Merchant Account Services

Archive for the 'Credit Card Terminals' Category

Avoid Proprietary Credit Card Machines

Monday, May 15th, 2023

So think all credit card machines are alike? Of course not! There are many obvious differences and many that are not so obvious. But you knew that because it works that way with many things: cars, appliances, etc.

So what do you need to be looking for? Well, that’s an article all by itself, but one thing to keep in mind is something never brought up by sales agents and merchants rarely think to ask. “Can this terminal be used with another processor”? Credit card machines may seem simple as they all generally require the same three things:

  1. Some way to connect to the processor (telephone line, Internet connection, wireless signal)
  2. Electricity (Either a power cord or battery)
  3. A merchant account

But it goes much deeper then that. Unlike cars or appliances which generally work no matter what gas station you use or brand of detergent you buy, credit card machines don’t necessary work with every merchant account. Some credit card machines only work with a select few, or even more ominously, only one merchant account provider.

In the case of the terminals that work with only a select few providers, this is due to most processing banks just not offering support for the credit card terminal. In the merchant account world things work a little bit backwards. Instead of their being demand for a piece of equipment first and the manufacturers filling that demand, the manufacturers create the equipment first and then hope their is demand for their product. They have to hope all of the credit card processors will certify their equipment to be used with their services. If they don’t, that processor’s merchants just can’t use that credit card machine. In some case a few processors will certify the machine (typically the smaller processors) but the other processors (the major players) won’t.

In the case of the credit card machines that work with only one processor, the cause is less reason is a little more frightening for merchants. These credit card machines are designed and manufactured with the sole purpose of only working with one processor. This is done at the processor’s request. They do not want their equipment to work with any other processor.

So why are these credit card machines bad? Because if your business chooses to use one of these machines, you will essentially be locking yourself into that processor. If you chose to leave their services you will be forced to buy a new credit card machine to use with your new processor. So if you are unhappy with your current processor’s rates, even if you find a lower rate elsewhere, it could take you months or years to save enough money with your new lower rates to cover the cost of that new terminal. Unless you are extremely unsatisfied with your current processor it is unwise from a business point of view to leave your current processor.

The sad part about this is the sales agents who sell proprietary equipment know what they are doing. They just don’t tell you.

Verifone Acquires Lipman

Monday, April 10th, 2023

From Verifone CEO Doug Bergeron:

VeriFone Holdings, Inc. on Monday, April 10, announced a definitive agreement to acquire Lipman, the Rosh Haayin, Israel-based provider of electronic payment systems. We are very excited with this acquisition and the opportunities it presents. Customers of both companies will benefit from a stronger, more reliable, more innovative and better connected company that will deliver the VeriFone Difference in ways not possible prior to the acquisition.

As we move into this new era, I want to assure you that the continuity of your business is first and foremost and we are fully committed to supporting and aggressively growing the Vx Solutions, Nurit and Omni product lines going forward. In fact, with a dramatically expanded product portfolio, customers can now seamlessly experience the VeriFone Difference with:

* Unmatched portable solutions encompassing CDMA, GPRS, Wi-Fi and Bluetooth wireless technologies that open up new market opportunities and bring electronic payments directly to the consumer wherever they may be.
* A full range of highly secure consumer-facing devices that promote the usage of online debit and enhance merchant-to-consumer messaging and promotion.
* A full range of dial, IP-based, single or multi-application countertop systems that are easy to sell and provide numerous merchant benefits that drive up-selling opportunities.
* A secure family of payments-enabled Electronic Cash Register systems that open up new possibilities for convergence of retail management and payments for small merchants.
* A full range of secure self-service, kiosk and ATM solutions that will allow you to capitalize on the growing trend for electronic payment acceptance in unattended environments.

In addition, customers of both companies can expect enhanced support, service, responsiveness and innovative thinking from the combination of the best, brightest and most experienced personnel from two of the leading companies in our industry.

VeriFone and Lipman are the fastest growing among the leading providers of point of sale electronic payment technologies and this acquisition will extend VeriFone’s leadership in many countries around the globe. Geographically the two companies are complementary, and will be the number one player in North America and Emerging Markets and number one or two in most key markets worldwide. Following the acquisition, VeriFone will become the largest global provider of electronic payment solutions and services. This scale will allow VeriFone to capitalize on the accelerating growth in the emerging markets, as well as demand for increased security, and IP-based and wireless payment systems both domestically and abroad.

We are working quickly to finalize the composition of our larger sales force and support infrastructure going forward, but you should continue to rely on your existing relationships. Any changes or transitions will be communicated to you well in advance.

Closing is expected to occur in VeriFone’s fiscal fourth quarter ending October 31, 2023 .