Posts filed under 'Credit Card Equipment'
Originally First Data released an initial price of the new FD-100 terminal to be around $200.
Sadly, I learned a few days ago that this was a completely incorrect initial statement. The actual price of the FD-100 is most likely going to be in the $400 - $500 price range.
To me this is quite a lot of money for a terminal that can only be used on FDMS processing platforms. Yes, the terminal does have a ton of features, but some like USB ports aren’t able to be used by the majority of peripherals. The original $200 tag was low enough that it made the terminal worth the cost despite the drawback of being proprietary. I imagine that the $500 version is going to be much more difficult to push into the marketplace, when terminals like the Omni 3750, Hypercom T4100 and a few Nurit terminals have the same features, at a lower price, and they can be used with any processor.
The original FD100 post
November 16th, 2006
I sell several hundred credit card machines through the company website each month, and one of the most common questions is regarding the warranty on a credit card machine, and how long will a terminal last. Verifone and Hypercom offer 5 Year terminal warranties (1 year on the printer) and Lipman offers a 1 year warranty on their terminals.
How long should a credit card terminal last?
A warranty for a credit card terminal will cover any manufacturer defects with the terminal. Luckily, 99% of the time any defects are found within a week or two of using a terminal, as something that is going to fail is almost always going to fail early on. Thanks to the lack of advanced electronics in most credit card terminals, they are extremely reliable and will operate for many years under normal conditions.There are many terminals in operation today that are over 20 years old. Early Tranz and Zon series terminals, which were originally manufactured in the early 80’s are still working strongly, and are probably the most reliable terminal that have ever been made.
As long as any manufacturer defects are discovered early on, the terminal itself can fairly easily last 6 years or more. The expected life on a credit card terminal from the manufacturer is normally about 100,000 hours. With less than 10,000 hours in a year, the lifespan of a terminal should be around 10 years. The main reason that terminals don’t last this long, is that they are heavily used, dropped, or abused which reduces their life. Things like spilling a soda on the terminal, or dropping it on the floor will almost always drastically reduce the life of a terminal, if it doesn’t break it completely.
Maximizing the life or your terminal:
For a short period of time, liquids or physical shock are the most damaging things to a credit card machine. Looking at a terminal over time, heat, dirt and debris will reduce the overall life of your terminal.
Keep the terminal clean and avoid spilling food and especially liquids on it. Try to keep it in an area where there is adequate airflow, and someone where it wont get bumped or dropped.
Heat kills electronic equipment, and some of the components in a terminal can get fairly warm. Over time this degrades the internal components of the terminal, and will reduce the overall lifespan of the electronics. Try not to keep the AC adapter directly next to the terminal as it is probably the hottest part of the terminal. Also, try not to put the terminal in the exhaust path of a cash register or computer as these can produce a lot of heat that gets blown directly into the terminal.
If you do spill a liquid on it, immediately unplug it and call you processor for cleaning instructions. Normally drying it out and cleaning some of the parts with a mild isopropyl alcohol and water solution will fix it, but contact you provider or you may void your warranty or break your terminal by improperly cleaning it. Also, some terminals have intrusion prevention devices that will cause your terminal to be inoperable if it is opened, so don’t actually disassemble your terminal. The bottom line is that if you spill something on it, unplug it and call your processor’s technical department.
November 2nd, 2006
The computer industry constantly pushes the idea that everyone needs the latest and greatest computer in existence, when something for 1/10th of the price would be perfectly sufficient for most people. The credit card processing industry, especially in the retail and restaurant fields, often works similarly, where business owners are frequently convinced that they need some extravagant processing system in order to accept credit cards.
If you own a business, the last thing you want to be worrying about it whether your credit card processing system is going to work. It should be pretty much a rock solid, reliable system. Despite the price, the more complex systems out there can be the least reliable.
POS and complex processing systems are very difficult to setup, and difficult to maintain. If there are problems, support is often hard to get, complicated, expensive and time consuming. I have seen a software company take over 2 months to properly setup their system with a customer of mine. This system cost over $10,000 just to setup and it was constantly breaking. When you get a POS system, any support for your equipment, goes to the POS company and not your merchant service provider.
This situation is not uncommon for many restaurants and businesses with these expensive systems. What these businesses didn’t believe was that a simple credit card machine for $300 and a cash register for $800 would have been a much more cost effective system, that would have been minutely less efficient, but much easier to use. That $9,000+ difference in price will never be made up using that expensive system.
POS and complex processing equipment has its place:
There is no doubt that POS systems have their place with some businesses. Businesses with huge inventories would be completely lost without them, as would extremely high volume, complex menu, or high speed restaurants.
For many smaller retail and restaurants, especially start-ups, it’s just overkill!
