Processing requires hardware and other fixed assets.  The typical small merchant may have only a terminal attached to a register/accounting system.  These terminals are designed to read card magnetic stripes and authorize and settle transactions.  These terminals can be designed to communicate via an analog or dial-up phone line or via Internet protocol.  Small merchants often lease or rent terminals or buy them outright.  Communications costs can be as low as that price of a single dedicated phone line for the smallest merchants or considerably more if dedicated lines or wireless or satellite transmissions are utilized.

Larger merchants have substantially more sophisticated and investment-intensive systems.  These retailers will often have a host-based system which resides in the back-office or a central location.  The host system aggregates, records, and transmits transactions from point-of-sale systems.  Merchants such as gas stations may also use technology such as pay-at-the-pump systems and satellite based communications.  There is also a cost associated with the software and outsourced services of Internet or telephone transaction capabilities. 

1. Ten Most Popular POS Terminals

1. Eclipse terminal                        
2. Hypercom T7 Plus terminal                  
3. LinkPoint AIO terminal            
4. Lipman Nurit 8000 terminal                 
5. VeriFone Omni 3750 terminal  
6. BankPoint II PIN pad                          
7. VeriFone 1000 SE PIN pad                
8. Hypercom S9 PIN pad            
9. VeriFone printer 900                           
10. MagTek check reader 

Sources:  First Annapolis Consulting analysis, The Acquiring Industry Basic Training 101, ETA sponsored presentation, Transaction Trends magazine, January 2006.

Merchant Account Articles

For new merchant accounts:
Tips on setting up your online Merchant account
Choosing an online payment gateway
Website requirements for an internet merchant account
Merchant Account Checklist
Tips on setting up a wireless Merchant
Tips for setting up a retail merchant account
Tips for setting up a phone or mail order merchant account

Getting the most out of your merchant account:
The Mechanics of Credit Card Transactions
What is Interchange and Assessments?
Assessing Charge Back Risk
Technology, Communication, and the Industry’s top equipment
Credit card terminals or software?
Merchant Account phone tips
Process Debit cards
Credit Card Processing at Ensight Merchant Services
Ensight Merchant Services Low Cost Guarantee on Credit Card
Ensight Merchant Services vs. Local Banks
How Phone Processing Works
How Retail Processing Works
How Wireless Processing Works
Credit Card Processing for Mac Users

Glossary of Terms