Avoid Free Credit Card Machine Scams

There are plenty of “generous” companies willing to hand out free credit card machines to business owners. Actually, it was only a matter of time before free offers migrated into the processing equipment industry. For years processing companies have been stuck in leasing equipment for small monthly payments as it’s main marketing strategy. However, as soon as processing equipment costs lowered, the door of opportunity opened wide. So, just like free cell phones became popular, credit card processing equipment did the same.  Unfortunately, some people still don’t understand that there no profit minded companies that give away anything for free. Take note, free credit card machines are not truly free.

So, where does this credit card processing money come from to pay for a free credit card machine? The biggest and most popular credit card processing myth being told today is, the discount swiped rate is all you have to pay. This is absolutely false. First of all, the discount swiped rate isn’t a discount for a business owner. It’s not a savings. Secondly, the entire discount rate is really made up of three parts – the qualified, mid-qualified and the non-qualified rate – shown as percentages. These rates represent the levels of risk. 

The first, and lowest rate charged is the qualified rate. It is the rate charged for swiped transactions. Where the credit card is physically swiped through the machine for payment. The next fee that can be added to the same sale is the Mid Qualified fee. Its the next fee, which increases the transaction fee, when the card card number is typed, in order to process the transaction. Lastly, the Non Qualified fee can potentially be added to the transaction. This occurs when, for example, a rewards card or corporate card are presented for payment. This fee can also be charged when a typed in transaction is handled properly. For example, when asked for the customers zip code where they receive their statement is skipped, this will likely result in the Non Qualified fee being charged. 

While, the amounts these three fees can vary from one merchant provider to the next, one thing remains true. The bulk of fees needed to pay for free credit card machine offers occur in the Mid Qualified and Non Qualified fees. In fact, I’ve read merchant statements proving that many business owners were charged the Non Qualified fee 100% of the time, for every credit card sale. How does this happen? Simple, take away the Address Verification Service option from a merchant who keys in every sale. AVS by the way, is the service which prompts the user to enter the zip code where the statements are mailed for the credit card presented as payment. The credit card company wants to match up what the customer says, to what the credit card company has on record, in order to reduce the risk of fraud. If they can’t match it up, that sale becomes a higher risk sale and the business owner pays more for that transaction. 

“But I’m A Loyal Customer Of My Bank”

Ever heard that before? I’m sure every bank President loves loyalty. I’ve never met a banker who doesn’t love their customers, have you? 

I haven’t gone one week over the years, when I’ve not talked to a business owner who says to me, “I don’t care about lowering my fees. I’m a loyal bank customer and just want to stay with my bank, even if their fees are higher.”  Wow! Is what I’m thinking.  Yes, I’m blown away each time I hear business owners, that are suppose to be in business to make money, convincing themselves that loyalty puts more food on the table – when they are the one’s paying for the service. When the money comes out of your pocket, there is no profit being generated.  

Loyalty doesn’t pay your bills. Loyalty doesn’t pay your mortgage. Loyalty doesn’t make you any wealthier. Loyalty, only in the minds of your customer makes you money. 

So, for anyone who is willing to listen. Don’t accept a free credit card machine, unless it’s from a friend or family member who isn’t going to sign up for a merchant services account. Don’t do it!

If, you get what I’m sharing here and want to do business with one of America’s most knowledgeable credit card processing professionals, call toll free at .

Get smart. Buy wholesale not retail. Remember, you are the business owner. 

Call me today.

Credit Machines has over 20 years of business experience. His expertise is in reviewing merchant statements and identifying profit on behalf of business owners. Visit his website today at http://www.creditmachines.com

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