What you do need:
I know restaurants that process over $5,000,000 per month in credit cards, and they use 5 impact cash registers and 5 Hypercom T7 Plus credit card machines. While this may not quite meet the demands of your business, you should carefully weigh your options before making your decision. Do you really need to spend thousands of dollars on something that may not help you in the long run. Find a system that is able to grow as the needs of your business grow. If you do opt for a complex processing system, make sure you aren’t going to need to replace it any time soon, and that it is very well supported. Replacing a credit card machine is cheap, but replacing a POS system is not. Also, don’t forget to take into account the time it takes to train an employee on how to use your system. A credit card machine only takes about 10 minutes to learn the basics, a POS system could take 10 hours or more.
Especially in the case of a start-up business, the money spent on a complex, expensive system is almost definitely better suited elsewhere. Don’t believe a salesman that tries to convince you that you need their system just because they say you do or throw some charts at you. As long as your processing method works smoothly and securely, your customers will not know or care what you are using to process their card. Only you can determine if you need that expensive system. If you’re in doubt, opt for the cheaper method and upgrade later.
Finally: Ask yourself if you really need all of the features, and if you really can justify the cost before buying into any expensive processing or other business equipment. Is your business better off spending that $10,000 elsewhere and upgrading later?
October 25th, 2006
FDMS recently came out with their own credit card terminal called the FD-100.
The FD-100 is a small simple credit card terminal that is poised to become a major competitor on the counter top of companies processing on First Data platforms. First Data is by far the largest processor in the US, making this terminal available for a large number of businesses.
What sets the FD-100 apart from the competitors is the advanced features at a very low price (Most likely around $200). While it is lacking an internal pinpad, it has a touch screen, and comes with the ability to process over the internet (IP capable) right out of the box, with a seperate WiFi module available for WiFi wireless processing. The printer is a quick 15 lines per second thermal printer, using a standard paper size. The terminal itself supports recurring billing, has a built-in function to process corporate cards, automatically prompting for the extra required information. The terminal is compatible with gift card and check service programs, including telecheck. The terminal has tip applications for restaurants, can be setup with automatic gratuity, has a open/close tab option for bars or restaurants, and can be programmed with gratuity recommendation lines for customer receipts. The memory will store up to 450 credit transactions, and the terminal stores the previous 8 batch information for quick reference.
The FD-100 is currently supported on the FDMS Nashville platform, and will be certified on the FDMS Omaha platform in a few weeks (FDMS Platform information).
September 14th, 2006
If you know much about payment processing or have paid attention to the credit card terminals that businesses use where you shop, you would quickly realize that technology in credit cards and processing equipment has barely changed in the last 20 years.
The first Verifone Zon series terminal was introduced by Verifone in 1983. Some of those terminals, manufactured in 1983 are still being used today. Most new terminals still use the same, relatively simple technology found in the original Zon terminals.
In an age where the average person can construct a near-super computer, why have we not adopted better technology into paying for merchandise?
Much like the military, credit card processing relies on reliability and consistency. However, many of the newer technologies that we see are very reliable. The older technologies are also more expensive to manufacture because they are outdated.
With this is mind, the major hold on advancing payment technologies lies in consumers. Payment processing is a 100% consumer driven industry. Merchant account providers, ISO’s, Processing Banks, and Credit Card Companies exist because businesses want an easy way to accept payments, but more importantly and ultimately the deciding factor: consumers want an easy way to pay.
Credit cards offer that simple, cheap, fast, and convenient method of paying for something. The new technologies that exist, smart cards and contact-less payments, which are intended to make paying even quicker and simpler, are great ideas but they share one fatal flaw hindering their widespread adoption.
These technologies are derived from the needs of large corporations and not consumers. How many consumers care if McDonald’s can save thirty million dollars per month if each person they serve can pay for their food 2 seconds quicker?
None…
Eventually these technologies will be pushed on to consumers, but it is definitely going to take time. There is great expense for businesses to adopt new systems and the act replacing a billion credit cards with something that costs 10 times as much is no desirable task for any bank.
Between smart cards and contact-less payments, I would place my bet on contact-less becoming the next thing for payment processing. But, it’s still not going to happen any time soon.
Related Posts:
The history of credit card terminals.
September 13th, 2006
Here is some great news I came across in regards to WiFi processing. Verifone and D-Link are going to form an alliance to help support and push WiFi credit card processing. While it is fairly straight forward to setup a WiFi processing system, there are very few service providers that can support WiFi. Hopefully with this strategic partnership, we will see a huge advance in the availability and support of WiFi credit card terminals.
Between WiFi, Wireless, and Broadband/Ethernet/IP processing, I think that we are seeing the beginning of the end of the land-line credit card machine.
Link to the original article…
Related Posts:
WiFi Credit Card Processing
June 6th, 2006
I just found out about some very important news that is highly relevant to anyone using a Nurit 3010, a Nurit 2090 or any other wireless terminal that operates on the Motient or Mobitex networks. In a few months, all Mobitex and Motient network terminals will be unable to process on those networks. Essentially the networks are being shut down for wireless processing. Wireless terminals will only be allowed to operate on the Cingular GPRS network, and soon the Verizon CDMA network. The GPRS and CDMA networks are much more reliable with better coverage than that Motient and Mobitex networks. All Nurit 3010 and Nurit 2090 terminals will be obsolete when the switch is made. Nurit 8000 terminals that do not operate on the GPRS network will also be obsolete.
