Sunday, June 27th, 2010 | 1 comment | B.J. Kharrazi
No longer are the days when credit card terminals cost a lot to purchase or lease. Many seemingly legitimate merchant service processors hawk free credit card machines. The Internet is thoroughly spammed with FREE CREDIT CARD PROCESSING TERMINAL come-ons.
Are free credit card machine offers legit and worth it?
Often they are NOT. Many unsuspecting merchants are falling prey to ‘aggressive’ merchant service agents. There is no such thing as a free lunch, or a free $500 wireless credit card machine, it would appear.
So what’s the catch with the free credit card machine offers?
Simple – no merchant account, no free credit card machine. But even more germane, it’s “free,” but you don’t own it, and it actually costs you more. Sounds like a riddle, yes?
If you partake of the worst of these offers, and then subsequently stop processing cards, or you want to switch merchant account providers, you will have to return the terminal before the provider will close your merchant account. If you don’t return the terminal the merchant account will remain open and monthly fees will continue to be charged -and/or- significant termination fees will be incurred.
If the machine isn’t mine, who pays to fix it if it breaks?
Be sure to read the fine print in any free credit card machine offer before signing any agreements.
If the machine is free, does that mean supplies are too?
For most businesses, processing equipment and supplies aren’t very expensive anyway. Time spent looking for merchant account agents offering free supplies or machines is time better spent looking for a provider with terrific rates, attentive customer service, and other real values. You know, like us 
So how and why do they do it?
Understand the “how” and the “why” will be obvious. They do it by only disclosing a portion of the fees and commitments applicable to the credit card processing account. The novice eye will see a low up-front set-up fee, a seemingly competitive qualified discount rate and transaction fee, and a fairly average monthly service fee. What is missed, or otherwise not understood clearly, is the longer term commitment and early termination fees, higher monthly minimum requirements, higher mid qualified and non qualified fees, and even additional wireless transaction fees when applicable.
The Truth -
The truth is that a credit card processing account with this type of set-up will generate up to several times the profit of a standard account. The merchant will actually pay for the terminal several times over yet never own the machine, and likely be stuck with termination fees when he or she wises up and attempts to move to a better processor.
So, now that we’ve pulled away the veil and explained it to you, if you still insist on getting a free credit card processing terminal or supplies, we would love to talk to you, if only to attempt to talk you out of it.
- BJ Kharazzi / editor
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One Response to “What About the FREE Credit Card Machine Deal?”
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What about Tooth Fairy!?
But what about the Easter Bunny? LOL!
We got a free machine and thought it was a good deal until we got educated… now we just want out!
Good explanation of free machines, thanks!
Kudos. TY.
Until I read your expos’e I thought the free machine deal was legitimate. Thanks!
Our bariatric clinic learned the hard way. No more free credit card machines for us! LOL
Free Credit Card Machine offers are mostly a scam everywhere, we’ve looked carefully.
Free credit card machines in los angeles usually are not a good deal.
In Los Angeles, Free Credit Card Machines is a joke! Thanks for setting the record straight!
The Los Angeles “Free Credit Card Machine” schpeel has run its course. I m very happy with my 1st National Plan! Thanks BJ!
[...]the time to read or visit the content or sites we have linked to below the[...]…
The free credit card processing terminal offers are a joke. They exist only in the ether of consciousness.
There are a number of free credit card machine deals and free merchant account terminal plans in Los Angeles worth investigating, but most of them are rip offs.
Wonderful communique about the dangers of so-called free credit card processing machines.
Sweet blog! I found it while searching on Yahoo News. Free credit card machines in Los Angeles are all the rage, but its typically a ripoff.
Watch out for the free credit card machine scam in Long Beach also!
The free credit card machine scam isn’t just limited to Los Angeles and Long Beach – I got taken with the free processing terminal scam in Denver CO.
In Long Beach – Truly a better way to process merchant payments!
Free credit card machines would be great in Denver CO also!
Free credit card processing terminals would be welcome in Las Vegas NV!
A REAL free credit card machine terminal deal in Las Vegas would be welcome. Operative word being, “REAL.” LOL
Is there a good free credit card terminal program in Las Vegas?