What About the FREE Credit Card Machine Deal?

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What About the FREE Credit Card Machine Deal?

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?

Free Credit Card MachinesOften 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.

Free Credit Card Terminals SuppliesIf 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.

Free Merchant Accounts Los Angeles

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


19 Comments

Tweets that mention Free Credit Card Machines | Los Angeles | Free Merchant Accounts | 1st National Processing — Topsy.com

June 27, 2010 at 3:26 am

[…] This post was mentioned on Twitter by Tobias Patterson, B.J. Kharrazi. B.J. Kharrazi said: New post: The TRUTH About FREE Credit Card Machines? (http://bit.ly/d1psZh) […]

Saul King

February 18, 2011 at 12:43 pm

What about Tooth Fairy!?

Cheap Yankee

February 23, 2011 at 8:35 pm

But what about the Easter Bunny? LOL!

Arizona Charlie

March 7, 2011 at 3:39 pm

We got a free machine and thought it was a good deal until we got educated… now we just want out!

Canada Roberta

March 10, 2011 at 5:29 am

Good explanation of free machines, thanks!

Tanka Jill

March 10, 2011 at 8:23 pm

Kudos. TY.

Freita Wallace

March 11, 2011 at 8:36 am

Until I read your expos’e I thought the free machine deal was legitimate. Thanks!

Dr. Bronx Billy

March 24, 2011 at 11:31 am

Our bariatric clinic learned the hard way. No more free credit card machines for us! LOL

Strategic Alliances Man

March 24, 2011 at 3:05 pm

Free Credit Card Machine offers are mostly a scam everywhere, we’ve looked carefully.

han zügler

April 16, 2011 at 9:00 am

Free credit card machines in los angeles usually are not a good deal.

QuickBooks Accounting Bookkeeping

April 20, 2011 at 6:50 am

In Los Angeles, Free Credit Card Machines is a joke! Thanks for setting the record straight!

Patty P.

May 5, 2011 at 8:39 am

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[…]…

Zen Zone

May 10, 2011 at 6:55 am

The free credit card processing terminal offers are a joke. They exist only in the ether of consciousness.

Auto Repair Guy

May 11, 2011 at 1:27 am

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.

Credit Card Processing Guy

July 13, 2011 at 6:29 pm

Wonderful communique about the dangers of so-called free credit card processing machines.

Water Filtration Guy

July 19, 2011 at 7:59 am

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.

Porsche Repair Guy

August 30, 2011 at 5:13 am

Watch out for the free credit card machine scam in Long Beach also!

Denver Decorative Concrete Guy

September 4, 2011 at 11:13 pm

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.

Long Beach Merchant Services Pro

September 20, 2011 at 10:59 am

In Long Beach – Truly a better way to process merchant payments!

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All of our suppliers must be: available, accurate, and offer good value to our corporation. We now are 32 locations strong and are expanding rapidly every other month. Our credit and debit card services has been with 1st National Processing for 4 1/2 years now. We are very satisfied with the professionalism of the staff and their comprehensive customer service.

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