Many merchant service companies offer so-called “FREE” credit card terminals mislead merchants to believe that the equipment is free. In fact, the equipment is NOT FREE. Merchants who use merchant service company which provide the “FREE” terminal would pay more for the “FREE” terminal through higher processing costs and pay a penalty when the terminal is returned.
The “FREE” terminal is in fact loaned to the merchant by the merchant service company for the duration of the contract. The terminal must be returned upon the cancellation of service. Often, business owners do not return the equipment thinking it is truly free and get big shock when receive a collection notice in the mail or worse yet, on their credit report. Even when the equipment is returned, merchant service companies will find excuses, such as not receiving the terminal or receiving damaged equipment, and then force business owners to pay penalties many times the original cost of the terminal.
In order to use the loaned terminal, business owner must sign 2 contracts. One contract is for credit card processing service with many hidden fees and a high early contract termination penalty, and the second contract is for the use of loaned terminal. Business owners should contact the registered merchant service company which they plan to do business with directly to ask about service contracts in detail. Salespeople who represent these companies are usually not willing to give the merchant full details about the true cost of accepting “Free” credit terminals. These merchant services companies know that small business owners will not fight these unfair charges out of fear of damage to their credit rating or just do not know how to fight back and simply pay the penalty and move on.
The cost of credit card terminals are so low now that it is best to purchase it outright and look for merchant service companies who have no cancellation penalty. Such no cancellation penalty must be in writing. The best way to ensure high quality service and no surprises in hidden fees is to have the ability to take the business to other service provider.
Nationwide Merchant Services do offer free use of terminal program. However, the program requires service agreement with cancellation fees and higher processing rates then the posted rates.
Please call 800-889-8765 to inquire about the program.