Because of this recent news, I strongly advise against buying any wireless terminal except a Nurit 8000 GPRS, or a Verifone VX terminal that processes on the GPRS and/or CDMA networks. Additionally, due to the acquisition of Lipman by Verifone, we can expect some major changes in the Lipman product line, and we may possible see Verifone dissolve Lipman into the Verifone product line completely.
June 5th, 2006
Something new I learned today was that newer Verifone Omni 3750 credit card terminals can come with a mobile version of McAfee virus scan installed on them. While I have never heard of a credit card terminal virus, nor have I personally seen a McAfee installed Omni, I think this is a really interesting feature that is showing someone is looking toward the future.
The way this particular virus scanning system works, is similar to the computer based McAfee. A local scanning utility is installed on the terminal, which automatically watched for viruses and other malicious scripts. This software on the terminal is automatically updated from a central McAfee server. Because of the nature of the software, it would only be necessary for Omni’s processing over a broadband connection. In this case, the terminal could be vulnerable to anything that exists on the internet. Again, I have never hear of a credit card terminal virus, but as advanced as the Omni 3750 is, I think that it could be possible for someone to target these terminals with a virus.
I will post any updates on Credit Card Terminal virus scanning if I come across them.
Link to Verifone’s McAfee information page
May 17th, 2006
The Verifone Omni 3740 and 3750 are able to process over the internet using a dual comm or Ethernet module. This allows the terminal to process transactions extremely quickly, and allows businesses to utilize existing internet capabilities and to avoid tying up a dedicated phone line.
This post is a simple guide to setting up a network allowing a Omni to process through it. The Omni can process on a network with just about any other hardware on it as long as the network is setup correctly. While it is fairly simple to setup the network, it can be tricky to get the omni to work smoothly right from the start. The biggest cause of failure is the Omni having an outdated software version. Once the correct software version is installed on the Omni, and the downloads are complete (may take up to 7 separate downloads for the terminal to be configured correctly), it is normally as simple as plugging the Omni in.
Requirements:
IP Based Connection (Cable Internet, DSL, T1, T3, etc)
Internet Router or Switch
Appropriate Cat 5 / Cat 5E / Cat 6 cables
Verifone Omni with Dual Comm or Ethernet Module
A simple knowledge of computer networking is helpful in setting the Omni up to process over an IP connection. Also, most processors do not have the ability to program the Omni over an IP connection, so the Dual Comm module is necessary to setup the Omni. This way, the Omni is programmed over a standard phone line, and then switched to the IP connection once it is properly programmed.
If you have broadband internet, all you really need to hook up the Omni is a router with an open port, and an Ethernet cable to connect the Omni to the router with.
Depending on the specific network, the Omni can be configured to connect to the router using DHCP (Dynamic Host Configuration Protocol) or with a static IP address. DHCP allows the router to assign an address to the Omni and can make setting up the entire network much easier. The IP address type and value are set in the Omni Communications Menu. This is something that should be set with the help of your processor’s tech support to avoid any problems.
As long as the Omni has the correct software versions and the downloads are completed successfully, processing over an IP connection is virtually a plug and go process. Outdated software versions, incomplete downloads and network misconfiguration can create a troubleshooting nightmare trying to get the Omni to process.
Another thing to keep in mind, is that back end processing networks still use analog technologies. An Ethernet connection is a digital connection. Your processor uses a 3rd party service to convert the digital omni transaction into an analog transaction on their end. Because of this, every omni has a unique signature and must be individually programmed with the processor and the 3rd party conversion service. While this setup is normally transparent, it can cause problems onthe back end, which your processor must clear up before the Omni can process.
Related Posts:
Convert an Omni 3740 or 3750 for Ethernet Processing
Tested routers for the Omni 3750 and other Verifone ethernet terminals
Related Information:
Setting up a simple computer network - solution 3 is recommended!
May 15th, 2006
This is probably the biggest news in many years relating to the credit card processing equipment industry. Verifone Holdings Inc. is set to acquire Lipman Electronic Engineering Ltd in a merger of 2 of the largest processing equipment manufacturers in the world.
Lipman is the 3rd largest processing equipment manufacturer in the World, while Verifone is the largest. Lipman manufacturers the popular Nurit line of processing terminals, and while Lipman is only the 3rd largest market holder in land-line processing equipment, they are the undisputed leader in wireless processing equipment having a 90%+ market share in wireless terminals. Verifone’s wireless terminals have been accepted in other countries but are very limited in their use in the US. This appears to be a very smart and well founded acquisition for Verifone.
Hypercom who is the 2nd largest equipment manufacturer in the world, will look dwarfed by the size and market share in every area of Verifone. Hypercom’s terminals are very easy to use, reliable and low cost, so they appear to be in little danger for the time being.
April 21st, 2006
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