Merchant Card Processors: Evaluating Card Processors

To boost revenue, merchants often require equipment for processing debit and credit card payments. This includes retail, contactless, and wireless processors. Nowadays, most purchases, both in and out of stores, are made using cards. To manage these transactions, merchants need card processors.

Types of Card Processors: Pros and Cons

Retail Card Processors

Pros: Ideal for in-store sales, retail card processors work at point-of-sale stations, offering lower transaction fees compared to other types, which means more profit per sale.

Cons: For businesses with fewer, smaller transactions, the costs for setup, equipment, and account maintenance may outweigh the benefits. Additionally, swiping cards can be cumbersome.

Contactless Card Processors

Pros: These terminals can read cards from a few inches away, speeding up transactions and avoiding the need to swipe cards. Users of contactless cards also tend to make more frequent purchases.

Cons: The effectiveness depends on how common contactless cards are in your area. If local banks haven’t widely adopted contactless cards, this technology might be premature for your business.

Wireless Processors

Pros: These processors allow for mobile transactions, suitable for businesses operating in various locations. They’re faster than touchtone processing and have lower fees compared to internet and mail/telephone order transactions.

Cons: The cost of wireless technology is higher than wired systems, and the transaction fees are higher than those for retail processing.

Using a Cell Phone as a Touchtone Processor

Pros: Converts a cell phone into a processor, eliminating the need for additional equipment. Setup fees are low, and it’s flexible for businesses on the move.

Cons: Compared to wireless processing, touchtone has higher fees and slower transaction times. It’s best for businesses with small, infrequent transactions.

AVPS’s Solutions

AVPS offers a range of merchant accounts and processing equipment for accepting payments via debit, credit, and checks. With over 25 years of experience in small business merchant accounts, we can cater to your needs for wireless, retail, contactless, or online processing. Contact us for a free consultation.


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