|
New Businesses
When starting a new business, an essential component is a merchant account. A merchant account accept credit cards from customers who’d like to pay you for products or services. At TCP we’ve put together a pricing model we believe will impress you. However when deciding on which merchant account company to go with there are two things you need think about:
The below chart compares how much money, over a period of 3 years, you will have spent on each option. These are averages we’ve seen in the industry over the past 15 years.
This graph is explaining the cost of equipment over a 36 month period. Most merchants these days have heard it all, from free merchant credit card terminals all the way to expensive leases. From our experience it is always much cheaper to buy the terminal out right at the beginning of your merchant account process but most merchants don’t have the upfront money. Well, in that case the best solution is to get a good lease quote. There are a couple of reasons why that would be a smarter choice than to receive a free terminal or rental and will be explained below.
Cash
Even though this is the toughest option for most merchants because of the cost upfront, it Is always the cheapest over a 36 month period. This allows you the merchant to use this terminal for years after the 36 month period. The best option is to spend a little more money now to get a new higher end model to insure you will be able to use the terminal for 3-5 years after your 36 month period with your processor.
Rent- Rent is a good option for merchants who need a terminal for a short period of time but over a 36 month period you will pay twice as much compared to buying the terminal out right. Most merchants are charged $19.99- $24.99 per month to rent the terminal. The terminal you receive in most cases is a refurbished one and could cause delays during your 36 month period. The one highlight of renting is you can always give it back if anything unfortunate happens to your business during the 36 month period.
Leasing
Most if not all merchants think leasing is a four letter word. Now we understand most merchants don’t want to be locked into a contract for 36 months but there are some advantages to leasing. When you lease a piece of credit card equipment the processor makes some upfront money. This makes the processor more willing to go the extra mile if anything should ever happen to your terminal during the time. I know that sounds wrong but it’s true. When the processor has to spend upfront money to give you equipment they are less likely to spend the extra time to fix something if anything should go wrong. Leasing also guarantees you a nice, working and up to date piece of equipment for the next 36 months. The benefit of leasing over renting is you actually own the equipment after your lease. This means you don’t have to go hunting for another terminal for awhile.
Free
This is a common solution in our industry. Actually most merchants wouldn’t believe us but we as a processor we make a lot more money giving away equipment rather than selling it. When equipment is given away you as a merchant are locked into contract terms with higher rates, higher cancellation fees, poor equipment and just an overall unsatisfactory experience. When you are given equipment you are really at the mercy of the processor and that is why we are against free equipment. You will have a much more pleasurable experience buying the terminal at a low cost and receiving the best rates in the industry at .10 cents a transaction.
TCP Equipment Pricing
Pic of Person at a computer (Representing Internet Merchant Account ) Free Set Up
| Terminals |
| Vx570 $389 |
Vx610 GPRS $649 |
Nurit 8020 GPRS $699 |
Nurit 2085 $169 |
 |
 |
 |
 |
| Pin Pad 1000 $79 |
Vx510LE $299 |
RDM Check Imager $499 |
Magtek Check Reader $199 |
 |
 |
 |
 |
 |
| To find out if you qualify for financing, please click here |
|
