Many credit card machines can be reprogrammed to work with different processors.
Some credit card machines can be reprogrammed to work with virtually any credit card processing service, while other machines will only work with a specific processor. Older credit card machines that don't have the proper hardware and memory to support modern programs may not work with any processors at all.
Even if a credit card machine can be reprogrammed, it is a good idea to avoid reprogramming older machines that no longer conform to current PCI DSS.
- Universal Credit Card Machines
- Proprietary Credit Card Machines
- Platform Compatibility
- Machine Age and Hardware
- PCI DSS Compliance
- How Machines are Reprogrammed
- Reprogramming Fees & Charges
Universal Credit Card Machines
Most credit card machines are manufactured for the open market allowing any credit card processor that is willing to build a program that will allow the machine to function on its platform. These credit card machines afford a business the flexibility to move from one processor to another simply by having the new processor reprogram its existing machine.
This flexibility makes universal credit card machines the preferred and most cost-effective option when compared to proprietary machines.
Machines that are manufactured by Verifone, Lipman / Nurit (acquired by Verifone in 2006) and Hypercom (acquired by Verifone in 2006) are excellent examples of open market credit card machines.
Proprietary Credit Card Machines
Proprietary credit card machines are manufactured to work only with one specific processor. A business that purchases a proprietary credit card machine will be forced to purchase another machine if and when it decides to switch processors.
For this reason, we recommend avoiding proprietary machines and we strongly discourage processors from offering proprietary machines within the CardFellow marketplace. If a processor does place a quote that has a proprietary machine, we require the processor to make this fact know in the quote details.
First Data is the largest distributor of proprietary credit card machines with its line FD machines. FD machines will only work on First Data's processing platform.
Platform Compatibility
Even credit card machines that are manufactured for the open market can have limitations. Before a credit card machine can be programmed by a processor, the processor must first have software available that allows the machine to communicate with its network.
Creating this software costs money, and if a machine does not have a large enough market share a processor may not be able to justify the cost of creating the software to support it. So, even though a machine may be capable of being reprogrammed by any processor, not all processors will support every open-market machine.
Machines made by Ingenico are a good example of open-market machines that many processors haven't bothered to support.
Machine Age and Hardware
Technology in the processing industry is changing rapidly, and older credit card machines may not have the hardware to support modern programming and features. Even if an older machine is capable of being reprogrammed, the benefits that new machines offer may make the old machine obsolete.
For example, an older dial-up machine that connects via a phone line requires about twenty seconds to process a typical swiped transaction. Newer IP machines that connect via the internet are capable of processing the same type of transaction in just two seconds.
For fast-paced businesses such as restaurants and busy retail store, saving eighteen seconds on each transaction is well worth the cost of purchasing a new machine.
Insufficient memory is another limiting factor of older credit card machines. Generally, machines with less than one megabyte of memory cannot handle the size of most modern day programs.
For example, a Hypercom T7Plus with only 512k of memory will likely be incompatible, while a Hypercom T7Plus with one megabyte of memory can be reprogrammed by virtually any processor.
PCI DSS Compliance
Many older machines are not capable of supporting modern day security requirements mandated by PCI DSS (payment card industry data security standard). While it is possible for processors to reprogram these machines, we strongly recommend that a business purchase a newer PCI-compliant machine whenever possible.
Even though they are capable, some processors have stopped reprogramming non-compliant machines even though specific regulations do not (yet) exist that prohibit the practice.
Older Verifone Tranz and Verifone Omni machines are examples of machines that are no longer PCI-compliant, and while some processors will reprogram these machines, many will not.
How Machines are Reprogrammed
Most standard dial-up and IP credit card machines can be reprogrammed over the phone in a matter of minutes. Wireless credit card machines and other more sophisticated pieces of equipment may need to be physically shipped to a processor for reprogramming.
Reprogramming Fees & Charges
Other than the time spent by an agent or staff member, processors do not incur a cost to reprogram a credit card machine. A fee charged by a processor to reprogram existing equipment is generally pure profit for the processor, or is kept as a bonus or additional commission by the agent that sources the merchant account.
Businesses should negotiate to have reprogramming fees waived, as truly competitive processors will not attempt to charge such fees in the first place. For example, not once has a processor charged a reprogramming fee on a quote placed through CardFellow.
