Is it time for a new credit card machine?

But even if your machine still works, there are other factors to consider, including security, modern payment methods, and customer experience. In this article, I’ll go over key considerations to help you weigh the timing for upgrading your processing equipment.

Obvious Signs That It’s Time for a New Credit Card Machine

Of course, the most obvious signs that it’s time for a new credit card machine are any that indicate the system is failing. This includes:

Slow transaction processing.
These days, it should only take a few seconds for a machine to approve a credit card transaction. If it seems like you’re standing there with your customer at the register for 20-30 seconds (or more!) your machine might be nearing the end of its life.

However, one caveat, slow machines can also be due to older landline connections or slow internet speeds. Consider trying your machine with faster options to see if it’s really the machine or if it’s the connection.

Regular error messages.

It should go without saying that if you’re regularly experiencing error messages or crashes that require restarting your machine, it’s time for a new one. These errors and delays can cause frustration for your customers and staff or potentially lead to missed sales. If your system is down for more than a few minutes, customers may go elsewhere, especially as many don’t carry cash or alternate forms of payment anymore.

Lack of modern security features.

If your machine is older and doesn’t support security features like tokenization and encryption, you could be vulnerable. Data breaches are expensive and damaging to your reputation, so it’s important to use systems that have the latest security.

Other Reasons to Upgrade your Credit Card Machine

If your machine isn’t slow or regularly crashing, there may still be reasons you want to upgrade your machine. Such as:

Accepting newer payment methods.

Older machines don’t necessarily have ways to accept all the latest payment methods, such as “tapping” a card or using Apple Pay. If your customers prefer contactless payments or you just want the convenience and security of the latest payment methods, upgrading your machine is an easy way to stay current.

This is particularly true if your machine is old enough that it doesn’t support EMV “chip” cards. At this point, you’ll likely get hit with higher fees if you’re still swiping cards. If you don’t have an EMV capable terminal, it’s a good idea to upgrade now.

Your business has grown and you need more features.

This is particularly true for businesses that have evolved beyond just a countertop credit card machine and could benefit from the features of a full-fledged POS system. If you started off with a countertop machine but find yourself looking for integrated inventory tracking, customer management tools, or advanced reporting, it could be time to switch from your basic countertop device to a full POS system.

It also applies to businesses that started out using smartphone card readers but now want the functionality of a countertop machine.

Benefits of Upgrading

The benefits of upgrading your credit card machine depend on why you’re switching, but can include improved customer experience for processing times, better security for peace of mind and easier PCI compliance, or smarter business operations through POS systems with advanced reporting and management tools.

Costs for New Credit Card Machines and POS Systems

The costs for a new credit card machine vary wildly, depending on where you purchase the system, the features included, and other factors. A basic countertop credit card machine that accepts chip cards and includes the latest technology will typically run you a few hundred dollars. Advanced multi-lane systems will cost significantly more.

Full-fledged POS systems have a wide variety of costs, depending again on features and where you buy them, but also on added accessories, such as produce scales, customer-facing displays, integrated cash drawers, UPC scanners, and more. Expect basic systems to start around $1,000, though sometimes processors will have discounts or specials.

Beware of “free” credit card machines, which often come with sneaky higher processing fees.

Even though systems can be expensive, it’s also not a good idea to lease credit card machines, as the leases are often non-cancellable and very expensive.

Choosing a New Credit Card Machine

If you do decide that it’s time to upgrade, you may be wondering how to go about choosing the right credit card machine or POS system.

There are a lot of choices these days, but keeping a few things in mind can help you narrow down the right fit. First, consider what type of equipment you need. If you’re using a countertop credit card machine now, are you simply looking to get a newer model or is it time to upgrade to a full-fledged POS system with more bells and whistles?

Do you expect to switch credit card processors in the future or at least want the option to do so without changing your equipment? If so, you’ll need to choose a “universal” credit card machine, such as a model by Ingenico or Verifone, that can work with many different processors. Some machines are proprietary and only work with one processor, which can limit your ability to negotiate competitive processing fees. This applies to POS systems as well, not just countertop machines. Some models (like Clover) only work with the processor you purchase it from. Others work with multiple processors, making it easy to switch processing companies and continue using your same system if you choose.

It’s also a good idea to look for a machine or POS system with the most methods of card acceptance so that you’re helping to “future-proof” your business from technology shifts. Getting a system that can accept all current payment methods helps ensure that you won’t need to upgrade again soon.

Still not sure? Check out CardFellow’s credit card processing equipment directory for information on different machines, their features, and more.