit card machine is often dependent on its functionality. Credit card processing companies may charge you more for hardware that can process EMV chip cards, accept NFC payments (like Apple Pay and Google Pay), print receipts, or process over Wi-Fi and Ethernet.

Security costs

You may be charged fees to ensure your business is PCI compliant and protected from chargebacks. Those fees can range in size.

Transaction fees

Each time you tap, dip, or swipe a card, you’re charged a transaction fee, also known as a processing rate. You may be charged additional fees related to the transaction, like batch or interchange fees.

Learn more about how Square payment processing fees work.

Ways a business owner can save on their credit card machine

There are ways to purchase a credit card machine that don’t cost an arm and a leg. Here are some methods to save money before you make a purchase.

Do your research: Before you sign on the dotted line, know exactly what you’re paying for. Understanding what you’re signing up for ensures you won’t be responsible for costly charges in the future. The FTC provides helpful guidelines on things to be aware of when purchasing a new credit card machine.

Read contracts carefully: Credit card processing contracts can be difficult to read, and contracts may result in expensive fees if you attempt to cancel. Be aware of contract nuances and cancellation fees before you sign, and fully educate yourself on the commitment you’re making when you purchase a new credit card machine.

Reduce your chances of fraud: Purchase a credit card machine that is PCI compliant and is certified to accept EMV payments. This is twofold: You will avoid charges from failing to be compliant, and you will protect your and your customers’ personal and payment information. Without PCI compliance and EMV functionality, you are putting yourself at risk.

If you’re on the hunt for a new credit card machine and want a simple, straightforward way to process cards, check out Square Terminal.

Square Terminal is optimized for easy, professional, and reliable payments that treat you and your money fairly — with no long-term contracts, hidden fees, or confusing hardware agreements.

With Square Terminal you’ll pay one low, transparent, fair transaction rate of 2.6% + 10¢ for every dip, tap, or swipe payment, and $299 for the device. You’ll also have 24/7 phone support and next-business-day hardware replacement. Best of all, our data security protects you, and we manage payment disputes so you don’t have to.

Interested in Square Terminal? Order now.

Alise Bailey
Alise Bailey is an editor at Square, where she writes about how to start, run, and grow a business, highlighting our sellers around the world.


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